If you are injured on the job in Vermont and unable to return to work for an extended period of time, you are entitled to receive certain disability benefits under workers’ compensation. This includes temporary total disability (TTD) and temporary partial disability (TPD) benefits. TTD benefits replace your wages if you are unable to work at all due to your injury, while TPD covers situations where you are earning less than your pre-accident wage because you are only able to work part-time or on light duty.
How Much More Will You Receive in Workers’ Compensation Each Week?
Disability benefits are paid weekly and equal approximately two-thirds of your average weekly wage prior to the injury. Vermont law, however, sets certain minimum and maximum weekly benefit levels. These benefits are further subject to annual increases to account for adjustments to the cost of living in Vermont.
Annual increases take effect every July 1 and cover the subsequent 12-month period. This means the next increase takes effect July 1, 2024. If you are currently on workers’ compensation and have been receiving disability benefits for at least 26 weeks (6 months) prior to July 1, you are entitled to this increase as well.
In terms of the numbers, the cost of living increase for 2024-25 is 1.037 percent. This is slightly below last year’s (July 2023) increase of 1.06 percent and is actually the lowest rate since July 2020, when it was also 1.037 percent.
So to put this in simple terms, let’s say you have been receiving $600 per week in temporary total disability benefits for the past year. Since you have received workers’ compensation benefits for at least 26 weeks, you are eligible for this year’s cost of living increase. Your new benefit amount would therefore be $600 multiplied by the cost of living adjustment (1.037), or $622.22 per week starting on July 1, 2024. Keep in mind, however, that if you have dependents under the age of 21, you also receive an additional $20 per dependent as part of your TTD or TPD benefits.
What Are the New Maximum and Minimum Benefit Levels?
As previously noted, the increase in the annual cost of living increase also affects the minimum and maximum weekly benefits that can be paid to an individual claimant. There are actually two different maximum benefit levels. Vermont law has separate rules applicable to disability benefits for injuries that occurred before July 1, 1986, and those that occurred on or after that date. Obviously, the majority of workers’ compensation cases today are paid under the post-July 1, 1986 rules. It is also important to note this does not affect the minimum benefit amount, which is the same for all claimants regardless of when their injury occurred.
In 2023-24, the minimum benefit amount was $567.00. Applying the 1.037 percent cost of living increase for 2024-25, that brings the minimum benefit amount up to $588.00. as of July 1, 2024. The maximum benefit for pre-July 1, 1986 claimants will go from $1,133.00 to $1,175.00 on July 1, 2024. Similarly, the maximum benefit for post-July, 1986 claimants will increase from $1,700.00 to $1,763.00.
Has Your Employer’s Insurance Company Notified You Yet?
Most workers’ compensation claims in Vermont are handled by insurance companies paid by the employer. The insurer is responsible for managing and administering payments as required by state law. As part of their legal obligations, the insurance company must send you aVermont Department of Labor Form 28, which is the formal Notice of Change in Compensation Rate for work-related injuries that occurred after July 1, 1986. This Form must tell you:
- Your current workers’ compensation disability rate as of June 30, 2024, not including any dependent benefits;
- Your new workers’ compensation disability rate as of July 1, 2024, i.e., your June 30, 2024 rate multiplied by 1.037;
- Any dependent benefits you are entitled to ($20 per dependent if you are on TTD or TPD benefits);
- Your total compensation rate as of July 1, 2024, including both the cost of living increase and any applicable dependent benefits.
If you have not yet received a Form 28 meeting this description from your employer or its workers’ compensation insurance carrier, you should call the Vermont Department of Labor right away at (808) 828-2286. And if you have questions about whether you are entitled to the cost of living increase–or your rate is not increased after July 1, 2024–call theVermont workers’ compensation lawyers at Larson & Gallivan Law at 802-327-8458 to schedule a consultation.
