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GQ Corner

Sep 1, 2016 | by Flahive, Ogden & Latson

GQ Corner Q. The claimant was released by his treating physician to return to modified duty work. While the claimant worked eight hours per day for a total of 40 hours per week prior to the compensable injury, his current restrictions include no more than 4 hours of work per weekday for a total of 20 hours per week. The claim employer confirmed that it can accommodate the relevant restrictions and is issuing a bona fide offer of employment accordingly, but the offered pay will naturally be limited to only half of the pre-injury average weekly wage. Can I suspend partial temporary income benefits (TIBS) if the claimant refuses the bona fide offer on these terms?

A. If the offer of modified duty employment comports with the Rule 129.6 requirements for bona fide offer status, Carrier may count the offered wage as post-injury earnings, even if the claimant fails to return to work. If the offered wages equals the pre-injury AWW, then no TIBS are owed. If the offered wages are less than the average weekly wage, partial TIBS are still owed.

Q. The claimant earns an annual bonus of $5,000 from the claim employer. In this case, although the bonus is attributable to work duties performed throughout the year and without regard to fluctuations in output or performance, the claimant received it during the 13 weeks prior to the compensable injury. Must I factor in the whole $5,000 into the average weekly wage (AWW) calculation?

A. No, you should pro-rate the $5,000 on an annual basis. For example, the AWW attributable to the bonus may be calculated by dividing the total annual bonus of $5,000 by the 52 weeks per year to arrive at $96.15 for inclusion in your AWW calculation.

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