What is the Payment Schedule for Workers’ Compensation Checks?
Insurance Companies Should Pay Workers Comp’ Weekly Unless You Agree to a Different Schedule or the Commission Permits the Insurer to Pay Bi-Weekly, Monthly, or Quarterly Instead.
Businesses that have lent money to you (creditors), landlords, utility companies, phone service providers, and your child’s daycare center – these are some of the people who want you to pay them on a schedule regardless of your work-related injury.
So, it is natural and reasonable for you to want to know the workers’ comp payment schedule once you receive an award for wage loss payments (temporary partial or temporary total disability).
This article explains how often your employer or insurance carrier should pay workers’ comp to you. As you will see, workers’ compensation law encourages consistent payments.
Read on to learn more about workers’ comp payment frequency.
If you have questions about occupational injury claims, complete this form or call me at (804) 251-1620 or (757) 810-5614. My law firm has obtained tens of millions of dollars in workers’ compensation settlements for employees like you.
When Will I Receive My Workers’ Comp Check?
Code Section 65.2-521, Time of Payment, governs the workers’ comp payment schedule.
This statute says:
The Commission, upon application of either party, may, in its discretion, having regard to the welfare of the employee and the convenience of the employer, authorize compensation to be paid bi-weekly, monthly, or quarterly instead of weekly.
Therefore, the default rule is that the employer must make workers’ comp payments by the end of each weekly compensation period. If the insurer fails to pay you by this date, the workers’ comp check is late (and you may be able to recover penalties).
But you should read your award letter or the favorable judicial opinion entered after a workers’ compensation hearing to confirm that the Commission ordered weekly payments.
What Day of the Week Does Workers’ Comp Pay?
Virginia law does not require the employer or insurer to pay on a specific day of the week.
Generally, insurers will pay every seven days, with the exact day of the week depending on the day of the week you started receiving benefits.
Can the Insurer or I Change the Workers’ Comp Payment Schedule?
Yes, the parties can change the workers’ comp payment frequency from weekly to bi-weekly, monthly (12 payments per year), or quarterly (four payments per year) if one (or both) parties file a motion to change the schedule and the Commission grants the motion.
Neither party needs their opponent’s permission to submit this motion; however, the Commission’s rules require the party that wants to change payment frequency to talk about it with their opponent and ask if they object.
The insurer should continue to pay weekly until the Commission grants a motion to change the workers’ comp payment schedule.
When is the Commission Likely to Change the Workers’ Compensation Payment Schedule?
As an attorney for injured workers, I recommend sticking to the weekly payment schedule so you can discover and address issues with late checks sooner rather than later.
Indeed, few employees I talk with prefer bi-weekly, monthly, or quarterly workers’ comp checks to weekly ones. They want access to the cash benefits they deserve to pay bills.
However, employers and insurers like to hold on to their money. Indeed, many insurance carriers make significant sums of cash investing premiums and holding onto claim payments to accrue interest income.
Further, the longer the period between payments, the greater the likelihood of a full duty release that allows the employer and insurer to stop payments.
Fortunately, the Commission will likely only accept the insurer’s attempt to change your workers’ comp payment schedule if you received your pre-injury wages bi-weekly or monthly and the employer has a compelling reason that outweighs your interests.
Unless you consent to the change, the Commission will usually keep the weekly payments because protecting employees is a critical purpose of workers’ compensation.
Does Workers’ Comp Pay Direct Deposit to Avoid Interruptions to the Check Schedule?
Some self-insured employers, insurance carriers, and claim administrators (companies like Sedgwick, ESIS, Corvel, Gallagher Bassett, etc.) have started offering direct deposit of workers’ comp checks to claimants.
I recommend taking advantage of workers’ compensation direct deposit if offered.
However, the law does not require employers or insurers to use direct deposit for indemnity payments or lump sum settlements. Therefore, you may have to accept paper checks whose delivery is affected by the postal service.
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