Policy Purpose

This policy is a companion to Policy 44.80.30.10, Establishing Post Accident Earning Capacity, which describes more broadly the post-accident earnings that may be included in benefit calculations. Since January 1, 1992 (“post-91”), the Workers Compensation Board (WCB) has operated on the basis of a wage-loss model. A wage-loss model pays a worker based upon the difference between the worker’s average earnings before the accident and what the worker earns, or is capable of earning, after the accident (“post-accident earning capacity”). Prior to January 1, 1992 (“pre-92”), the WCB operated on a disability model. Under the disability model, like the wage-loss model, the amount of the benefit payable is calculated by reference to a worker’s average earnings before the accident. Workers’ post-accident earning capacity is therefore relevant for pre-92 workers receiving rehabilitation benefits, temporary partial disability benefits (“TPD”) or Special Additional Compensation (“SAC”). Usually, a worker’s post-accident earning capacity is the amount that he or she is actually earning. However, there are some circumstances in which the WCB will determine that a worker is capable of earning more than he or she is actually earning. In those circumstances, the WCB will deem the amount that the worker is capable of earning and will include it in the calculation of post-accident earning capacity as if it had, in fact, been earned. This policy describes:

1. When a worker will be deemed capable of earning an amount that he or she is not actually earning; and

2. How the deemed earning capacity will be determined.