If you have been injured at work in Illinois and are approaching the end of your medical treatment, you have probably heard the term “permanent partial disability” or “PPD.” Many injured workers assume that once they finish treatment and return to work, their workers’ compensation case is over. In reality, the most important part of the case often comes at the end, when the parties evaluate what permanent effects your injury has left behind and what compensation you are owed for those effects. The value of your case at this stage typically turns on which category of permanency applies and what percentage of loss of use, person-as-a-whole impairment, wage loss, or disfigurement the evidence supports. Here is what every injured worker in Illinois should understand about how PPD works and how it affects the value of your claim.
What Permanent Partial Disability Means
Permanent partial disability is the legal term for a lasting impairment that leaves you with permanent restrictions, weakness, pain, loss of motion, or other measurable consequences from your work injury but does not necessarily prevent you from working. Many injured workers who collect PPD return to their pre-injury jobs, sometimes at full duty, and the law still recognizes that they have suffered a permanent loss. Under the Illinois Workers’ Compensation Act, you are entitled to compensation for these permanent effects even if you are working again. Visible scarring is treated separately under Section 8(c) as serious and permanent disfigurement, and a worker generally cannot collect both disfigurement and loss-of-use compensation for the same body part.
PPD benefits are separate from the temporary total disability (TTD) benefits paid while you are off work and from the medical benefits that cover your treatment. Once your authorized treating physician determines that you have reached maximum medical improvement, sometimes called MMI, the focus of your case shifts toward measuring the permanency of your injury. PPD is the dollar value of that permanency.
The Main Categories of PPD Awards
Illinois law provides several different ways to compensate an injured worker for permanent disability. The Illinois Workers’ Compensation Commission recognizes four categories of PPD benefits: the schedule of injuries under Section 8(e), person-as-a-whole awards under Section 8(d)(2), wage differential benefits under Section 8(d)(1), and disfigurement under Section 8(c). The category that applies to your case depends on the body part injured, the nature of your restrictions, whether you have a wage loss, and whether the injury caused visible scarring. The three most commonly used valuation categories are described below.
Schedule of Injuries Under Section 8(e)
For injuries to specific body parts — such as a hand, arm, leg, foot, eye, ear, or finger — Section 8(e) of the Act assigns a fixed number of weeks of compensation that represent the total loss of that body part. For example, the loss of an arm is valued at 253 weeks, the loss of a hand at 205 weeks, and the loss of a leg at 215 weeks. If you have a partial loss of use rather than a total loss, your compensation is calculated as a percentage of those weeks.
In practical terms, an injury that results in a 20 percent loss of use of the hand would entitle you to 20 percent of 205 weeks, or 41 weeks of PPD benefits. The weekly rate is set by statute at 60 percent of your average weekly wage, subject to maximum and minimum limits set by the Illinois Workers’ Compensation Commission. The PPD maximum rate is generally updated annually on or about January 15, and the rate that applies to your case is the rate in effect on the date of injury.
Person-as-a-Whole Awards Under Section 8(d)(2)
When the injury affects a body part not listed on the schedule — such as the spine, the head, or internal organs — compensation is calculated as a percentage of the “person as a whole.” Section 8(d)(2) values the entire person at 500 weeks. A 10 percent person-as-a-whole rating, for example, equals 50 weeks of PPD benefits at the statutory rate.
Person-as-a-whole awards are common in back, neck, and shoulder cases. They also apply to injuries that have a systemic effect, such as cardiac conditions, traumatic brain injuries, or psychological injuries that meet the legal standard.
Wage Differential Benefits Under Section 8(d)(1)
If your injury permanently prevents you from returning to your regular job and you must accept lower-paying work, you may be entitled to wage differential benefits instead of a percentage rating. Wage differential benefits are paid at two-thirds of the difference between what you used to earn and what you are able to earn in the new employment. For accidental injuries occurring on or after September 1, 2011, the duration of wage differential benefits is the longer of five years from the date the award becomes final or the date the worker turns 67. Because wage differential awards can be significantly more valuable than a percentage rating, this option deserves careful evaluation in any case involving permanent restrictions and a wage loss. Wage differential is generally an alternative to, not a supplement to, a percentage permanency award for the same injury.
