Cost of Living Adjustments In Wisconsin Worker’s Compensation

When filing a worker’s compensation claim in Wisconsin, one important factor that claimants should consider is the Cost of Living Adjustment (COLA). COLAs are designed to keep benefits fair over time by adjusting for inflation and rising living expenses. This adjustment helps injured workers maintain financial stability during their recovery. Let’s now explore how COLAs work in Wisconsin’s worker’s compensation system, the relevant statutes, and how they affect your benefits.

Under Wisconsin Worker’s Compensation law, COLAs play an important role in cases where an injured worker is receiving long-term or ongoing benefits. As the cost of living rises, the value of a fixed worker’s compensation benefit might not be sufficient to cover an injured worker’s future needs. The Wisconsin legislature recognizes this issue and allows for adjustments to be made, ensuring that the benefits keep pace with inflation.

According to Wis. Stat. § 102.44(1), individuals receiving permanent total disability (PTD) benefits are eligible for a COLA after they’ve been on worker’s compensation for a continuous period of time. This statute aims to protect injured workers who are unable to return to work and rely on these benefits as their primary source of income. The amount of the adjustment is tied to changes in the state’s average weekly wage (SAWW), which fluctuates yearly. Essentially, if the SAWW increases, so do the benefits received by workers eligible for a COLA.

One point to keep in mind is that not all recipients of worker’s compensation benefits are entitled to cost of living adjustments. For instance, temporary total disability (TTD) benefits and temporary partial disability (TPD) benefits do not typically see these adjustments. The primary focus is on those who are permanently unable to work or are significantly impacted long-term. This distinction can sometimes be confusing, which is why understanding your rights under Wis. Stat. § 102.44(1) is so important.

The timing and calculation of these adjustments are also vital. The Wisconsin Department of Workforce Development (DWD) reviews and announces any changes to the average weekly wage annually. For those eligible for COLA, the adjustment typically takes effect on July 1st of each year. While the state strives to keep benefits fair, this adjustment is not automatically applied to every case, and you might need assistance to ensure your benefits are accurately recalculated.

As experienced Wisconsin worker’s compensation attorneys, we know how these cost-of-living adjustments can make a significant difference in maintaining your financial security. Underestimating your COLA can result in lower-than-expected benefits, which can be challenging if you are unable to work due to your injury. If you’re dealing with a long-term disability claim, understanding and ensuring that your COLA is correctly applied can have a significant impact on your quality of life moving forward.

FAQs About Cost of Living Adjustments In Wisconsin Worker’s Compensation

What Exactly Is A Cost Of Living Adjustment (COLA) In Wisconsin Worker’s Compensation?

A Cost of Living Adjustment (COLA) is an increase in worker’s compensation benefits designed to keep up with inflation and the rising cost of living. COLA ensures that injured workers receiving long-term benefits do not lose purchasing power over time.

Are All Worker’s Compensation Claimants In Wisconsin Eligible For Colas?

No, not all claimants are eligible for COLAs. Only individuals receiving permanent total disability (PTD) benefits are entitled to this adjustment, as stated in Wis. Stat. § 102.44(1). Temporary disability benefits, such as temporary total disability (TTD) or temporary partial disability (TPD), do not receive COLAs. It’s important to check whether you qualify for this adjustment if you’re on a long-term disability claim.

How Is The COLA Amount Determined For Wisconsin Worker’s Compensation?

The COLA amount is based on changes in the state’s average weekly wage (SAWW), which is determined by the Wisconsin Department of Workforce Development. This department reviews the SAWW and adjusts benefits annually. If the SAWW increases, your worker’s compensation benefits will be adjusted to reflect this change. The intent is to ensure that your benefits continue to meet your financial needs as the cost of living rises.

What Should I Do If I Believe My COLA Has Not Been Properly Applied To My Worker’s Compensation Benefits?

If you suspect that your COLA has not been accurately calculated or applied, it’s crucial to seek legal assistance. The process can be complex, and any oversight might result in you receiving less than you’re entitled to. By working with an experienced worker’s compensation attorney, you can ensure that your benefits are correctly adjusted and that you receive the full amount owed to you, providing you with the support and guidance you need.

How Does A Cost Of Living Adjustment (COLA) Impact My Overall Worker’s Compensation Settlement In Wisconsin?

A COLA can significantly impact your overall worker’s compensation if you are receiving long-term benefits, particularly for permanent total disability (PTD). By ensuring your benefits adjust according to inflation and the state’s average weekly wage, you receive an amount that reflects the current cost of living. This means that over time, you’ll have a better chance of maintaining financial stability, even as expenses rise. However, it’s crucial to monitor these adjustments to ensure you receive the correct amount.

Can My Employer Or Their Insurance Company Dispute The Application Of A COLA To My Worker’s Compensation Benefits?

Yes, in some cases, employers or their insurance companies may dispute the application or calculation of a COLA. They might argue that the adjustment does not apply to your specific situation or that the amount is incorrectly calculated. This is why it’s vital to have a knowledgeable worker’s compensation attorney by your side who can advocate for your rights and ensure that your benefits are accurately adjusted according to Wisconsin statutes. They might also dispute the eligibility of the worker for COLA, which is another reason to have legal representation.

Contact Our Worker’s Compensation Attorney For You Free Consultation

If you or a loved one is dealing with a worker’s compensation claim and are searching for a knowledgeable “worker’s compensation attorney near me” to help you understand how Cost of Living Adjustments may affect your benefits, our team at Gillick, Wicht, Gillick & Graf is here to help. We know the ins and outs of Wisconsin Worker’s Compensation laws and can guide you through this process, ensuring your benefits keep up with the rising cost of living. Contact Gillick, Wicht, Gillick & Graf today at 414-257-2667 to receive a free consultation. With offices located in Milwaukee, we proudly represent injured workers throughout Wisconsin.