How Temporary Disability Benefits ACTUALLY Work In 2025!

If you get hurt on the job and can’t work, temporary disability benefits help keep money coming in while you recover. But how exactly do they work? How much will you get? And when do the payments stop? Let's get into it.

What Are Temporary Disability Benefits?

If you get hurt on the job and can’t work, temporary disability benefits help replace some of your lost wages while you recover. They’re called “temporary” because they’re meant to cover you while you’re healing—not permanently.

These benefits go up and down depending on your condition. Let’s say you need surgery—you’ll likely be considered totally disabled for a while and get full benefits. As you start recovering, your benefits might decrease.

If, at some point, your injury isn’t expected to fully heal, you could switch over to permanent disability benefits instead.

When Do You Receive Temporary Disability Benefits?

Just because you get hurt at work doesn’t mean temporary disability benefits kick in right away. They only start if your injury actually prevents you from working and causes you to lose wages. If you’re hurt but can still do your job as usual, you won’t qualify. But if your injury forces you to take time off or work fewer hours, you might be eligible.

Here’s how it works:

• After your work injury, you might need medical treatment and time off to recover.
• If your doctor says your injury temporarily disables you from working, you can start getting benefits.
• These payments keep coming until one of two things happens: You heal enough to go back to work or your condition stops improving, and doctors decide you have a permanent disability instead.

Think of these benefits as a financial bridge between getting hurt and either going back to work or transitioning to long-term disability. As long as your doctor confirms that your injury is keeping you off the job, you’re entitled to keep receiving them.

How Much Do Injured Workers Receive in Temporary Disability Benefits?

The short answer: about two-thirds of your average weekly wage—but here is how they are calculated:

• They look at what you earned in the 52 weeks before your injury and calculate your average weekly wage (AWW).
• Your total earnings from that year are added up and divided by 52 to get a weekly average.
• You’re entitled to two-thirds of that number as your temporary disability benefit.

Even if two-thirds of your salary is a big number, there’s a state-set maximum on how much you can receive per week. If your calculated benefit is higher than that cap, you’ll only get the max allowed by law, no matter how much you were earning before the injury.

If your doctor says you have a partial disability—meaning you can work, but not at 100%—your benefits will be adjusted based on your level of disability. The less you’re able to work, the higher your workers' comp payments will be.

How (and When) Do You Get Paid?

Even though your benefits are calculated weekly, you won’t get a check every week. Instead, insurance companies pay out every two weeks, so expect to receive a biweekly payment rather than a weekly one.

By default, most insurance companies mail out paper checks, which means you’ll have to wait for them to arrive. But here’s the better option: direct deposit.

• With direct deposit, your money goes straight into your bank account—no lost checks, no waiting for the mail.
• To set it up, just contact the insurance company (or have your lawyer do it) and fill out a simple form with your banking details.

Mail isn’t always reliable, and delays happen. If your check doesn’t show up when it’s supposed to, call your lawyer or the insurance company ASAP to track it down. If you want to avoid this hassle altogether, switching to direct deposit is the way to go.

Will Your Temporary Disability Benefits Change if Your Condition Improves or Worsens?

Yep—your benefits aren’t locked in. They can go up, down, or stop altogether depending on how your recovery is going and whether you’re able to work.

• If your condition gets worse—let’s say you need surgery or more treatment—your doctor might bump up your disability percentage, which means you could get a higher benefit amount.
• If you start improving, your doctor might lower your disability rating, and your payments will drop accordingly.
• Once you’re back at work full-time, earning what you were before the injury, your benefits stop. Even if you still need medical care, workers’ comp won’t keep paying lost wages once you're making the same money again.

Your benefits adjust as your situation changes, so it’s important to keep up with doctor visits and know where you stand.

Are There Any Strings Attached to Temporary Disability Benefits?

Yep—getting temporary disability benefits isn’t just a free pass to stay home and collect checks. Depending on your situation, you might have to look for work, show up for medical exams, or accept light-duty jobs. If you don’t follow the rules, your benefits could be cut off.

