How are Temporary Total Disability (TTD) benefits typically calculated?

Temporary Total Disability (TTD) benefits are typically calculated as a percentage of the injured worker's Average Weekly Wage (AWW). The rationale behind this calculation method is to ensure that workers who are temporarily unable to perform their job due to a work-related injury or illness receive financial support that is proportional to their earnings prior to the incident.

By using a percentage of the AWW, TTD benefits aim to replace a significant portion of the income lost during the period of disability, which helps to maintain the worker's financial stability. This percentage can vary based on state-specific regulations, but it generally reflects a standard approach to ensure that workers are compensated fairly while they recover.

In contrast, some other approaches to calculating benefits, such as fixed amounts or lump-sum payments, do not account for individual earnings and can potentially lead to inequities among workers with differing wage levels. Additionally, a variable amount based solely on the duration of disability could create complications in ensuring that the benefits align with the injured worker's financial needs during recovery. Thus, tying TTD benefits to the AWW provides a consistent and equitable framework for compensation during temporary disabilities.