What is Permanency in Minnesota Workers’ Compensation?

In Minnesota, workers compensation insurance covers wage loss benefits, medical benefits, rehabilitation benefits, and permanency. Permanency in workers comp is called "permanent partial disability," or "PPD."

Permanency is a percentage rating used to express the permanent loss of body function caused by a work-related injury. The amount of compensation is calculated by multiplying the percentage rating by a dollar amount.

The sections below cover what a permanency rating is, when it is given, how it is decided, and how to calculate the PPD benefit amount.

Workers Compensation Permanency Rating

Permanency is a percentage rating used to express permanent loss of body function caused by a work-related injury. The injured worker's treating doctor should assign a PPD rating. This should usually happen when the injured has reached maximum medical improvement ("MMI"). In workers compensation law, "MMI" means that the injured has recovered as much as he or she is likely to.

The treating doctor should then complete a form expressing that permanent impairment as a percentage. The insurance company should then use that percentage rating to calculate the amount of compensation due to the employee.

MN PPD Schedule

The Minnesota PPD Schedule is basically a big list of permanent impairments. It is similar to the American Medical Association's Guides to the Evaluation of Permanent Impairment. However, the Minnesota Department of Labor and Industry developed its own schedule for workers compensation claims. The schedule assigns each type of impairment a percentage rating.

In general, permanent impairments must be shown by some sort of testing. The ratings are often based on the body part, test findings, and the type of surgery performed. For orthopedic conditions, loss of range of motion is often rated.

Common PPD Ratings

The table below contains examples of commonly assigned permanency ratings. There are many other ratings that are not included in the table. Click the drop-down icon on the right to view some of the more common ratings by body part. Testing requirements are not included in the table below for the sake of simplicity, but they can be found in the Minnesota PPD Schedule. Ratings for loss of range of motion can be quite different for different people, depending on the measurements.

• Brain

  Mild word-finding difficulty - 10%

  Mild memory loss - 10%

  Situational emotional disturbance - 10%

  Mild vertigo - 10%

• Neck

  Pain and abnormal imaging - 10%

  Disc bulge and non-fusion surgery - 14%

  Stenosis and multi-level fusion - 23%

• Shoulders

  Full thickness rotator cuff tear and biceps tendon rupture - 6.94%

  Loss of range of motion - 8%

  Shoulder replacement - 36%

• Wrists

  Persistent carpal tunnel - 3%

• Low Back

  Pain and abnormal imaging - 10%

  Disc bulge and non-fusion surgery - 14%

  Stenosis and multi-level fusion - 23%

• Hips

  Hip replacement - 8%

  Loss of range of motion - 8%

• Knees

  Meniscectomy - 6%

  Knee replacement - 8%

  Loss of range of motion - 8%

How to Calculate MN PPD?

The amount of compensation is calculated by multiplying the percentage rating by the dollar amount in the table. The table can be found in the workers' compensation statute. The table changes from time to time, so the date of injury can change the amount of compensation. The table pictured here is for dates of injury after 10/1/2023.

Example:

• For a 21% PPD rating and a date of injury after 10/1/2023, the dollar amount in the table is $139,720.

• 21% of $139,720 (0.21 x 139,720) is $29,341.20.

• A worker injured after 10/1/2023 and assigned a 21% PPD rating is likely entitled to a PPD benefit of $29,341.20.

For a shortcut, the Workers Compensation Reinsurance Association has a PPD calculator on its website. To use the calculator, click on the link, then enter:

• Each percentage permanency rating;

• "Initial Weekly Indemnity" is the same as the weekly temporary total disability payments, or 66.67% of the average weekly wage; and

• The date of injury.

Then click "calculate." The calculator will return the total amount of permanency benefits that are owed. It will also return the number of weeks that permanency benefits should be paid.

What is a Lump Sum Payment for Permanent Impairment?

The insurance company should pay PPD benefits after any temporary total disability ends. They can pay it in weekly payments. The weekly installments will be 66.67% of the employee's average weekly wage.

The injured worker can instead have the permanency rating paid as a lump sum payment. If the injured worker elects a lump sum payment, then the total benefit amount will be reduced by 5%.

Final Thoughts on Permanent Partial Disability (Minnesota)

Permanent partial disability is an important workers compensation benefit. If you have been permanently injured on the job, it may be worthwhile to have an attorney review your permanency rating.

LawSmith PLLC is a Minnesota legal practice that represents employees in workers' compensation cases. A free consultation with an experienced workers compensation lawyer is available to Minnesota injured workers on request.

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