A work-related injury can have a catastrophic effect on you. While you recover, you may incur medical expenses, lose income, and watch your usual bills pile up unpaid. This can be stressful, making your recovery longer and more painful. Fortunately, Mississippi employers must carry workers’ compensation insurance, which can alleviate some of these problems. Understanding the types of workers’ compensation benefits available to you and what those benefits will cover is essential to ensuring you receive all you are entitled to under the law. If your employer does not have coverage, is interfering with your ability to receive the benefits you are entitled to, or there are other issues with your claim, an experienced workers’ compensation attorney with Lott Law may be able to assist you. Call (228) 215-2787 to schedule a consultation and learn more about your legal rights and options to get the benefits the law provides.
Which Mississippi Employers Must Have Workers’ Compensation Insurance?
The Mississippi Workers’ Compensation Commission indicates that all Mississippi employers with five or more regularly employed employees must have workers’ compensation insurance, except:
- Domestic and farm labor
- Non-profits
- Federal employers and certain transportation or maritime employment that is covered by federal workers’ compensation laws
- Independent contractors (though special protections apply to subcontractor employees)
Most people working in Mississippi will be eligible for workers’ compensation. However, if an injured worker has been told their employer does not have to have workers’ compensation insurance and the worker believes that is not true, they may want to consult with an attorney to confirm whether their employer is exempt.
Two Main Categories of Workers’ Compensation Benefits
Many people discuss the specific benefits they may get from workers’ compensation, but it is important to first understand that there are two main categories of workers’ compensation benefits: temporary and permanent. The category from which an individual will receive benefits depends on the type and severity of their injury. The category may change as they continue treatment, based on their response to treatment.
Temporary Workers’ Compensation Benefits
Temporary benefits support the injured worker during their recovery. Within the temporary benefits category, there is temporary total disability (TTD), which is what the worker will receive if they cannot perform any work duties at all. There is also temporary partial disability (TPD), which the worker receives if they can return to work but in a limited capacity or lower pay than they received before the injury. An injured worker may receive TTD benefits initially and TPD benefits later if they cannot work but can later return to work. The time limit for TTD and TPD benefits varies based on the nature of the injury and disability, but cannot exceed 450 weeks (approximately eight and a half years).
Permanent Workers’ Compensation Benefits
Permanent workers’ compensation benefits are paid when the individual’s injury causes a lasting impairment or disability. Permanent total disability (PTD) is paid when the injury results in a total and permanent inability to work in any capacity and is limited to 450 weeks. Permanent partial disability (PPD) is paid when there is permanent damage, but it does not prevent the worker from working. This includes injuries such as the loss of a limb or reduced function of a body part. PPD is often awarded based on the degree of impairment based on a medical evaluation, and may be paid as a lump sum or as weekly payments. Both PTD and PPD can be paid for a maximum of 450 weeks.
Types of Workers’ Compensation Benefits
Within the broader categories of temporary and permanent workers’ compensation benefits, there are specific benefits that injured workers may receive. These benefits are determined by the nature and severity of the injury, as well as its impact on the individual’s daily life and ability to work.
Medical Benefits
Medical benefits cover treatment costs for a compensable injury. These benefits pay for all hospital and doctor services related to the injury, as well as nursing services, physical therapy, medication, and any medical equipment the individual may require. Mileage reimbursement for driving to the medical facilities for treatment is also included in medical workers’ compensation benefits.
Unless it is an emergency, the employer must authorize treatment. However, the employee selects the treating physician of their choice, and benefits are paid for up to 450 weeks or until the individual reaches maximum medical improvement (MMI). MMI is the point at which, even if the individual is not fully healed, continued treatment will not improve their condition.
Lost Wage Benefits
Lost wage benefits are meant to provide some of the individual’s lost income when they are unable to work, or only able to work in a limited capacity, after their injury. These benefits apply as both temporary and permanent benefits. Individuals will receive TTD if they are entirely unable to work. They will receive TPD if they can do limited work and have seen a decrease in earnings. Wage loss benefits are paid until they have reached MMI and can return to work in some capacity. Permanent lost wage benefits for a partial impairment are determined by a schedule that provides the statutory maximums for both the number of weeks and amount paid. Benefits are calculated as a loss of wage-earning capacity for a whole-body impairment.
For temporary and permanent total disability benefits, the amount received is 66 2/3 % of the worker’s average weekly wage (AWW) before the injury. For temporary or permanent partial disability benefits, the amount received is 66 ⅔% of the difference between the worker’s pre-injury AWW and their current earning capacity in the same or similar employment. For example, if the worker earned $1,000 per week before the injury and now makes $600 per week after the injury, they would receive 66 ⅔% of the $400 difference between the two.
Death Benefits
In the unfortunate case that the worker dies as a result of their workplace injury, Mississippi workers’ compensation benefits include death benefits for the worker’s surviving dependents. These benefits include a percentage of the deceased employee’s wages, paid out for up to 450 weeks. The family may also receive up to $5,000 for funeral expenses. A one-time immediate payment may also be made to the worker’s surviving spouse, in addition to the other death benefits.
