Calculating Reduced Earnings Benefit Rates in New York.

How do we calculate reduced earnings benefits in New York?

We need to know only two quantities: What did the claimant earn (AWW) pre-injury? and What does the claimant now earn (post-injury)? The claimant is entitled to 2/3rds of the difference between those two numbers, subject to the statutory caps in effect at the time of loss.

Calculating reduced earnings:
Pre-injury wage less post injury wage times 2/3rds = benefits due.
Or to put it another way,
(Pre Injury Wage – Post Injury wage) * 2/3rds = benefit rate.

Example.

To use simple numbers: imagine a preinjury wage of $200 per week, and a return to work wage (part time) of $100 per week, with your doctor telling you there is a “mild” disability. We don’t care about the “mild” part – any disability that results in a reduction of earnings is compensated at the same rate (2/3rds).

In this case, the difference is $100 per week, multiplied by the reduced earnings benefit (2/3rds) for a final benefit of $66.66 per week.

Greg Lois is the managing partner of LOIS LLC and dedicates his practice to defending employers and carriers in New York and New Jersey workers' compensation claims. Greg is the author of a popular series of "Handbooks" on workers' compensation, and is the co-author of the 2016 & 2017 Lexis-Nexis New Jersey Workers' Compensation Practice Guide. Greg can be reached at 201-880-7213 or glois@loisllc.com