How a PPD Rating Is Determined
Section 8.1b of the Illinois Workers’ Compensation Act, which applies to accidental injuries occurring on or after September 1, 2011, provides that arbitrators consider five factors when determining the level of permanent partial disability:
The reported level of impairment based on the AMA Guides to the Evaluation of Permanent Impairment, the occupation of the injured employee, the age of the injured employee at the time of the injury, the future earning capacity of the injured employee, and evidence of disability corroborated by the treating medical records. No single factor is the sole determinant. The arbitrator weighs all five factors together based on the evidence in the specific case.
In practice, this means the percentage of disability is more than a number from a doctor’s report. The same surgical outcome could result in a higher percentage for a 55-year-old laborer than for a 25-year-old office worker, because the impact on the older worker’s occupation and future earning capacity is different. When an arbitrator issues a written decision, the statute requires the arbitrator to explain the relevance and weight of any factors considered in addition to the impairment level — which gives experienced attorneys an important framework for negotiating settlements as well.
Why an AMA Impairment Rating Is Not the Whole Story
Insurance carriers often emphasize the AMA impairment rating because, in many cases, it produces a lower number than the other Section 8.1b factors would suggest. It is important to understand that the AMA rating is only one of five factors the arbitrator must consider. A 2 percent AMA impairment rating does not automatically mean a 2 percent PPD award.
Illinois courts have consistently confirmed that arbitrators are not bound by AMA ratings and may award substantially higher percentages based on the worker’s age, occupation, future earning capacity, and the evidence of disability in the medical records. If the insurance company is offering a settlement based purely on an AMA rating, that offer is almost certainly understated.
How PPD Settlements Are Calculated
Once a PPD rating is established, the dollar value of the case is calculated by multiplying the number of weeks awarded by your PPD weekly rate. The PPD weekly rate is generally 60 percent of your average weekly wage, capped at the statutory maximum in effect on the date of injury.
For example, if your average weekly wage was $1,200 at the time of injury, your PPD rate would be $720 per week. A 25 percent loss of use of the arm would yield 25 percent of 253 weeks, or roughly 63.25 weeks, multiplied by $720 — a PPD value of about $45,540 before any disputes about credit, attorney’s fees, or open medical rights are factored in.
Settlement value, of course, is not simply a math problem. Many cases settle for amounts that reflect compromises on disputed issues — the extent of disability, the need for future medical care, the existence of a wage loss, and the strength of the evidence. An attorney who handles these cases day in and day out understands how these factors interact and where the firm-versus-soft numbers actually fall.
Practical Takeaways for Injured Workers
If you are at or near the end of your treatment, the value of your case will likely turn on how PPD is measured and presented. Do not assume that the first number the insurance adjuster offers reflects the full value of your claim. Make sure your treating physician’s records contain a clear narrative of your permanent restrictions, your ongoing symptoms, and how the injury affects your ability to perform your job. An AMA impairment rating is not legally required to obtain a PPD award in Illinois, but in many cases obtaining one is strategically useful — that is a decision worth discussing with an attorney based on the specifics of your case. And before signing a settlement contract, understand which category of PPD applies to your case and whether wage differential or disfigurement benefits may be more appropriate than a percentage loss-of-use rating.
A workers’ compensation case can take many months to reach this stage, and the choices made at the end have lasting consequences. Before you sign anything, consider having an attorney evaluate your case and the proposed terms. Learn more about how our workers’ compensation attorneys protect injured workers throughout the claim process. For cases involving permanent restrictions and a wage loss, also review our discussion of vocational rehabilitation and permanent wage loss benefits, which often work hand-in-hand with PPD.
If you have been injured at work and have questions about your permanent partial disability rating or the value of your settlement, the attorneys at The Law Offices of Millon & Peskin, Ltd. are here to help. We represent injured workers throughout the Chicagoland area, including DuPage, Cook, Will, Kane, and Lake counties. Contact us today at 630-449-3884 for a free consultation to discuss your case.