How do they get to that number? Working through Illinois Workers' Compensation settlements

By: Angie Zinzilieta, Partner
​You may have heard that workers’ compensation settlements work differently than a personal injury lawsuit settlement.  In Illinois, workers’ compensation settlements work require some math.  The following post is based on Illinois workers’ compensation law.  Each state has its own laws and rules concerning workers’ compensation cases.
 
QUICK VOCABULARY:
 
WC        workers’ compensation
 
AWW    average weekly wage (This is the average amount you were making for the 52 weeks prior to                             your workplace injury.)
 
TTD      total temporary disability (This is similar to an unemployment payment.  In Illinois, this amount is                    2/3 of your AWW.)
 
PPD       permanent partial disability (This is typically what is considered your WC settlement.  Employers                     are required to pay PPD benefits to injured workers suffering from an amputation, physical                               impairment, or disfigurement caused by job-related injuries, but is able to perform work at some                    level.)
 
PTD      permanent total disability (A complete disability that leaves an employee permanently unable to                    do any kind of work for which there is a reasonably steady job market.  PTD benefits entitle an                          employee to a weekly benefit of two-thirds of their average weekly wage, subject to certain                               minimum  and maximum limits, for life.)
 
In Illinois, your PPD is calculated as follows:
 
(60% of AWW) X (Value of Body Part)(% of Disability) = PPD
 
The percentage of disability is based on any residual effects of your workplace injury.  For
example, you may have limited range of motion or permanent restrictions, or you may be
unable to do activities that you were able to do before your injury.
 
The “Body Part Value Charts” are below:

Generally, if you have shoulder, back, or neck injury, that injury is considered to be part of the "Body as a Whole."

                                               EXAMPLE OF HOW A WC SETTLEMENT WOULD BREAK DOWN:

Sandy injured her back carrying a large package from her delivery van to a customer's door.  Sandy went to the doctor and was diagnosed with a disc injury.  Ultimately, after physical therapy and epidural injections, Sandy was required to have a disc replacement surgery.  Sandy can no longer bend repetitively or lift more than 30 pounds, and her spinal surgeon has placed her on permanent restrictions prohibiting such.  In all, we believe that Sandra has suffered a PPD of 40% Body as a Whole.  In the year prior to her injury, Sandy made $1,000 per week before any taxes, insurance, 401(k), etc., were taken out.

What is Sandra's AWW?  Sandra's AWW is $1,000.

What is Sandra's PPD rate?  500 weeks X 40% = 200 weeks

How much would Sandra's PPD award be?  200 weeks X ($1,000 X 60%) = $120,000

In Illinois, attorney's fees are capped at 20%.  So, if Sandra received a PPD award for $120,000, then the attorney's fees would be $24,000.