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Services
> Salary Continuation
Program
Salary
continuation, also known as Wages in Lieu of Temporary Total
Disability (TTD), is a privilege granted by the BWC that
allows employers to pay an injured worker their normal wages
while they are unable to work due to a work-related injury.
Purpose
A reserve
is set on all active lost-time claims. This reserve is added
to the compensation and medical paid in a claim to develop
your total modified losses, which is then used to determine
an employer’s experience rate and subsequent premium. If
an employer pays salary continuation in a claim and avoids
compensation from being paid by the BWC, it prevents a reserve
from being established in the claim.
Benefits
- Avoids
costly reserves
- Can
lower premiums
- Decreased
wait time for workers compensation checks to begin
- Supports
communication between the employer and injured worker
- May
discourage need for injured worker to seek legal advice
Risk
- Initially,
salary continuation may be recommended when lost time
does not exceed 12 weeks. However, the cost of continuing
an injured worker’s salary can sometimes outweigh potential
savings. Hunter Consulting Company will make a recommendation
on each specific situation.
- The
BWC allows an employer to pay salary continuation, but
an injured worker can still file a permanent partial award,
schedule loss award, permanent total disability, facial
disfigurement or death benefits and a reserve will be
assigned to a claim, regardless of previous salary continuation
being paid.
- The
injured worker is not required to accept salary continuation.
Process
- Decision
to pay salary continuation must be made at the onset of
the claim, as it cannot be paid once the BWC has issued
TTD.
- Salary
continuation must be paid immediately so there is no lapse
in pay for the injured worker.
- The
employer must notify the BWC within 48 hours and Hunter
immediately that they are paying salary continuation.
- BWC
form C-55 (Salary Continuation Agreement) must be completed
by the employer and injured worker and then provided to
the BWC. The employer may be asked to submit payment summary
and wage information in writing as a follow up. The C-55
form to document payment of salary continuation can be
obtained from the BWC claims service specialist (CSS),
the BWC website or from Hunter.
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The employer must report the return to work within 72
hours (3 business days). Failure to do so may impact the
employer’s eligibility to participate in the salary continuation
program.
- The
employer must notify BWC immediately if salary continuation
is stopped for any reason. The CSS will investigate to
determine the injured worker’s continued eligibility to
receive TTD.Discounts
Recommendation
Practice
a consistent policy of continuing wages in all claims that
meet your list of parameters. You do not want to be accused
of discrimination. You should consult with your legal counsel
so that a policy is carefully developed and followed consistently.
It is also recommended that you contact your Claims Examiner
at Hunter to review the specifics of the claims and ask
them to answer any questions you may have regarding salary
continuation.
Contact
us for more information.
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