2018 Workers Compensation Newsletter - Third Quarter

In an otherwise compensable workers' compensation case, is an employer permitted to use salary continuation and can payments of it serve as a credit against TTD obligations?

It is ultimately within the discretion of the Workers’ Compensation Board of Indiana to deduct salary continuation payments from the employer’s liability.  However, case law suggests that salary continuation is permitted and the Board will credit salary continuation against workers’ compensation benefits to avoid double compensation to the employee.

Yes, an employer can use salary continuation and payments can serve as a credit against TTD obligations. However, there must not be any payments due and payable to the employee and the Board has discretion in deducting salary continuation payments from the employer’s liability. Please see memo here.