Understanding Permanent Disability Benefits in Arizona's Workers' Compensation System--Scheduled vs. Unscheduled

When a work-related injury results in lasting impairment, even after medical treatment, the focus of Arizona's workers' compensation system shifts to permanent disability benefits. These benefits aim to compensate injured workers for the long-term impact of their injuries on their ability to earn a living.

Permanent disability benefits in Arizona fall into two primary categories: scheduled and unscheduled. Understanding the distinctions between these types is crucial for injured workers to navigate the system effectively.

Scheduled Permanent Impairment

Scheduled injuries involve impairments to specific body parts listed in the Arizona Revised Statutes (§ 23-1044(B)). These include:

• Loss of or loss of use of fingers, thumbs, hands, arms, toes, feet, legs

• Loss of sight or hearing

• Facial disfigurement

• Loss of teeth

  
  

Scheduled impairments are presumed to adversely affect a worker's earning capacity. Benefits are calculated based on a fixed schedule that specifies the number of months of compensation payable for each type of impairment. The amount of monthly compensation is typically a percentage of the worker's average monthly wage at the time of the injury.

Key Features of Scheduled Benefits:

• Exclusivity: The scheduled benefit is the exclusive remedy for the specific impairment listed.

• Predetermined Duration: Benefits are paid for a fixed period outlined in the schedule, regardless of the actual impact on earning capacity.

• Administrative Convenience: Scheduled awards are issued by the insurance carrier, streamlining the process and minimizing disputes.

Unscheduled Permanent Impairment

Unscheduled impairments encompass all impairments not specifically listed in the schedule. This includes:

• Injuries to the back, spine, neck, shoulder, hip

• Occupational diseases

• Multiple impairments involving different body parts

• Mental health conditions stemming from work-related injuries

For unscheduled impairments, the Industrial Commission of Arizona (ICA) determines the amount of compensation payable. This determination is based on the extent to which the injury affects the worker's earning capacity.

Key Features of Unscheduled Benefits:

• Individualized Assessment: Unlike scheduled benefits, unscheduled benefits are not subject to a predetermined schedule.

• Loss of Earning Capacity: Compensation is based on the difference between the worker's pre-injury average monthly wage and their estimated post-injury earning capacity.

• Duration: Unscheduled benefits are not limited in duration and will continue until the worker's disability is removed or until death of the injured worker.

  
  

Factors Considered for Unscheduled Benefits

To determine the amount of compensation for unscheduled impairments, the ICA considers various factors, including:

• Nature and severity of the impairment (permanent work restrictions)

• Age

• Education

• Previous work experience

• Transferable skills

• Labor market conditions

Importance of Legal Counsel

Navigating the complexities of permanent disability benefits can be challenging for injured workers. Seeking legal counsel from an experienced workers' compensation attorney is highly recommended to protect your rights and ensure you receive the benefits you deserve.