Permanent disability (PD)

What permanent disability is

When an injured worker's condition stops improving (permanent and stationary, or maximum medical improvement) and some impairment remains, the worker is owed permanent disability indemnity. PD is expressed as a percentage. For injuries on or after January 1, 2013, it is rated from the physician's whole person impairment under the AMA Guides, Fifth Edition, with account taken of the employee's occupation and age (Labor Code section 4660.1). Apportionment can reduce the percentage the employer owes.

The rule and its deadlines

Once TD ends, the first PD payment is due within 14 days of the last TD payment, and the employer must keep paying its reasonable estimate of PD until the amount is determined and paid (Labor Code section 4650(b)). Payments then run every two weeks. Late payments carry the automatic 10 percent increase. Awards of PD for any one body region cannot exceed 100 percent over a lifetime, except for conclusively total cases (Labor Code section 4664(c)).

Why it matters to an applicant firm

PD is usually the largest piece of a WC settlement, and it is fought over in the QME or AME report: impairment method, apportionment, and the rating string. Firms watch for PD advances that never start after TD ends, and for ratings built on a report with gaps. The PD rating guide explains how a rating is built.