Wage loss supplement final approval - Archived Aug 5, 2024

Review the salary information based on the outcome of the worker's supported job search (SJS).  Refer to step 6 of the 7-2 Supported job search procedure for additional information on potential outcomes.

Note:  When a documentary review was completed, assess the job option and job lead information to ensure it meets suitability, accessibility and salary criteria. Refer to the supplemental information section in the 7-2 Supported job search procedure.

If the worker's actual earnings or the estimated earnings of the position identified by the re-employment specialist are not on file and the worker:

• Did not find a job, call the re-employment provider to obtain the discharge report including the salary information for the identified job option (i.e.,  ALISALIS is a Government of Alberta website, independent from WCB, which provides more than 550 occupational profiles for positions available across Alberta. The site also contains great resources and tools for workers to use while planning their career. ALIS provides more transparent and publicly accessible records which means workers have this information at their finger tips and can fully participate in their job search., labor market profileResearchers at Millard Health contact employers to do research on jobs based on requests for research from Case Managers and providers. Effective February 1, 2023, ALIS becomes the primary source of Labour Market Information and Labour Market Profiles should only be used in those rare circumstances where an appropriate ALIS occupational profile does not exist. , job lead).
• Found a job, call the worker or employer (when appropriate) to obtain salary information. Verify if future salary increases are known (e.g., salaries for apprentice positions, unions with collective bargaining agreements, or government agencies). Request documentation such as a paystub or an offer of employment when available. 

Contacting the employer is acceptable when the date-of-accident employer is providing modified duties or a permanent accommodation or the worker is participating in training on the job or work assessment. In all other cases, information should be obtained from the worker.

Do not contact new employers directly to confirm earnings, unless the employment was obtained through a training-on-the-job opportunity, to prevent any breach of the worker's privacy.

Note: Monies received from employee buy-out/severance packages are not considered earnings and should not be included as earnings when determining the wage loss supplement amount.

Determine which earnings (i.e., actual, estimated or no post-accident earnings) will be used to calculate the WLS. If reasonable, use the worker's actual earnings before estimating the worker's earnings.  

Actual Earnings 

If the worker's actual earnings are within 15% of their date-of-accident earnings, it is reasonable to base the WLS on the worker's actual earnings. Even when the difference between the worker's actual and DOA earnings exceeds 15%, consider basing the WLS on actual earnings when:

• The worker is participating in Training on the Job (TOJ) or Work Assessment.
• The worker is employed but is not at a vocational plateau (i.e., there is a "next step" in their vocational plan).
• The date-of-accident employer has provided permanent accommodation, and the worker wants to remain with that employer because they have many years of service, a pension, etc. Consider if the position is reasonably consistent with the worker's date-of-accident hours. If not and the worker does not have any restrictions on their work hours, it may be reasonable to also estimate the worker in a part-time position. For example, if the worker worked 50 hours per week at the time of their injury, but the employer is only able to offer permanent accommodation of 20 hours per week, it may be reasonable that the worker could find a part-time position at 30 hours per week.

Estimated Earnings 

When the worker did not find a job or their actual employment does not maximize their earnings ability (unless the actual employment is with the date of accident employer), confirm that the position identified by the re-employment provider is suitable and accessible. If so, estimate the worker's earnings using the salary information submitted by the re-employment provider (e.g., ALIS occupational profile, Labour market profile, job lead or other salary information).

When using the ALIS occupational profile, choose the average hourly starting wage. Use the worker's date-of-accident hours or the hours they are restricted to work to calculate the yearly salary.  

When vocational and salary information are not available through ALIS, Labor market profile (LMP) records are used. The record will typically provide three salaries, choose the salary that is the medianThe median is the mid-point or middle number in a sorted list of numbers. (mid-point).  

Note: At final approval, LMP salary records cannot be older than two years from the publish date. 

To support that the job option is accessible, ensure the job lead hours are reasonably consistent with the date of accident hours. If the job lead hours are higher than the date-of-accident hours, it is not considered a viable lead.

Determine if the job lead salary falls within the range of the salary record being used for the job option. 

Refer to the Sources to support salary and accessibility section for direction on determining the correct earnings and hours to use for estimating purposes.

Wage loss supplement based on no post-accident (zero-based) earnings

If there are no earnings because the worker did not find a job and a job option or job lead were not found, consider what barriers were encountered during the job search process and what actions were taken to overcome those barriers. 

If there are questions about the worker's fitness for work, consider referring for a Medical Status Exam (MSE), Comprehensive Functional Capacity (CFCE) Evaluation, Independent Medical Exam (IME), Physical Suitability Assessment (PSA) or to an internal consultant, as needed.

Discuss the claim with the supervisor to further explore ideas (creative option, training, etc.) that may help the worker be successful in their job search.

Consider paying a wage loss supplement based on no post-accident earnings when:

• the worker is unfit for any work on a permanent basis.
• the worker is fit for some level of work, but a suitable job lead was not identified, and it is expected that a job lead may be identified at a later date. 
• The worker is employed by a designated public service employer with a duty to accommodate process.  Refer to step 3 of the 7-6 Designated public service employer procedure. 

Refer to the TPD based on no post-accident (zero-based) earnings section for additional information.

Note: In all other cases when the worker is fit for some level of work, re-employment services must have been completed within the last 12 months in order to proceed with a no post-accident earnings wage loss supplement.

