TTD, TPD, PTD, NOIDs

When a work injury keeps you from earning your normal wages, Minnesota workers’ compensation may provide wage-loss benefits. The type of benefit depends on whether you are completely unable to work, working but earning less, or permanently unable to return to gainful employment.

The three primary wage-loss benefits are:

  • Temporary Total Disability (TTD)
  • Temporary Partial Disability (TPD)
  • Permanent Total Disability (PTD)

Disputes can arise over all three.

An insurer may deny benefits from the beginning, reduce them, or attempt to stop benefits that are already being paid through a Notice of Intention to Discontinue, commonly called an NOID.

Understanding the differences between these benefits is important because each has different requirements, limitations, and consequences.

What Are Wage-Loss Benefits?

Wage-loss benefits are intended to replace part of the income an employee loses because of a compensable work injury. The correct benefit depends primarily on the employee’s ability to work and earn wages.

Temporary Total Disability — TTD

Temporary Total Disability, or TTD, is generally payable when a work injury prevents an employee from working.

TTD may also be payable when an employee has work restrictions caused by the injury but the employer cannot provide work within those restrictions.

The TTD rate is 66⅔% of the employee’s gross weekly wage at the time of injury, subject to statutory minimum and maximum rates. 

A simple example

Suppose an employee earned $1,500 per week before the injury. Two-thirds of $1,500 is approximately $1,000. The employee’s TTD rate will therefore be $1,000 per week.

The calculation of an employee’s earnings can be complicated depending on the employee’s earnings history, overtime, multiple jobs, irregular wages, seasonal work, and the statutory maximum or minimum in effect on the date of injury.

When Can TTD Be Paid?

TTD commonly applies when:

  • your doctor takes you completely off work;
  • you have restrictions and your employer cannot accommodate them;
  • you are medically unable to continue working because of the injury; or
  • you remain unable to earn wages because of the effects of the work injury and satisfy the applicable legal requirements.

But entitlement to TTD can also depend on vocational and factual issues such as whether suitable work is available and whether a job search is required.

When Can TTD Stop?

TTD is not automatically payable indefinitely. Minnesota Statutes 176.101 contains several events that can cause TTD to cease.

Depending on the circumstances, benefits may be affected when an employee:

  • returns to work;
  • is released to work without restrictions related to the injury;
  • reaches maximum medical improvement and the applicable 90-day period expires;
  • refuses suitable work;
  • fails to cooperate with rehabilitation;
  • fails to make a diligent job search when one is required; or
  • reaches the statutory duration limit.

For many current Minnesota claims, TTD is generally subject to a 130-week limitation, although retraining and other statutory provisions can affect the analysis. Because the date of injury controls which version of the statute applies, older claims may be governed by different rules.

What Is Maximum Medical Improvement?

Maximum medical improvement, or MMI, means that no further significant recovery or lasting improvement can reasonably be anticipated.

MMI does not mean:

  • you are cured;
  • you have no pain;
  • you have no restrictions;
  • you can return to your old job; or
  • your workers’ compensation case is over.

But MMI can have a significant effect on TTD. TTD may cease 90 days after proper service or receipt of a written MMI report. That is why an MMI report should never be ignored.

Temporary Partial Disability — TPD

Temporary Partial Disability, or TPD, is generally payable when an injured employee returns to work but earns less because of the work injury.

Minnesota law generally calculates TPD at 66⅔% of the difference between the employee’s pre-injury weekly wage and the wage the employee is able to earn in the partially disabled condition. 

A simple example

Suppose an employee earned $1,500 per week before the injury. After returning to work with restrictions, the employee earns $900 per week. The wage difference is: $1,500 − $900 = $600. Two-thirds of that difference is: $400

So, subject to the applicable statutory requirements and maximum rate, the employee may be entitled to approximately $400 per week in TPD in addition to the wages earned from the job.

What Are the Requirements for TPD?

