Wage Loss

Wage loss ratings are available under Part E of the EEOICPA program for employees which have experienced lost wages as a result of a covered illness. Compensation is payable for the years an employee could have worked prior to regular Social Security Administration(SSA) retirement age (usually 65).

Compensation is determined and calculated by several factors. The Department of Labor will consider when the initial wage loss began, dates of wage loss claimed, number of years of wage loss prior to SSA retirement age and the Average Annual Wage (AAW) amount prior to the first wage loss. The Average Annual Wage is calculated by using the previous 36 months of wages prior to the wage loss.

Covered employees may be eligible to receive compensation of $10,000 or $15,000 for each qualifying year (prior to normal SSA retirement age).  Earnings must have fallen a specific percentage below the Average Annual Wage (AAW)

  •  $10,000 for any year in which wages were greater than 50% but less than 75% of the calculated average annual wage as a result of a covered illness.
  •  $15,000 for any year in which wages were less than 50% of their calculated average annual wage  as a result of a covered illness.

Several types of proof including medical documentation are required for the wage loss compensation.

Documentation needed to establish earnings:

  • Social Security earnings statement
  • Social Security disability statement
  • Pay stubs
  • Union records
  • Tax returns
  • Pension records

Medical documentation needed to support wage loss:

  • Medical reports showing an inability to work
  • Physician’s office notes
  • Return-to-work slips
  • Physician’s signed statement explaining a relationship between covered illness and period(s) of wage loss

Citations (sources):

http://www.dol.gov/owcp/energy/regs/compliance/PolicyandProcedures/proceduremanualhtml/unifiedpm/Unifiedpm_part2/Chapter2-0200Exhibit5.htm