I hear lots of injured workers complain that their temporary total disability (TTD) benefit is not adjusted for inflation and cost of living increases, but instead remains stagnant until they reach maximum, medical improvement. TTD is based on an injured workers’ average weekly wage, which in turn is based on their earnings in the 52 weeks prior to the work injury. The “true value” of the weekly TTD check an injured worker receives in Illinois is devalued over time when there is a steady increase in the cost of living. Most people think of Cost of Living Adjustments (COLA) as associated with Social Security benefits. But here in the real world the cost of living doesn’t increase just for people on Social Security, it goes up for everybody else as well. Unfortunately, the only way to get extra money to cover cost of living increases in Illinois Workers’ Compensation is if you are deemed permanently and totally disabled after a hearing before the Illinois Workers’ Compensation Commission, or if you are the survivor of a fatally injured worker. In those cases, cost of living increases are paid to the recipients courtesy of the Rate Adjustment Fund. But everybody else, including workers on TTD, has to make due with 2/3 of their average weekly wage until the end of their claim.
Not all injured workers are left without the benefit of a COLA. For example, federal workers’ compensation recipients are entitled to a COLA that is determined in March of every year. The injured worker must be off of work for in excess of one year prior to March 1st, which is when the Office of Workers’ Compensation Programs (OWCP) COLA goes into effect annually. Other states also offer COLAs for injured workers that are receiving TTD benefits. The last significant reform of the Illinois Workers’ Compensation Act took place in 2011. Let’s all hope that when the next big reform comes down the pike, cost of living adjustments for workers on TTD will be included in the package. Provding injured workers with a cost of living increase as part of their temporary total disability benefits will go a long way to help protect injured Illinois workers and their families.
If you would like to know more about how workers’ compensation law works in Illinois, you can read all about it in my new book: The Illinois Workers’ Compensation Law Field Guide. The book is available via Kindle and in paperback. You can also reach out to me if you find yourself in a bad situation with a workers’ comp claim, or if you’ve been injured at work and want to start off on the right foot. All initial consultations are free of charge. I look forward to hearing from you!