Quick answer: In Arizona, if you can’t work at all because of a work injury, temporary total disability benefits generally pay two-thirds (66⅔%) of your average monthly wage before the injury, up to a maximum set each year by the Industrial Commission of Arizona (ICA). If you can work but earn less because of your injury, temporary partial disability pays two-thirds of the difference. Medical treatment for the injury is covered separately. The first seven days are generally unpaid unless your disability lasts two weeks or more.
When you’re hurt at work, one of the first things you worry about is the paycheck. Workers’ comp doesn’t replace your full pay, and the details of how it’s calculated can be confusing. Here’s how it generally works in Arizona.
Two Different Kinds of Benefits
Workers’ comp isn’t one payment. It’s several kinds of benefits that cover different needs:
- Medical benefits. Treatment for your work injury, such as doctor visits, therapy, medication, and surgery, when related to an accepted claim.
- Temporary disability benefits. Wage replacement while you recover and can’t work, or can only work in a limited way.
- Permanent disability benefits. Compensation if your injury leaves you with a lasting impairment or reduced ability to earn.
- Death benefits. Benefits for dependents when a work injury is fatal.
This post focuses on the lost-wage benefits most people mean when they ask, “How much will I be paid?”
Temporary Total Disability (TTD)
If your doctor says you can’t work at all while you recover, you may receive temporary total disability benefits. In Arizona, TTD generally equals 66⅔% of your average monthly wage before the injury, subject to a yearly maximum set by the ICA. If you earned more than the cap, your benefit is limited by that cap rather than by your actual wages.
TTD generally continues for as long as you’re temporarily unable to work, which typically means until you’ve recovered, you’re released to work, or your condition reaches maximum medical improvement. There is no fixed number of weeks.
Temporary Partial Disability (TPD)
If you’re released to light or limited duty but earn less than before, you may be eligible for temporary partial disability. TPD generally pays two-thirds of the difference between what you earned before the injury and what you earn now.
This matters if your employer cuts your hours, moves you to a lower-paying role, or can’t offer modified work. It’s worth tracking your earnings carefully after you return.
How Is Your Average Monthly Wage Calculated?
Your average monthly wage (AMW) is the basis for your benefits, so getting it right matters. It’s generally based on what you earned in the period before your injury. Details can get complicated if you:
- Worked overtime or irregular hours
- Had more than one job
- Were seasonal, new on the job, or paid in cash
- Received tips, bonuses, or other compensation
Mistakes in AMW are common and can shortchange you for the entire claim. Keep pay stubs and records of all income and check the number the insurer uses.
The Waiting Period
Arizona generally doesn’t pay income benefits for the first seven days after an injury. If your disability lasts two weeks or more, benefits are generally computed from the day of the disabling injury, so you’re not left permanently without pay for that first week.
How and When Are You Paid?
Temporary total disability benefits are generally paid every two weeks. Temporary partial disability payments typically follow a different schedule. If checks are late, wrong, or stop without explanation, don’t assume it’s a mistake you have to live with. Ask for a written explanation.
What Can Change or End Your Benefits?
- You’re released to return to work by your treating doctor
- Your condition reaches maximum medical improvement (you’ve recovered as much as you’re expected to)
- The insurer disputes your claim or stops paying
- You return to work at a different wage, which can shift you from TTD to TPD
- An insurer-requested exam, like an IME, produces a report that conflicts with your own doctor
An end to temporary benefits doesn’t always end your claim. If you’re left with lasting limitations, you may be eligible for permanent disability benefits.
What About When You Can’t Go Back to Your Old Job?
Some injuries change what kind of work you can do. If your limitations are permanent, other benefits may come into play, including permanent disability benefits through workers’ comp and, in some cases, Social Security Disability. These programs interact, and the combined benefits can be affected by an offset rule. We cover that in our post on collecting workers’ comp and SSDI at the same time.
Frequently Asked Questions
Do I get 100% of my paycheck? No. Workers’ comp wage benefits are generally two-thirds of your average monthly wage, not your full pay, and they’re generally not taxed as income.
What if I’m paid in cash or off the books? It can complicate your claim, but it doesn’t automatically disqualify you. Records like text messages, bank deposits, and witness statements can help establish what you earned.
Do I get paid if my employer won’t give me light duty? Possibly. If you can’t work because of the injury and your employer can’t accommodate your restrictions, you may be entitled to benefits. Document what restrictions you were given and what your employer said.
What if my claim is delayed or denied? You may have to go without wage benefits while it’s sorted out, which is why it matters to act quickly if a claim is denied. There are time limits to request a hearing.
Can my benefits be reduced? They can change if you return to work, are released by your doctor, or if the insurer disputes your condition. If a reduction doesn’t look right, it’s worth getting a second opinion on the math.
Know Your Numbers
A work injury is stressful enough without wondering whether your checks are right. If you want to understand what you should be receiving, or you think your average monthly wage was calculated incorrectly, it’s worth having the numbers reviewed.
Contact us to talk through your situation, or learn more about our Workers’ Compensation services.
This blog post is for informational purposes only and does not constitute legal advice. Reading this content or contacting Taylor & Associates does not create an attorney-client relationship. Every case is different — consult with an attorney about your specific situation.
