How Is Workers’ Compensation Calculated?

Almost every employer in Kansas is legally required to carry workers’ compensation insurance to cover their employees. That means if you get injured on the job and you work for a company covered under workers’ compensation, you will be entitled to financial support for loss of income and medical benefits.  

“But how much will my workers’ compensation settlement be and how is workers’ compensation even calculated?” is a question we—here at Slape & Howard—often hear from injured workers in Wichita, Kansas, and other parts of the state. Every state, including Kansas, has unique guidelines for calculating workers’ compensation benefits. And our workers’ compensation attorneys will do their best to explain state-specific guidelines that insurance providers in Kansas use when calculating settlements.  

Compensation for Medical Expenses

The first category of expenses that you can get compensation for after a work-related injury or illness are medical expenses. Under KSA 44-510h, employees are entitled to compensation for all expenses that are “reasonably necessary to cure and relieve the employee from the effects of the injury.”  

Kansas law allows the employer to choose the authorized treating physician for the employee. In case an employee seeks treatment from a non-authorized medical provider, the employer’s insurance company is only liable for up to $800 of any medical bills that arise from that treatment.  

When an employee is not satisfied with the employer’s choice of the authorized treating physician, they have the right to request a change through the Director of Workers Compensation.  

• Note: In addition to providing compensation for hospitalization, surgery, medication, and other necessary medical expenses, workers’ compensation also includes mileage reimbursement, which covers trips to and from doctor’s appointments as long as the round trip is five miles or more. The current mileage reimbursement, which is effective from July 1, 2024, through June 30, 2025, is $0.67 per mile, according to the Kansas Department of Labor.  

Compensation for Loss of Income

Under Kansas law, injured workers are not entitled to loss of income benefits for the first week they are off work unless their disability lasts for three weeks in a row. If it does, compensation for income lost during the first week is paid retroactively.  

For each employee, loss of income benefits are calculated at a rate of two-thirds (66 2/3%) of their gross average weekly wage. However, the amount cannot exceed the so-called “wage caps,” or maximum benefit limits, which are subject to change every year. The current wage cap, which is effective from July 1, 2024, through June 30, 2025, is $835 per week.  

In other words, the loss of income compensation you may be entitled to in Kansas is the lesser of (a) two-thirds of your gross average weekly wage or (b) the wage cap in effect at the date you get injured.  

• Note: The amount you receive won’t be affected by future annual wage cap increases. So, for example, if you were injured on August 1, 2024, when the maximum benefits limit was $835, you will continue to receive the same amount per week even after the wage cap changes on July 1st, 2025.  

How the Category of Disability Affects Workers’ Comp Amounts in Kansas

If your injury or illness qualifies for workers’ compensation, you will receive loss of income benefits until you are cleared by the authorized treating doctor to return to work. According to the Kansas Department of Labor, regardless of your circumstances, the total amount of loss of income benefits cannot exceed:  

• $225,000 if you have temporary disability or permanent partial disability;  

• $100,000 if you have permanent partial disability based on functional impairment; or 

• $400,000 if you have permanent total disability.  

But what do those categories of disability actually mean? Here’s a quick overview:  

• Temporary total disability is when a worker cannot engage in any type of gainful employment due to the injury but is expected to regain their ability to work in the future. For this disability, loss of income benefits are discontinued when the worker is released to return to work or if the total amount of benefits reaches $225,000, whatever happens sooner.  

• Permanent total disability is when a worker cannot and will not be able to engage in any type of gainful employment due to the injury for the rest of their life. For this disability, the total amount of benefits cannot exceed $400,000.  

• Temporary partial disability is when a worker returns to work at a wage lower than their income level before the work-related injury or illness. For this disability, loss of income benefits are discontinued when the worker is released to return to work or if the total amount of benefits reaches $225,000, whatever happens sooner.  

• Permanent partial disability is broken down into two subtypes: scheduled and general. Scheduled disability is when a worker suffers complete or partial loss of use of a body part, while general disability is when their disability is not covered by any schedule outlined in KSA 44-510d. For this disability, the total amount of benefits cannot exceed $225,000 or $100,000 if the worker’s disability is based on functional impairment.  

In the case of a worker’s loss of life at work or due to work-related conditions, dependents or heirs can receive up to $10,000 in burial expenses and $2,500 to pay for the services of a court-appointed conservator.  

Want to Know How Much Your Workers’ Compensation Claim Is Worth? We Can Help

Everyone’s situation is unique, which is why workers’ compensation settlements may vary widely from one worker to another. At Slape & Howard, we understand what formulas insurance providers use when calculating workers’ compensation claims and can leverage our knowledge to determine how much your case is worth. Curious? Then get your free consultation now by contacting our office.