| |
| |
|
| |
A series of articles emphasizing practical
knowledge you can't find in practice guides
and interviews with experts who share
their techniques for effective and efficient
case management
|
 |
Articles emphasizing practical knowledge you can't find in
practice guides
|
|
Profiles of people who changed workers compensation law.
|
|
|
|
|
|
Warren Schneider
Marjory Harris
|
|
|
|
|
 |
< Continued from Page 2
The SEDEC method is proposed to facilitate development of
empirically-derived Vocational Rehabilitation expert opinion and evidence that is useful within the PDRS.
The basic steps of the SEDEC method and formula are described below.
1. Determine average past earnings & convert to hourly rate;
2. Determine single job and/or pool of jobs that most reasonably offer greatest employment potential to worker;
3. Calculate median entry-level hourly wage for job or pool of jobs;
4. Calculate median experienced wage (with 3-5 years experience) for a single job or a pool of jobs;
5. Determine pre-injury worklife or pre-injury work period to be considered;
6. Consider potential loss due to reduced worklife;
7. Calculate loss scenarios using SEDEC formula;
8. Develop alternative scenarios to consider the impact of receiving Vocational Rehabilitation, job accommodations, training, etc.
Pre-injury hourly wage rate (A)
Post-injury entry-level hourly wage rate (B1)
Post-injury experienced hourly wage rate (B2)
Entry-level hourly earnings difference (C)
Experienced hourly earnings difference (D)
Percentage earnings loss during entry-wage period (C1)
Percentage loss during experienced wage period (D1)
Pre-injury years of worklife or # years in work period considered (WL1)
Entry level earnings period (typically 3-5 years) (P1)
Entry level earnings period, expressed as percentage of worklife (P2)
Experienced earnings period (P3)
Experienced earnings period, expressed as percentage of worklife (P4)
Percentage earnings loss during entry wage period (AC1)
Percentage earnings loss during experienced wage period (AC2)
Percentage loss of earnings capacity (AC3)
Post-injury years of worklife or work period, adjusted for disability (WL2)
Post-injury worklife, adjusted for disability, expressed as a percentage (WL3)
Percentage loss of earnings capacity, adjusted for reduced worklife (AC4)
Diminished Earning Capacity
1. A - B1 = C χ A = C1
2. A - B2 = D χ A = D1
3. P1 χ WL1 = P2
4. WL1 P1 = P3
5. P3 χ WL1 = P4
6. C1 x P2 = AC1
7. D1 x P4 = AC2
8. AC1 + AC2 = AC3
Adjustment for Reduced Worklife due to Disability
9. (WL1 - WL2) χ WL1 = WL3
10. AC3 + WL3 = AC4
Case Example:
40 y.o. male Carpenter, with less than a HS education, had pre-injury earnings of $20/hour (A)
Entry-level post-injury earnings are projected @ $10/hour (B1)
Entry-level earnings difference is $10/hour (C)
Percentage earnings loss during entry-level work period is 50% (C1)
After 5 years, experienced earnings are projected @ $14/hour (B2)
Percentage earnings loss during experienced work period is 30% (D1)
($20 -14 = $6/hour, a 30% loss) (A - B2 = D χ A = D1)
Pre-injury worklife or work period considered is estimated @ 25 years (WL1)
Percentage of WL1 subject to entry wages is 20% (P2)
(entry-level wage period is 5 years, which is 20% of 25 years) (WL1)
Percentage of WL1 subject to experienced wages is 80% (P4)
Note: experienced wage period is 20 years, which is 80% x 25 years
(80% x 25 years = 20 years)
Percentage earnings loss during entry wage period is 10% (AC1)
(50% (C1) x 20% (P2) = 10%
Percentage earnings loss during experienced wage period is 24% (AC2)
(30% (D1) x 80% (P4) = 24%
Estimated % of diminished capacity over remaining worklife is 34% (AC3)
(10% (AC1) + 24% (AC2) = 34% (AC3)) (AC1 + AC2 = AC3)
Estimated Diminished Earning Capacity over Worklife is 34%
Optional Adjustment for Reduced Worklife due to Disability
Post-injury worklife or work period, adjusted for disability, is estimated at 20 years (WL2).
For this example, this means there is a 100% loss of earnings for 5 years out of total work life of 25 years.
Expressed as a percentage, loss of worklife due to disability is 20% (WL3)
(25 20 = 5 χ 25 = 20%) (WL1 - WL2) χ WL1 = WL3
Estimated Diminished Earning Capacity, Adjusted for Reduced Worklife, is 54% (34% + 20% = 54%). (AC3 + WL3 = AC4)
Standardized BLS worklife data based upon age, gender, race & level
of education;
Labor force participation rates that take disability into account
References:
Millimet, Nieswiodomy, Ryu, Slottje (2002) Estimating Worklife Expectancy: An
Econometric Approach. Department of Economics, Southern Methodist
University: Dallas, Texas;
Ciecka, Donley, Goldman. Work Life Estimates at Millennium's End:
Changes over the Last Eighteen Years. Illinois Labor Market Review:
(Vol. 6, No.2 Summer, 2000);
Smith, S.Revised worklife tables reflect 1979-80 experience. Monthly Labor
Review: August, 1985.
Steinmetz, Erica, J. (2002). Americans with Disabilities: 2002. U.S. Census Bureau.
McNeil, J. (2000). Employment, Earnings, and Disability. U.S. Bureau of the Census;
Trupin, Sebasta, Yelin, LaPlante (1997). Trends in Labor Force Participation
Among Persons with Disabilities, 1983-1994. Disability Statistics Rehabilitation
Research & Training Center, University of California, San Francisco.
The New Worklife Expectancy Tables (2002) Vocational Econometrics. Louisville, Ky.
About the Author
Robert Hall, Ph.D.
Certified Rehabilitation Counselor
Certified Disability Management Specialist
(619) 463-9334
Fax (619) 463-9337
info@rehabsource.org
|
 |
Dr. Robert Hall has practiced as a
Vocational Rehabilitation consultant in California since 1980.
He has served as Director of the Work & Health
Technologies Center at San Diego State University and as
Adjunct Professor in SDSUs graduate Rehabilitation Counseling
Program since 1993. Dr. Hall has conducted extensive research
and training activities in disability, rehabilitation, and
return-to-work programs. Dr. Hall has consulted with and
provided training to a variety of health and human service
organizations in the areas of rehabilitation program
development & evaluation. He has consulted with several
large employers and insurance organizations regarding
proactive compliance programs with the employment provisions
of the FEHA and ADA. Dr. Hall has developed SEER software, an
occupational information and analysis system that utilizes the
O*NET database. Dr. Hall is also a principal in Presagia
Corporation, an employee health and productivity management
software and consulting company based in Montreal, Canada. |
|
|
