What are reduced earnings benefits in New York workers’ comp?

When your injury prevents you from doing your old job or full-time hours, but you can still work in some capacity, New York workers’ comp provides Reduced Earnings (RE) benefits to make up the gap.

The formula under NY Workers’ Compensation Law §15(5-a) is straightforward: subtract your current weekly wages from your pre-injury AWW, then multiply by two-thirds. That is your RE weekly benefit check.

Example: your pre-injury AWW was $900. After returning to light-duty work, you earn $400 a week. The difference is $500. Two-thirds of $500 is $333 per week in RE benefits on top of your $400 paycheck.

RE benefits are not automatic — you must actively claim them. Every week you work at reduced earnings, you are required to file a Form C-8.6 (Claimant’s Statement) with the WCB reporting your actual earnings. Failing to report earnings is considered fraud and can result in penalties, repayment demands, and disqualification from future benefits.

Employers sometimes use the light-duty return-to-work as a tactic to limit your case value. They offer you a position specifically designed to push you back to work at any cost. If the light-duty job makes your injury worse, or if the employer is creating make-work tasks that do not reflect a real job, document it and tell your attorney.

RE benefits continue as long as your reduced earnings are caused by the work injury. The total duration is subject to the same caps as temporary partial disability benefits under your classification.