When determining the type of WLS to pay, assess the following:

• Is the date of accident on/after January 1, 1995? 
• Is the impairment of earnings capacity temporary or permanent? Consider salary projections or known salary increases, and whether the worker will reach their date-of-accident earning within five years (e.g., standardized wage increases for the occupation such as apprenticeship, union jobs or government agencies). 
• Are the work restrictions temporary or permanent?
• Is the worker at a vocational plateau? 
• How long will the wage loss supplement be paid? (Less than a year, 1 to 5 years, or more than 5 years?)

Note: A worker is not considered to be at a vocational plateau when there is a next step in their re-employment plan. See the vocational plateau section.

When re-employment services were provided for temporary work restrictions, ensure the restrictions are confirmed as permanent before proceeding with a permanent wage loss supplement.

The table below outlines the four types of wage loss supplementsA monthly “top up” payment based on 90 percent of the difference between a worker’s pre-accident net earnings and their 90% of their actual post-accident earnings or estimated post-accident earning capacity. the worker may be eligible for if they have an impairment of earning capacity upon their return to work:

For an economic loss payment (ELP) and a temporary economic loss (TEL), the monthly amount is calculated within eCO when the Case Planning line is completed.

For a temporary partial disability (TPD) benefit, the monthly amount is calculated by the Payment Unit which is then added to the Case Planning line. 

For an earnings loss supplement (ELS), the monthly amount is calculated by the Payment Unit which is then is added to the Earnings Loss Supplement line. 

Ensure the following information is completed in the Case Planning line or the Earnings Loss Supplement line: 

• Job information
• Earnings basis (estimated or actual)
• The effective date for the wage loss supplement
• Correct starting salary (based on the worker's actual earnings or the salary record information)  
• Correct hours
• The reduction plan, if the wage loss is an ELP or a TEL, and there is an identified reduction plan. 

Note:  If the worker is due to become a Journeyperson during the TPD period, include the effective date of the change and Journeyperson wages in your file note and ask for both calculations.

Call the worker and discuss:

• The amount of the proposed WLS that is pending final approval.
• The length of time the WLS is payable. Note:  If a worker will temporarily be paid a WLS based on no post-accident earnings, discuss the plan for the worker to job search again and/or to reassess the worker's work restrictions or circumstances. Refer to the wage loss based on no post-accident earnings section in step 2.
• Factors that may change the amount of the worker’s WLS in the future such as changesA worker's wage loss supplement may be discontinued when the work restrictions resolve or the worker no longer has a loss of earnings. to their work restrictions or earnings.
• How the worker is doing at their new job (if the WLS is based on their actual earnings) and whether they might benefit from any workplace modifications, ergonomic assessment or ergonomic devices. 

If the WLS type is an ELP or an ELS confirm:

• The need for proof of age when the date of birth cannot be confirmed from the documents on file. Proof of age may include birth certificate, citizenship papers, passport or driver's license.
• The worker's plans for retirement if they are 50 years of age or older.
• If WLS is an ELP it will be reduced at normal retirement age, unless the worker is still working or can provide satisfactory evidence to show they would have worked beyond normal retirement age. If the worker is 50 years of age or older, provide examples of satisfactory evidence.
• If the WLS is an ELS, it will be discontinued at 65, unless the worker is still working or can provide satisfactory evidence to show they would have worked beyond normal retirement age. If the worker is 50 years of age or older, provide examples of satisfactory evidence.

Note:  Proof of age can be confirmed by documentation on the file if the date of birth matches on the worker's report of injury, the employer's report of injury, and the physician's first report.

Call the date-of-accident employer and confirm if they are able to provide long-term or permanent accommodation. See the 3-1 Modified work procedure.

Discuss the WLS that is pending approval and explain the wage loss liability and next steps in the plan (if applicable). If the employer has questions or concerns on how the wage loss liability impacts their account, offer to have an industry specialist assist them.

Develop a WLS proposal and send to the supervisor for approval to pay a wage loss supplement. Include the following information in the proposal:

• The worker’s salary and how it was calculated/obtained.
• The recommended WLS type.
• The recommended reduction plan.
• The retirement discussion (if applicable) including the date of the discussion and the worker's plans for retirement.

The supervisor will document their decision to approve or not approve the proposed WLS and will forward to the next approver level, if required. See levels of authority manual.

Review the supervisor, manager and/or director file note to confirm if the WLS is approved or not approved. 

When the WLS is not approved, action the supervisor's recommendations as appropriate. Contact the worker to discuss the next steps.  

When the WLS is approved, call the worker to explain the decision, including the calculations, reduction plan and date of the next review. If the worker is not set up to receive payment by direct deposit, advise the worker of the option and the requirement to complete the direct deposit form. 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).
• When the payment is issued. See the Wage loss supplement payment issue dates section.

Notify the employer if there were any changes to the liability since the last discussion.

Once approved, arrange to issue the payments.

Note: ELPs, TPDs and ELSs cannot be requested for less than a full calendar month. 

When the wage loss type is a temporary partial disability (TPD) payment or an earnings loss supplement (ELS), ask the case assistant to set up the monthly payments.

Determine if there are any outstanding issues that need to be resolved. If no, transfer the claim to the case assistant for monitoring.

Note:  When the worker had a concurrent job that they can no longer perform due to their work injury, consider providing cost relief to the date-of-accident employer for the percentage of the WLS that is being paid as a result of the concurrent earnings.