Workplace injuries can be life-changing, especially when they result in long-term or permanent effects. After the initial recovery, one of the most critical steps in a workers’ compensation claim is the permanency evaluation. This evaluation determines the extent of lasting impairment and plays a major role in the compensation an injured worker may receive.

If you’re navigating the workers’ comp process, understanding what a permanency evaluation is — and how it can affect your benefits — is crucial. In this blog, we break down the essentials of a permanency evaluation, when it happens, how it works, and what it means for your claim.

What Is a Permanency Evaluation in Workers’ Compensation?

A permanency evaluation is a medical assessment performed once an injured worker has reached maximum medical improvement (MMI). MMI means your condition is not expected to improve any further with treatment.

The purpose of the evaluation is to determine if you have permanent impairments or disabilities as a result of your workplace injury.

This process is sometimes referred to as a:

• Permanent Impairment Rating
• Disability Rating
• Impairment Evaluation

The findings from this evaluation help insurance companies, employers, and courts decide how much long-term compensation an injured worker is entitled to under workers’ compensation law.

When Does a Permanency Evaluation Occur?

Permanency evaluations are not done immediately after an injury. Instead, they happen:

• After all medical treatment is completed
• Once a doctor declares the worker at Maximum Medical Improvement (MMI)
• Before the case can be settled or moved to a hearing

This timeline ensures that the doctor can accurately assess the permanent effects of the injury without the possibility of further healing.

Types of Impairments in a Permanency Evaluation

There are two broad categories of impairment that a doctor may identify during a workers’ comp permanency exam:

1. Permanent Partial Disability (PPD)

This applies when the worker has a lasting impairment but can still perform some kind of work. Common examples include:

• Loss of motion in a joint
• Hearing or vision loss
• Chronic back pain
• Partial loss of limb function

2. Permanent Total Disability (PTD)

This is when the worker is completely unable to work in any job due to the severity of the injury. This is less common but can include:

• Severe traumatic brain injuries
• Spinal cord injuries leading to paralysis
• Multiple limb loss

Who Performs the Evaluation?

Permanency evaluations are typically conducted by a licensed physician, and depending on your state or insurer, it could be:

• Your treating doctor
• An Independent Medical Examiner (IME)
• A physician appointed by the state workers’ comp board

Doctors use official guidelines like:

• AMA Guides to the Evaluation of Permanent Impairment
• State-specific disability schedules (like in New York or California)

These guidelines help standardize the process and ensure consistency across cases.

What Happens During the Evaluation?

During a permanency evaluation, the doctor will:

• Review your medical records
• Ask about your pain levels and limitations
• Conduct a physical examination
• Possibly order imaging (e.g., X-rays, MRIs) if needed

The doctor will then assign a Permanent Impairment Rating — usually expressed as a percentage (e.g., 15% permanent impairment to the back).

This rating helps determine the amount of compensation you’re eligible to receive.

Why the Impairment Rating Matters

Your impairment rating directly affects your financial benefits. Workers’ compensation laws in most states use this rating to calculate:

• Lump-sum settlements
• Weekly benefits
• Vocational rehabilitation eligibility

Each body part may have a “scheduled” value under the law. For example:

• Loss of a thumb might have a value of 75 weeks of compensation
• A 10% impairment of the back might result in 30 weeks of benefits

The higher the impairment percentage, the greater the benefit — within the legal limits of your state.

What If You Disagree With the Evaluation?

Disputes over impairment ratings are very common. If you disagree with the doctor’s findings:

• You may request a second opinion
• You can hire your own medical expert
• A workers’ compensation judge may ultimately decide whose opinion to accept

It’s crucial to have a workers’ compensation attorney review the evaluation report and help you challenge any inaccurate or unfair findings.

State-Specific Rules on Permanency Evaluations

Each state has its own approach to evaluating permanent disability. For example:

• California uses a formula based on age, occupation, and impairment rating.
• New York uses “Schedule Loss of Use” (SLU) guidelines for certain body parts.
• Texas requires a certified doctor to assign a Whole Person Impairment (WPI) rating.

It’s important to consult state laws or a local attorney to understand how your jurisdiction handles the process.

Tips for Injured Workers Preparing for a Permanency Evaluation

1. Bring documentation: Medical records, diagnostic results, and previous treatment summaries.
2. Be honest but specific: Accurately describe your symptoms and limitations.
3. Don’t exaggerate: Inconsistent behavior during exams can affect your credibility.
4. Consult your lawyer: Before and after the evaluation to discuss next steps.

Final Thoughts

The permanency evaluation is a critical step in the workers’ compensation process. It can have long-lasting financial and legal consequences, so it’s vital to take it seriously. While you can’t control every aspect of the evaluation, being informed and proactive can significantly improve the outcome.

If you’re dealing with a workplace injury and nearing the MMI stage, talk to an experienced workers’ comp attorney to ensure your rights are protected — and you receive the compensation you deserve.