What is “loss of earning power compensation?”

Following an injury or onset of an occupational disease, if the worker cannot return to his regular job or work hours, but can work fewer hours or do something less physically demanding which pays less, then the worker is entitled to loss of earning power compensation. LOEP pays 80 percent of the difference between the worker’s original earnings and his earnings at the new job. The department often refuses to pay LOEP, making up reasons that are not supported by the law. In one case for a painter we recovered $112,000 in LOEP; in another case for an electrician we recovered $68,000. In both cases, the worker had to reduce his hours due to his injuries. In most cases, LOEP is paid when the worker takes a light-duty job that pays less.