Generally, TPD requires that:

  • you are working;
  • you are earning less than your pre-injury weekly wage; and
  • the reduced earning capacity is causally related to the work injury.

The wage loss alone is not always enough. An insurer may argue that the lower earnings are caused by something other than the work injury.

For example, the insurer may claim that:

  • you voluntarily reduced your hours;
  • you changed careers for personal reasons;
  • you are working below your earning capacity;
  • you are not conducting an adequate job search;
  • your restrictions are unrelated to the work injury; or
  • the wage difference reflects economic conditions rather than disability.

Those disputes can become heavily dependent on medical and vocational evidence.

How Long Can TPD Last?

For injuries occurring on or after October 1, 2018, Minnesota law generally limits TPD to 275 weeks of paid benefits or 450 weeks after the date of injury, whichever occurs first, subject to special rules involving approved retraining. 

Older injuries may have different limits. Because workers’ compensation law generally follows the law in effect on the date of injury, you should not assume that a current limitation applies to an older claim.

Why TPD Can Be More Valuable Than People Realize

A small weekly wage-loss benefit can become significant over time. For example, a $300-per-week TPD benefit paid for 200 weeks equals: $60,000

That is why an employee who returns to work should not assume the workers’ compensation case is essentially finished.

Permanent restrictions and reduced earning capacity can create substantial continuing exposure.

TPD can therefore be a major factor in settlement value.

Permanent Total Disability — PTD

Permanent Total Disability, or PTD, applies in the most serious cases.

PTD is generally payable when an employee is permanently unable to return to gainful employment because of the effects of the work injury and meets Minnesota’s statutory requirements. 

PTD is not simply based on whether the employee can return to the old job.

The broader question is whether the employee is permanently unable to obtain and maintain substantial gainful employment.

What Does Minnesota Require for PTD?

Minnesota law identifies certain catastrophic injuries that qualify.

For other injuries, an employee must generally establish both:

  1. permanent inability to work at an occupation that produces income; and
  2. the applicable permanent partial disability threshold.

For injuries governed by the current statute, those thresholds include:

  • at least 17% whole-body PPD; or
  • at least 15% whole-body PPD if the employee was at least 50 years old at the time of injury; or
  • at least 13% whole-body PPD if the employee was at least 55 at the time of injury and had not completed grade 12 or obtained the applicable high-school equivalency credential. 

Meeting a PPD threshold does not by itself establish PTD.

The employee must still prove permanent total incapacity from gainful employment.

What Evidence Matters in a PTD Case?

PTD cases often require both medical and vocational evidence.

Important considerations may include:

  • age;
  • education;
  • work history;
  • transferable skills;
  • physical restrictions;
  • psychological limitations where compensable;
  • ability to work consistently;
  • prior occupations;
  • labor-market conditions;
  • QRC opinions;
  • vocational expert opinions;
  • ability to retrain; and
  • Social Security disability evidence.

For many injured workers, the key question is not whether they can theoretically perform some task. It is whether they can realistically obtain and maintain meaningful employment in the competitive labor market.

How Much Does PTD Pay?

PTD is generally based on the same two-thirds wage framework as TTD, subject to statutory minimum and maximum rates. Minnesota DLI states that PTD is subject to a minimum rate equal to 65% of the statewide average weekly wage. 

There can also be statutory offsets involving Social Security disability benefits after the required amount of PTD has been paid.

Because PTD claims can involve very substantial lifetime exposure, calculation and settlement issues should be evaluated carefully.

What Is an NOID?

An NOID is a Notice of Intention to Discontinue Workers’ Compensation Benefits.

Once an employer or insurer has begun paying compensation, Minnesota law generally requires written notice before those benefits can be discontinued.

The NOID must state the intended date of discontinuance and clearly explain the factual basis for stopping benefits. Medical reports or other written reports relied upon for the discontinuance are generally required to accompany the notice. 

Why Might an Insurer File an NOID?

