Transitional Duty Cost Calculator Definitions

Estimated* Number of Days Saved

Calculate the number of days you will be able to save by implementing a Return to Work Program. The estimate can be per claim, per year or per company.

For example, if there is an employee the medical provider estimates will be out of work for 8 weeks (8 weeks X 7 days/week = 56 days) and you can place the employee in a transitional duty position so he misses zero days from work, enter 56 days saved. If he will miss a few days of work, for example 4 days, then subtract those days from your initial estimate and enter the remaining days (56 days – 4 days = 52 days).

Or, for example, if you think you will cut your lost work days in half this year, saving 200 days at $100/day, enter that data to show the total cost savings from your transitional duty program.

Some states have unreimbursed waiting periods during which time an employee is not paid a wage loss benefit. You can subtract those days, if you wish.

Estimated* Average Indemnity Cost Per Day

Estimate the average weekly lost wage (indemnity) payment for an employee who are out of work. Since most lost wage calculations are based on calendar days, you can divide the weekly indemnity payment by 7. If your jurisdiction calculates wage loss benefits based on business days, divide the weekly wage payment by 5.

Note: if an employee is working two jobs, the average weekly wage received for workers’ compensation may include wages lost from both jobs.

Estimated* Cost of Replacement Labor

Estimate the cost of replacement labor by pro-rating the annual salary or wages of the employee who is out of work.

Or, use the same amount as the lost wages for the employee who is out of work. This is the amount in the field labeled: Total Estimated Savings of Bringing That Employee back to work on Transitional Duty.

The cost of replacement labor may be more or less than the employee missing work, so remember, this is only an estimate.

* Important Note: These figures are estimates only. They can be useful to gain management and supervisor commitment for implementing a transitional duty program and bringing injured employees back to work in temporary transitional duty tasks. Never rely on these estimates for legal, medical, accounting, chargeback or any other purpose.