Workers’ Compensation Insurance: Use of Sick Leave Accruals

Coordinating Sick Leave and Workers' Compensation Benefits

An employee may choose to remain on the Research Foundation (RF) payroll and use sick leave accruals from the first day of the injury or illness until sick leave accruals are exhausted. At that point he or she may receive workers' compensation income replacement benefits for the duration of the disability.

An employee may instead elect to receive workers' compensation income replacement benefits from the first day he or she becomes eligible for the benefits.

Sick Leave Credit

Reimbursement from the Insurance Carrier

If an employee chooses to use sick leave accruals, once the claim is approved by the Workers' Compensation Board, the RF will request reimbursement from the insurance carrier for the period during which sick leave accruals were paid to the employee. Once the RF receives reimbursement from the insurance carrier, central office restore the dollar amount of the reimbursement to the grant.

Example of Reimbursement

Jude Smith earned $1,500 per week before being injured on the job on July 2, 2013. The maximum workers' compensation income replacement benefit for disablements incurred after July 1, 2013 is two-thirds of the average weekly wage for the prior calendar year (2012) of $1,204.81. The value of the insurance carrier reimbursement is based on two-thirds of Smith's weekly salary (2/3 x $1,500 = $1,000). Since this amount is greater than the maximum benefit of (2/3 x $1,204.81 = ) $803.21 , the value of the reimbursement is $803.21 per week.

Employee Sick Leave Credit Adjustment

A portion of the employee's sick leave accrual should be restored by the campus based on the value of the reimbursement.

Fringe Benefit Sick Leave Pool and Grant Reimbursement

If an employee uses sick leave accruals for more than 30 consecutive calendar days (weekends included), the payments beyond 30 days are funded from the fringe benefit sick leave pool account (refer to Transferring Costs and Corporate General Ledger Withholding Awards). Operating locations must ensure that reimbursement from the carrier is credited to the grant and/or the sick leave pool account as appropriate.

Change History

 

 

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