Indiana Workers’ Compensation Benefits

In Indiana, employees who are injured on the job are entitled to receive workers’ compensation benefits. On the other hand, independent contractors typically are not. For more information on workers’ compensation eligibility, visit our blog post Indiana Workers’ Compensation Eligibility.

Medical Expenses

The Indiana Workers’ Compensation Act requires employers to pay for all the medical care that is “reasonable and necessary” to treat a worker’s injuries. There is no waiting period for the injured worker to receive medical benefits. The employer’s duty to pay for medical care continues until the injured worker reaches maximum medical improvement (i.e., the worker has recovered as much as he or she is going to). After that, the employer is required to pay for the care needed to reduce or limit the worker’s impairment.
Common medical expenses may include:
• doctor and hospital visits,
• surgical procedures,
• ambulance transportation,
• medical devices and equipment,
• physical or occupational therapy, and
• prescription medication.

Wage Replacement Benefits

Workers’ compensation helps replace some or all of a worker’s lost income during the worker’s recovery from a work-related injury. Wage replacement benefits are NOT taxed. The amount of compensation a worker will receive depends on the classification (temporary or permanent) and severity of the injury (partial disability or total disability).

Temporary Total Disability

A worker may receive temporary total disability (TTD) benefits when he or she cannot do any work because of his injury. TTD benefits are calculated as two-thirds of the worker’s average weekly wage during the year before the injury occurred. In Indiana, the maximum average weekly wage for determining benefits is $1,170 (as of 2020). That equates to a maximum TTD benefit of $780 per week. TTD benefits last for a maximum of 500 weeks or until the worker reaches maximum medical improvement.

Temporary Partial Disability

If the injured worker returns for light-duty work or for fewer hours than he or she worked before the injury, the worker may be paid temporary partial disability (TPD) benefits. TPD benefits will cover the difference between the worker’s pre and post-injury wages (up to the maximum mentioned above for TTD). TPD benefits last for a maximum of 300 weeks.

Permanent Partial Disability

Once the doctor determines that the injured worker has reached maximum medical improvement, the worker will be evaluated to determine whether he or she has any permanent impairment. This is known as the permanent partial impairment (PPI) rating. The PPI rating is the percentage of your body that has been permanently damaged. Once determined, the PPI rating will be converted into a dollar amount of benefits using a complex formula set out in Indiana’s workers’ compensation laws. Indiana’s PPI values and calculations can be found HERE.

Permanent Total Disability

If the injury prevents the worker from performing any reasonable work, he or she is entitled to receive either the amount that would result from a PPI calculation or a permanent total disability award (500 weeks at the TTD rate), whichever is greater.

Death Benefits

In the unfortunate event the worker loses his life from a work-related injury or illness, workers’ compensation will provide death benefits to his beneficiaries. Death benefits are two-thirds of the worker’s average weekly wage (up to the maximum) paid over 500 weeks.

The workers’ compensation claims process can be complex. If you have questions involving any aspect of workers’ compensation or any potentially compensable claim, please contact the attorneys at McNeelyLaw LLP by visiting mcneelylaw.com or calling our office at 317-825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.