TPD pays a portion of the difference between pre-injury and current earnings while the employee works at reduced capacity. Benefits continue until maximum medical improvement or return to full earnings.
Rates and duration caps vary by state.
Alternative Names:
TPD|Partial Wage Loss Benefits
Why it Matters?
Offering suitable light duty within restrictions terminates or reduces TPD exposure, which makes return-to-work programs a direct cost control rather than merely a policy preference. Refusal of a suitable offer generally suspends benefits. The offer must genuinely accommodate documented restrictions, since a position exceeding them does not suspend benefits and may support a bad faith claim in some states.
Frequently Confused with
Related terms
Frequently asked questions
How is TPD exposure reduced?
What if the offer exceeds restrictions?
