Time Loss Compensation

What is time loss?

Time loss is a wage replacement paid to an injured worker when a work injury prevents him from working. As a starting point, time loss pays an untaxed 60% of the injured worker’s wages at the time of injury. The amount of time loss you are entitled to might be different depending on any benefits or bonuses you received from your employer at the time of injury, as well as your family status and dependents. See more on time loss wage calculation below.

Time loss allows you to get by while you recover from your work injury related conditions. Use this time to focus on treatment and becoming employable again. 

Who is entitled to time loss?

An injured worker is entitled to time loss if his work injury deems him “temporarily totally disabled.” This means you are not able to work because of your work injury. To get time loss, you must (1) open a workers compensation claim, (2) have your doctor fill out an Activity Prescription Form (APF) certifying that you cannot work, and (3) verify that you are not working by completing a Work Status Form monthly.

Activity Prescription Form (APF)

An Activity Prescription Form, often abbreviated to APF, is a form your attending provider fills out to tell your L&I or SIE claim manager your work restrictions. This includes how many hours per day you should be limited to and the specific activities you must refrain from. If your doctor restricts you from work and your employer cannot accomodate your restrictions, then you are entitled to time loss. The APF can also be used by a vocational counselor to determine if you are employable at some gainful employment in the labor market. The doctor usually must cite objective medical findings on the APF to support the restrictions. However, there are no objective medical findings required for mental health restrictions. Link to an APF.

Work Status Form (WSF)

A work status form, or WSF, is a form that must be filled out while you are on time loss to certify that you have not worked in any capacity while receiving time loss benefits from L&I or your Self-Insured Employer. It is imperative that you do not work while on time loss compensation. 

When does time loss end?

Time loss will end when it is shown you are capable of going back to work. This can happen in the following ways: (1) you actually go back to work, (2) your attending physician or IME doctor indicate you can work, (3) there is no certification from a doctor in an APF, (4) your vocational rehabilitation counselor determines you are capable of working, (4) your employer finds a new position for you that accommodates your restrictions, or (5) L&I or your self-insured employer simply makes a mistake or runs afoul of the law.

If you are not receiving time loss but think you legally should be, call our office to see if we can help.

Wage Calculation

Your time loss wage is calculated using the wages earned at the time of your injury. This includes any wages from other jobs, bonuses, tips, health insurance benefits, and more.

As mentioned above, as a starting point, L&I or your SIE will pay you 60% of this wage. However, this rate is increased if you are married (65%) and/or you have children (an extra 2% per dependent, up to 10%). Don’t leave it up to L&I or your SIE to get this calculation right. Make sure your wage order considers all your employment benefits and family status.

Once L&I determines your wage, you have 60 days to dispute it. After those 60 days, L&I’s wage order becomes final and binding. It is imperative that you make sure your wage is calculated correctly from the beginning of your claim. Call our office if you need help getting your wage order corrected.

• Maximum time loss

  • If your date of injury was between July 1, 1996 and June 30, 2024, the maximum monthly rate of time loss you may receive is $8,416.70

Alternatives to time loss

Not every injured worker will need or qualify for time loss. See the alternatives to time loss compensation below.

Kept on salary (KOS)

Some employers opt to continue paying an injured worker the wages earned at the time of injury until the injured worker becomes employable, hence the term, kept on salary. You are not entitled to receive both KOS and time loss benefits simultaneously.

Loss of Earning Power (LEP)

You are entitled to Loss of Earning Power (LEP) if your earning capacity has been decreased as a result of the industrial injury or occupational disease. To obtain LEP, your loss of earnings must be grester than 5 percent of wages at the time of injury. Examples of when an injured worker is entitled to LEP include the following:

• You return to work at a lower wage.

• You had more than one job at the time of injury and you become restricted from performing both jobs.

• You return to work at your regular wage but at fewer hours.