Work injuries are more than an inconvenience for most; they can leave you with lasting disabilities that interfere with your ability to enjoy life and provide for yourself and your family.
Thankfully, Nevada has a workers’ compensation program designed to reimburse you for your decreased ability to work — regardless of how minor your disability may seem.
The Nevada workers’ compensation system places limits on the money awarded to you. So, it’s important to understand the amount of money you can get with the help of this WC permanent partial disability calculator as you plan your income around these payments.
What Is a PPD Award?
Every employer is legally obligated, with few exceptions, to provide workers’ compensation insurance to their employees. This coverage is in place to protect the company in case an employee is injured or becomes ill while working. It also provides coverage for the employee in case the employer cannot cover their injuries without insurance.
Permanent partial disability (PPD) is the most frequently filed workers’ compensation claim, as most injuries that occur in the workplace do not lead to permanent total impairment.
PPD benefits are intended to sustain those who have been impaired by their injuries and can no longer carry out their job responsibilities to their fullest extent.
The amount of money awarded to an injured worker varies based on the extent of the injury or illness. If a doctor confirms that you have a ratable injury, or an injury that can be given a number rating based on the severity, you may be eligible for PPD awards according to Nevada’s state regulations.
PPD Under Nevada Law
In Nevada, you have 30 days to have a doctor rate your disability and provide a report with verification of your disability. Unlike federally administered funds like Social Security, PPD benefits are distributed by the state and are subject to local guidelines.
Once your physician declares that no further medical treatments will improve your condition, you are considered ratable under the guidelines set by the American Medical Association. Thus, a doctor must determine that you have reached “maximum medical improvement” (MMI), meaning your condition is unlikely to improve further with treatment.
The doctor will then assess your extent of permanent impairment using a standardized system.
How to Calculate Permanent Partial Disability
In Nevada, a rating doctor assesses your work-related injury. They examine each affected body part and assign an impairment level, resulting in an overall disability percentage. This percentage helps determine your compensation for the permanent loss of earning capacity.
Your impairment level, or overall disability percentage, along with your wage and age at the time of the injury, will be used to determine your permanent partial disability compensation. (The percentage isn’t based on your ability to work, but it determines the length of a retraining program if you are eligible for vocational rehabilitation services.) Sometimes this means that two people with the same injury could end up with different settlement amounts.
Example of How Nevada PPD is Calculated
As a rule of thumb, each impairment percentage will merit an award of 0.6% of your monthly wage. So, for example, if you are deemed 15% impaired and you earn $3,000 per month as your average monthly wage, the formula would be as follows: (0.006) x 3,000 x 15 = $270. Therefore, you would receive $270 per month.
Distributions of your PPD award would begin when temporary total disability (TTD) benefits end. You will continue to receive them for five years or until you turn 70.
This calculation works a little differently for people who are considered to be over 30% impaired. You can learn how the math works on the worksheets provided on the State of Nevada Department of Business & Industry website.
If you’d like an estimate of what your calculation would be, you can use the easy Nevada PPD calculator on this page.
Scheduled Versus Unscheduled PPD Losses
Some states distribute benefits according to a schedule of losses, which pre-determines the number of compensable weeks available to a person according to their injury. A typical week of compensation is worth two-thirds of the worker’s average weekly wage (AWW) up to a certain point.
Nevada is not a state that uses a schedule of losses for injuries. Nevada primarily focuses on the degree of permanent impairment as assessed by a medical professional. This impairment rating is then used to determine the amount of PPD benefits.
Additionally, some states stray from their schedule for unlisted, incalculable work-related injuries, such as brain, lung, or back injuries. For these, there are a few methods for calculating benefits:
Impairment-Based Approach
Most states take this approach in calculating PPD benefits. Your level of impairment will be the determining factor in deciding how many weeks’ worth of benefits you receive based on your wages before your injury.
The impairment-based approach in workers’ compensation focuses on the physical limitations caused by a work injury. A doctor examines the injured worker and assigns an impairment rating. This rating reflects the extent of the permanent physical limitations caused by the injury. It’s typically expressed as a percentage.
The impairment rating is then used to calculate the amount of permanent partial disability benefits.
Some states with an impairment-based system often have a formula that converts the impairment percentage into a specific number of weeks of benefits. For example, a state might award 400 weeks of benefits for a 100% whole-person impairment. If the worker receives a 20% impairment rating, they would be eligible for 80 weeks of benefits.
Key characteristics of the Impairment-Based Approach include the focus on physical limitations, objective measurement system, and less emphasis on earning capacity.
Wage Loss Approach
The wage loss approach to determining Permanent Partial Disability (PPD) benefits in workers’ compensation focuses on the actual or potential reduction in a worker’s earning capacity due to their work-related injury.
Only a fifth of the states use this approach because it is difficult to determine whether the injury caused a loss of wages. It is calculated using the actual wages that were lost as a result of your work-related injury.
There must be an assessment of actual and potential earning capacity. If the injured worker returns to work but earns less than they did before the injury, the difference in wages can be used to calculate PPD benefits.
If the worker cannot return to their previous job due to the injury, the focus shifts to their ability to earn a comparable wage in a different occupation. Factors considered include:
- Age
- Education
- Work experience
- Job market conditions
- Medical restrictions
The amount of PPD benefits is typically based on a percentage of the wage loss, subject to statutory limits.
Key points to focus on with the Wage-Loss Approach include the primary concern of earning capacity and the individualized approach with this system.
Loss-of-Earning-Capacity Approach
The loss-of-earning-capacity approach in workers’ compensation focuses on how much the worker’s ability to earn money has been reduced due to the work-related injury. This method of calculation attempts to predict the future about an injured worker’s ability to earn money moving forward. It takes the individual’s age, training, education, and work history into consideration.
It’s not just about the wages lost while the worker was unable to work. It considers the worker’s potential to earn income in the future, given their limitations caused by the injury. Factors considered include:
- Type of Injury: The severity and nature of the injury play a significant role.
- Worker’s Age, Education, and Skills: These factors determine the worker’s potential to retrain or find alternative employment.
- Labor Market Conditions: The availability of jobs that the worker can perform with their limitations is taken into account.
In this system, it’s important to have plenty of evidence supporting your PPD claim, including medical opinions, vocational rehabilitation experts, and economic data.
Key points about the Loss-of-Earning-Capacity Approach include the ability to conduct an individualized assessment and the focus beyond medical impairment to consider the broader economic impact of the injury on the worker’s life.
How Can I Get Paid PPD Benefits in Nevada?
Injured workers can choose how their PPD benefits are distributed. They can either receive all the money upfront in a lump sum or smaller installments over time until the age of 70.
Bear in mind that the state of Nevada reduces lump sums to reflect current values. That means, if you are more than 25% disabled, you may only receive 25% of your benefits as a lump sum. Everything over that will be distributed as installments.
How to Obtain Maximum Workers’ Compensation PPD Benefits
Of all the ways that are used to calculate PPD benefits from state to state, no single method is superior to another. No matter how you approach the calculations on your own, flaws, struggles, and consequences can ensue.
The best way to minimize headaches and maximize your benefits is to hire an experienced workers’ compensation attorney who understands Nevada laws. They can help you gather evidence to support your claim, obtain impairment ratings, and get the maximum PPD benefit possible.
Our legal team at Shook & Stone is well-versed in Nevada’s WC PPD guidelines. We’re here to reduce your suffering and stress at a difficult time and provide the best outcome possible. Call us or fill out the form for a free consultation.
DIRECTIONS 