An insurer might argue that:

  • you returned to work;
  • your wage loss ended;
  • you can return to work without restrictions;
  • your work injury resolved;
  • your current disability is unrelated to the injury;
  • you reached MMI;
  • you refused suitable employment;
  • you failed to cooperate with rehabilitation;
  • your current wages accurately reflect your earning capacity; or
  • you are no longer entitled to the particular benefit being paid.

Receiving an NOID does not necessarily mean the insurer is correct. It means the insurer is taking the position that benefits should be reduced or stopped.

Can I Challenge an NOID?

Yes. Minnesota law provides procedures for challenging a discontinuance. An employee may request an expedited administrative discontinuance conference under Minn. Stat. § 176.239. In other situations, or if the employee disagrees with an interim decision, an Objection to Discontinuance may be filed. 

The deadlines can be short. If you receive an NOID and disagree with the insurer, act promptly.

Do not put the notice aside assuming the issue can be addressed later.

What Happens at a Discontinuance Conference?

A discontinuance conference is designed to provide an expedited interim decision about whether wage-loss benefits may be stopped.

Evidence may include:

  • medical records;
  • treating-physician opinions;
  • IME reports;
  • work restrictions;
  • wage records;
  • QRC reports;
  • rehabilitation records;
  • job offers;
  • job-search records; and
  • other information relevant to the claimed basis for discontinuance.

The specific reason stated in the NOID matters.

A dispute over MMI, for example, may look very different from a dispute over whether current earnings accurately reflect earning capacity.

What If the Insurer Denies Wage-Loss Benefits From the Beginning?

That is different from an NOID.

An NOID generally involves benefits that have already been paid and that the insurer now wants to discontinue or reduce.

If the insurer has never accepted responsibility for wage-loss benefits, it may instead issue a denial of liability.

The insurer might accept the injury but deny wage loss, or it might deny the entire workers’ compensation claim.

Why Are Wage-Loss Benefits Denied?

Common disputes include allegations that:

  • the injury is not work-related;
  • there is no adequate medical support for disability;
  • you can work without restrictions;
  • you failed to conduct a sufficient job search;
  • your current wage loss is unrelated to the injury;
  • you voluntarily left suitable employment;
  • you were terminated for reasons unrelated to the injury;
  • the work injury was temporary and has resolved;
  • a pre-existing condition is causing the disability; or
  • an IME physician believes you have recovered.

A denial is the insurer’s position.

It is not automatically a final determination of your legal rights.

What If I Was Fired or Laid Off?

Losing your job after a work injury does not automatically eliminate workers’ compensation wage-loss benefits.

But the reason employment ended can become important.

Relevant questions may include:

  • Were you medically restricted?
  • Could you still perform the job?
  • Were you terminated for misconduct?
  • Was the position eliminated?
  • Was the employer accommodating your restrictions?
  • Did you begin looking for other suitable work?
  • What does your treating physician say?
  • What does the QRC say?

These cases can become fact-intensive. The mere fact that employment ended does not answer whether ongoing wage loss is related to the work injury.

What If I Tried to Return to Work but Could Not Continue?

A failed return to work can support a renewed wage-loss claim in appropriate circumstances.

For example, an employee may attempt to work but discover that the job exceeds the employee’s restrictions or substantially aggravates symptoms.

Important evidence may include:

  • the job duties;
  • hours worked;
  • treating-doctor restrictions;
  • why the work attempt ended;
  • medical records after the work attempt;
  • employer accommodations; and
  • rehabilitation evidence.

Do not assume that trying to return to work means you have permanently given up wage-loss benefits.

What If My Employer Offers Me a Light-Duty Job?

A job offer can affect wage-loss benefits.

The key question is whether the work is suitable and actually consistent with the employee’s restrictions.

Before refusing modified work, consider:

  • the physical duties;
  • lifting requirements;
  • hours;
  • wages;
  • location;
  • whether your doctor approves the job;
  • whether the employer can actually accommodate the restrictions; and
  • your QRC’s position, if you have one.

Refusing suitable work can create serious benefit issues.