Additional Potential Benefits
Medical and lost wage benefits apply to almost all workers’ compensation cases in Mississippi, while death benefits apply to cases where the worker has died. Additional potential workers’ compensation benefits may only apply if the employer and/or their workers’ compensation insurance carrier have agreed to provide them. Even then, these benefits may only apply in some instances based on the circumstances.
One of these benefits is vocational rehabilitation services, which assist workers in returning to work after an injury when they cannot return to work for their previous employer. This benefit may include career counseling, job training, and assistance in finding new employment. Equipment injury benefits may apply in cases where the injury was caused by defective equipment, while still allowing the worker to file a third-party lawsuit. Finally, some cases may result in settlements. Settlements tend to occur most often in cases with a permanent partial or total disability.
What Injuries Are Not Covered By Workers’ Compensation?
Workers’ compensation benefits cover most work-related injuries. The key is that those injuries are related to the individual’s work. In other words, the injury occurs within the scope of the person’s employment. This means there may be injuries that occur in the workplace, but because they do not happen within the scope of employment, they are not considered work-related and therefore, are not covered by workers’ compensation.
Injuries that are unlikely to be covered by workers’ compensation include:
- Minor injuries: Minor injuries that do not require medical treatment by a professional, such as minor lacerations, scratches, scrapes, or bruises, do not receive any workers’ compensation benefits because they do not interfere with the worker’s employment or require treatment.
- Intoxication: If the worker is intoxicated by alcohol or drugs when the accident occurs, workers’ compensation will not cover the injury. This can include prescription medications, forcing workers to prove that their prescription medication did not contribute to the injury.
- Refusal to Use Safety Equipment: Willful refusal to wear the appropriate, required safety equipment can result in a workers’ compensation claim being denied. This does not include cases where the worker is not aware of the necessary safety equipment or where the safety equipment is not made available.
- Unreported Injuries: Unreported injuries will not receive workers’ compensation benefits. This is why it is often recommended that workers report even minor injuries. If that seemingly minor injury becomes more severe later, the paper trail exists to file a claim. MS Code § 71-3-35 (2024) provides that employees must notify their employer of injuries within 30 days of the accident and claims will be barred if no compensation has been paid and no application for claims has been made within two years of the accident.
- Injuries During the Work Commute: A worker’s drive to and from work and any injuries that may occur are not covered by workers’ compensation. However, injuries sustained while driving or traveling as part of the job may be covered, depending on the specific circumstances.
- Recreational Activities: Company events such as a company picnic, family day, sponsored happy hour, networking event, or others may not be covered unless they take place during work hours, attendance is mandatory, the event occurs on company property, or the employer benefits in some way from the worker’s presence. Workers injured during events like these may need to consult a Mississippi workers’ compensation attorney at Lott Law to determine if their injury may be covered.
- Fights: Employees injured during a fight with another employee, vendor, customer, or other person will not be compensated by workers’ compensation. This does not apply if the worker was not involved in the fight but was injured by other employees fighting.
- Horseplay: Horseplay is typically not covered by workers’ compensation benefits. They may be covered if the injured worker was an innocent bystander or coerced into horseplay. The worker’s claim may be covered if the horseplay is an accepted part of the job, such as during downtime between tasks.
- Illegal Activities: If the worker engaged in any illegal activities when injured, their claim will be denied.
- Intentional Acts: Injuries intentionally inflicted by another employee, the employer, or the employee themselves may not be covered by workers’ compensation benefits.
Do I Have to Pay Taxes on Benefits?
Mississippi workers pay both federal and state income tax on their earned wages. Workers’ compensation benefits are not considered income or earned wages, so they are not subject to either federal or state tax. Whether they receive weekly payments or a lump sum, workers will not receive a W-2 for their benefits and do not need to report them as income.
However, workers do still need to pay taxes on any other taxable benefits or income they receive, such as Social Security disability, retirement income, or the income they received before the injury. Additionally, if the worker is reimbursed for a work injury-related medical expense that they previously deducted from their taxes, they may have to include that reimbursement as taxable income.
How Can a Mississippi Workers’ Compensation Attorney Assist You?
Workplace injuries can wreak havoc on your life, financially and otherwise. Workers’ compensation benefits are meant to reduce some of the financial burden of your injury without having to hold your employer or someone else responsible for it. Sometimes, your employer or their workers’ compensation insurance carrier will try to deny your claim, make a mistake with your benefits, or otherwise not pay your claim as they should. An experienced Mississippi workers’ compensation lawyer at Lott Law may be able to assist you in reversing a claim denial, correcting mistakes in your claim, negotiating a settlement, or filing a third-party lawsuit if another party was negligent and contributed to your injury. Call (228) 215-2787 to book a free consultation to review your legal rights and options.