If your doctor says you have a partial disability (meaning you can work in some capacity but not at full strength), the insurance company might expect you to look for jobs that fit your medical restrictions.

• This usually happens after a judge reviews your case and rules that you need to actively job search.
• If you can’t prove you’re looking for work, your benefits could be reduced or stopped completely.

Sometimes, your employer will offer you a modified or light-duty position that works around your injury.

• If your doctor clears you for light-duty work, and your employer has a suitable job, you have to take it—or risk losing benefits.
• But if the job goes against your medical restrictions, you don’t have to accept it. Always check with your doctor and lawyer first before making a decision.

To keep receiving benefits, you need to keep seeing your doctor and provide updated medical records.

• If you miss appointments or don’t submit medical reports on time, the insurance company can stop your payments.

Temporary disability benefits come with responsibilities. If you’re expected to job hunt, consider a light-duty role, or keep up with medical appointments, it’s important to stay on top of it—otherwise, you could lose your benefits when you need them most.

Can You Work and Receive Temporary Disability Benefits at the Same Time?

Yes, you can work and still receive temporary disability benefits—but only if you’re making less money than before your injury because of work restrictions. Workers’ comp might chip in to help cover the difference so you’re not left struggling.

If your doctor clears you to work, but with restrictions (like fewer hours, lighter tasks, or a lower-paying position), this is called light-duty or reduced earnings work.

• If your new paycheck is smaller than what you were making before your injury, you might qualify for reduced earnings benefits to help make up for some of that lost income.

Workers’ comp usually covers two-thirds of the difference between what you made before and what you’re earning now.

Example:

• Before injury: $1,200 per week
• After injury (light duty): $800 per week
• Lost wages: $400 per week
• Workers' comp pays: Two-thirds of $400 = $266.67 per week
  So, instead of getting full temporary disability benefits, you’ll get partial payments while still bringing in a paycheck.

You can take any job and still get benefits but the job has to match your medical restrictions. If you take a job that goes against your doctor’s orders (like heavy lifting when you’re supposed to avoid it), the insurance company could use that as a reason to cut off your benefits.

When in Your WC Case Do Temporary Disability Benefits Get Cut Off?

Here’s when benefits usually end:

• You Go Back to Work at Full Pay. If you’re earning the same wages as before your injury, your benefits end immediately—even if you still need treatment.
• Your Doctor Clears You to Work. If your doctor decides you’re good to go without restrictions, your benefits will be cut off.
• Your Condition Is Now “Permanent.” If your doctor says you’ve hit Maximum Medical Improvement (MMI)—meaning you’re as good as you’re going to get—your case might shift from temporary disability to permanent disability, which is a whole different process.
• You Haven’t Seen a Doctor in 90 Days. In some states (like New York), you must provide recent medical evidence to keep your benefits going. If you skip your appointments for three months, your payments could be suspended.
• The Insurance Company Disputes Your Claim. If the insurance company decides you’re not eligible anymore, they can request a hearing to stop your benefits. This could happen if they catch something in surveillance, get a conflicting medical opinion, or claim you’re not following work search requirements.

If your checks suddenly stop but you’re still not able to work, don’t panic—you have options.

• Check with Your Doctor. If you’re still injured, ask your doctor for updated medical records to prove you’re not ready to go back.
• Request a Hearing. If you think your benefits were cut off unfairly, you (or your lawyer) can challenge the decision and fight to get them reinstated.
• Make Sure You’re Meeting All Requirements. If your benefits stopped because you missed doctor’s appointments or weren’t actively job searching (when required), you’ll need to fix the issue ASAP to get back on track.

Losing your benefits too soon can be stressful, but if you’re still unable to work, you don’t have to just accept it. Staying on top of medical visits and following the right steps can help you keep the support you need while you recover.

Contact Us for Help With Your Workers' Compensation Case

Got questions? Need help with your claim? Give me, Rex Zachofsky, a call at (212) 406-8989. No pressure—just straight answers and honest advice to make sure you’re covered while you focus on getting better.