If you are unsure whether a job offer is appropriate, obtain advice before simply rejecting it.

What Role Does a QRC Play in Wage-Loss Claims?

A Qualified Rehabilitation Consultant, or QRC, can be very important when an employee cannot return to the pre-injury job.

A QRC may assist with:

  • return-to-work planning;
  • communications with the employer;
  • job placement;
  • job-search assistance;
  • vocational testing;
  • transferable-skills analysis; and
  • retraining evaluation.

QRC records can also become important evidence when the insurer disputes whether an employee is capable of earning more.

What If I Am Working but My Hours Keep Changing?

TPD claims often require wage documentation.

If weekly earnings vary, the insurer may request wage verification before calculating the TPD benefit.

Minnesota DLI states that when wages vary, TPD is generally due within 10 calendar days after the employee or employer provides the wage-loss documentation to the insurer. 

Keep copies of:

  • pay stubs;
  • time records;
  • wage statements; and
  • any documentation submitted to the insurer.

Do not assume the insurer already has everything it needs to calculate your benefit correctly.

What If My Wage-Loss Check Is the Wrong Amount?

Errors can occur.

Potential issues include:

  • incorrect average weekly wage;
  • omitted overtime;
  • missing second-job earnings;
  • incorrect compensation rate;
  • wrong TPD calculations;
  • missing weeks;
  • incorrect wage verification; or
  • improper application of maximum or minimum rates.

Because even a relatively small weekly error can become significant over time, wage calculations should be reviewed carefully.

How Do Wage-Loss Benefits Affect Settlement Value?

Wage-loss exposure can be one of the largest components of a Minnesota workers’ compensation settlement.

When evaluating settlement, we may consider:

  • the weekly TTD rate;
  • remaining TTD exposure;
  • current TPD amount;
  • remaining weeks of TPD;
  • permanent restrictions;
  • likelihood of future wage loss;
  • potential PTD exposure;
  • vocational rehabilitation;
  • retraining;
  • future earning capacity;
  • medical evidence; and
  • litigation risk.

A settlement should not be evaluated only by looking at the amount of the insurer’s current offer.

The more important question is: What future benefits is the insurer asking you to give up?

When Should I Speak With a Minnesota Workers’ Compensation Attorney?

Consider getting legal advice if:

  • your wage-loss benefits were denied;
  • your checks suddenly stopped;
  • you received an NOID;
  • the insurer says you can return to work;
  • an IME doctor released you without restrictions;
  • you reached MMI;
  • you returned to work at lower wages;
  • you believe your TPD is being calculated incorrectly;
  • your employer offered modified work you are unsure you can perform;
  • you were fired or laid off after the injury;
  • you cannot return to your pre-injury occupation;
  • retraining may be appropriate;
  • PTD may be an issue; or
  • the insurer has made a settlement offer.

Wage-loss claims often involve the interaction of medical evidence, employment facts, vocational evidence, and statutory benefit limits.

Small decisions made early in the claim can have significant consequences later.

Minnesota Workers’ Compensation Attorneys for Injured Workers

Lemmon & Tanasychuk, LLC represents injured employees throughout Minnesota.

We represent worker in matters involving:

  • Temporary Total Disability (TTD);
  • Temporary Partial Disability (TPD);
  • Permanent Total Disability (PTD);
  • NOIDs and discontinued benefits;
  • denied wage-loss benefits;
  • maximum medical improvement;
  • independent medical examinations;
  • work restrictions;
  • QRC and rehabilitation issues;
  • retraining; and
  • workers’ compensation settlements.

If your wages have been reduced because of a work injury, your benefits have been stopped, or you are unsure whether the insurance company is paying what it should, we can review your claim and explain your options.

Contact Lemmon & Tanasychuk, LLC for a free consultation.

This article provides general information concerning Minnesota workers’ compensation law and is not legal advice. Workers’ compensation rights depend on the facts of each claim and the law in effect on the applicable date of injury.