The main WCB-Alberta website and its online applications use
JavaScript technology and some cookies. Please ensure you have
JavaScript and cookies enabled in your browser. Visit the
help page for more
information.
Wage loss supplement final approval - Archived Jul 15, 2024
Procedure summary
Published On
Feb 1, 2023
Purpose
To refer injured workers for services to assist them in exploring new job options when they can no longer return to their date-of-accident job or employer.
To determine entitlement and amount of wage loss benefits.
Description
The decision maker anticipates the need for re-employment services for their worker and, in most cases, refers the worker for a triage assessment. During the triage assessment, a re-employment specialist collaborates with the worker to assess their needs and then makes recommendations for the right re-employment services that would best suit the worker’s unique needs and circumstances.
The recommended services can range from basic “skilling up” services that focus on short term training options to enhance the worker's employability, to longer-term services such as job training and supported job search.
Throughout the re-employment process, the decision maker keeps in regular contact with the worker and re-employment specialist to monitor the worker’s progress and to offer additional assistance and support to the worker.
The decision maker makes every effort to support the worker in finding a job that maximizes their earning potential or matches what the worker earned at their date of accident job.
If the worker’s return-to-work options lead to lower earnings, the decision maker determines whether they may be entitled to an additional wage loss benefit. The wage loss benefit provides a top up between the worker’s estimated or actual earnings and their earnings at the time of their injury.
Key information
Decision makers can make a referral for a triage assessment while the worker is still in treatment.
The re-employment services triage assessment supports workers by focusing on the services they need and allows them to access training earlier so they stay focused and engaged in returning to work.
The assessment also supports decision makers by making recommendations for the services that will best support their workers' return to work. Changing jobs or careers can be a challenging time for an injured worker. The decision maker ensures the worker is engaged and plays an active role in each decision and step throughout their return-to-work journey.
While the decision maker assists the worker in finding a job, it is the re-employment specialist who assesses the worker and makes the recommendation for services based on the triage assessment results.
As of April 1, 2021, workers have a duty to cooperate in their return to work and vocational rehabilitation (re-employment). Cooperation means full participation and disclosure, as required, in those activities and services at each stage of a claim that are focused on supporting a worker’s recovery and return to work. The goal is to act in good faith to maximize recovery and achieve return to work, or independence for workers who are medically unable to return to work. There may be an impact to the worker’s benefits if they are not cooperating.
Detailed business procedure
Expand all
Collapse all
1. Confirm the worker’s salary information
If the actual or estimated earnings are not on file, contact the worker or employer (when appropriate) to obtain the missing information.Request a copy of the worker’s employment offer letter or copies of their pay stubs to confirm salary information.
When estimating earnings, use the average starting wage from the ALIS Occupational Profiles. When vocational and salary information is not available through the ALIS Occupational Profile, use the median wage (hourly) from the Labor Market Profile (LMP).
Administrative tasks
There are no administrative tasks for this step.
2. Determine the type of wage loss supplement to pay
The type and duration of the payment is based on the worker’s:
Work restrictions
The anticipated length of impairment to the worker’s earnings capacity
Whether the worker has reached a vocational plateau.When a worker has completed their re-employment plan and is fully trained and skilled in their chosen position.
The table below outlines the three types of wage loss supplementA monthly “top up” payment based on 90 percent of the difference between a worker’s pre-accident net earnings and their actual post-accident earnings or estimated post-accident estimated earning capacity. the worker may be eligible for if they suffer a wage loss upon their return to work:
Work Restrictions
Loss of earnings ability
Temporary for up to one year
Permanent
Temporary
Permanent
Temporary partial disability (TPD)
🗸
Temporary for up to a year.
🗸
Temporary economic loss (TEL)
🗸
🗸
Temporary up to five to six years with annual earnings review.
Economic loss payment (ELP)
🗸
🗸
A review of earnings is done periodically and at the age of 65.
Administrative tasks
Complete the case planning line, ensuring you have added a reduction plan (for ELPs and TELs only).
When the WLS will be a TPD, add a file note (Compensation Payment/TPD Calculation) requesting calculation of the monthly TPD amount.
Once all items are actioned, complete the FM033A (WLS Final Approval Checklist) form and attach it to the CPL or ELS line.
3. Calculate the wage loss supplement based on the worker’s scenario
The worker secured a job
Determine wage loss based on their actual earnings, unless the worker is underemployed, and a more suitable job option has been identified for which a suitable job lead is on file.
The worker hasn’t secured a job, but has job leads and/or a job option
Determine wage loss based on estimated earnings – what the worker would earn if they were working in a job that is equivalent to their job option.
Confirm the worker’s pre-approved job option is appropriate and accessible.
Recalculate the estimated salary if the job lead salary falls outside of the range of available salary records.
Determine what the monthly payment will be.
The worker hasn’t secured a job and has no job leads or job options
This can occur when the worker faces obstacles to employment such as the extent of their injury, their education, or their geographical location.
Calculate wage loss supplement with no post-accident earnings deducted. Continue to review in the future.
If at any time the worker chooses to not cooperate in their job search, they are no longer eligible for job search benefits. Ongoing benefits are based on:
If a job option was identified – pay a TPD for 12 months based on the job option salary.
If a job option was not identified – pay a TPD based on minimum wage.
Review at 12 months to determine if the TPD should become an ELP.
If a worker chooses to re-engage in their supported job search at a later date, continue to provide them with their full benefit entitlement. Adjust the TPD as needed.
Administrative tasks
When the worker will be entitled to a Section 67 rate in the future, the rate can be set now for a future date.
Adjust the starting salary of the CPL to reflect actual or estimated earnings.
If anticipated salary increases are known, populate the reduction plan in the case planning line based on these increases.
If anticipated salary increases are not known, populate the CPL with the starting salary and use the ELP/TEL calculator to complete the remainder of the reduction plan.
Complete a WLS proposal and copy and paste this information into an eCO file note using the case planning line category and send it to your supervisor for review and approval.
4. Communicate the wage loss supplement calculation to the worker
Call the worker and discuss:
The amount of the proposed wage loss supplement, pending final approval.
Factors that may change the amount of the worker’s wage loss supplement in the future such as changes to their work restrictions or earnings.
How the worker is doing at their new job (if the WLS is based on actual earnings) and whether they might benefit from any workplace modifications, ergonomic assessment or ergonomic devices.
Administrative tasks
Document the conversation in a file note (Case Planning/Details) and attach the file note to the CPL or ELS line.
Update eCO screens as required.
5. Obtain appropriate approval for the wage loss supplement
Send a file note to the appropriate approver outlining:
The worker’s salary and expected salary information.
The recommended wage loss supplement payment.
The recommended reduction plan.
Once approved, arrange to issue the payments.
Administrative tasks
Select new "Re-employment (RE) package" by selecting the radio button "Package" on the Claim Document Search screen in eCO.
6. Communicate the benefit entitlement to the worker
Call the worker to explain the decision, including the calculations, reduction plan and date of the next review. Send a letter to the worker, with a copy to their date of accident employer, confirming:
The worker’s monthly payment amount.
How the payment was calculated.
The payment reduction plan and whether the plan was calculated based on known or estimated salary increases.
The date that the wage loss supplement will be reviewed, what to expect and what documents are needed for the review (i.e., proof of earnings, task information, paystubs).
Once approved, arrange to issue the payments.
Administrative tasks
If the worker is not set up to receive payment through direct deposit, advise the worker of the option and the requirement to submit the C078 form.
