Employers' Guide To Workers' Compensation Insurance In Washington State Page 20

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Chapter 5
to receive medical treatment for conditions
The following are used to calculate gross
allowed on their claim and can file a future claim
monthly income:
if a new injury occurs.
ƒ
Gross wages earned before taxes, including
income from a second job.
In most structured settlements, the claim is closed.
ƒ
The worker is paid a set amount in periodic
Employer-provided medical, dental and
payments, which are spelled out in the agreement.
vision benefits.
ƒ
The reasonable value of room and board,
To be eligible, an injured worker must:
housing, fuel or similar considerations
ƒ
Be 50 years of age or older.
received from the employer as part of the
ƒ
Have an allowed workers’ compensation
employee’s income.
claim in Washington.
ƒ
Any bonus the worker received within the
ƒ
Wait at least 180 days after L&I or the self-
twelve months immediately preceding the
insured employer received the claim.
injury as a part of the contract of hire with
the employer of injury.
Employers may initiate structured settlement
ƒ
Tips reported by the employer for federal
discussions for an eligible worker’s claim by filing
income tax purposes.
an application with L&I. However, structured
ƒ
settlement is a voluntary program, and all parties
Normally worked overtime hours are included.
have to agree. L&I negotiates the amount to be
If your employee’s work pattern is determined to
paid and submits the agreement to the Board of
be exclusively seasonal, essentially part-time or
Industrial Insurance Appeals.
intermittent, his/her gross monthly income would
For more information or to initiate structured
be determined by averaging the total wages
settlement discussions, please visit
earned, including overtime pay and tips, from all
.
employment in any 12 successive calendar months
preceding the injury that most fairly represents
the employee’s employment pattern.
Gross Income
When calculating an employee’s benefits, L&I
will first establish the employee’s gross income
at the time of the injury.* L&I will issue a “wage
order” providing the employee and you with
the information that was used to calculate the
employee’s gross monthly income.
*If your employee has an occupational disease, gross
income is based on the date the employee’s condition
first required medical treatment or became disabling,
whichever came first.
16

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