Calculating Temporary Total Disability (TTD) and Permanent Partial Disability (PPD) Rates in South Dakota

Opening your first indemnity check after a serious workplace injury in Sioux Falls, Rapid City, or Aberdeen often triggers immediate financial stress when the deposit is noticeably smaller than your regular paycheck. Insurance adjusters rely on strict statutory formulas to compute your weekly compensation rate, and a single calculation error in your baseline earnings can underpay your household by thousands of dollars over the life of a claim.

In South Dakota, all wage-loss and permanent impairment payouts are governed by Title 62 of the state code and overseen by the South Dakota Department of Labor and Regulation, Division of Labor and Management, Pierre. Knowing how the insurer calculates your Average Weekly Wage (AWW), applies state-mandated minimum and maximum caps, and transitions your claim from Temporary Total Disability (TTD) to Permanent Partial Disability (PPD) allows you to spot underpayments immediately.

Calculating Your Average Weekly Wage (AWW) in South Dakota

Every disability benefit formula in South Dakota begins by establishing the injured employee's pre-injury Average Weekly Wage (AWW), which insurers document on Form 110, South Dakota, Department of Labor and Regulation, Calculation of Compensation. Because work schedules vary across industries, South Dakota law establishes specific statutory methods based on your employment history:

• Full-Year Employees (52 Weeks): Under S.D. Codified Laws § 62-4-24, if you worked in the same grade of employment for the same employer throughout the full year preceding your injury, your AWW is calculated by taking your total gross earnings during those 52 weeks and dividing by 52.
• Employees Working Less Than a Full Year: Under S.D. Codified Laws § 62-4-25, if you worked for your employer for less than a year before getting hurt, your total gross earnings are divided by the actual number of weeks and fractions thereof that you worked. If your tenure was so brief that this math produces an unfair result, the insurer must use the 52-week average earned by a coworker in the same grade of employment.
• Seasonal or Irregular Employment: For agricultural, construction, or tourism jobs that operate only part of the year, S.D. Codified Laws § 62-4-27 and S.D. Codified Laws § 62-4-26 calculate annual earnings as 50 times the average weekly wages earned during the active season (or 200 times the average daily wage) divided by 52.
• Concurrent Employment (Multiple Jobs): Under S.D. Codified Laws § 62-1-25, if you held two jobs simultaneously when injured, your earnings from both employers are combined to calculate your AWW provided the injury occurred while actively working and prevents you from performing your duties at both jobs.

Temporary Total Disability (TTD) Limits and the 7-Day Waiting Period

When a work injury completely prevents you from working while you recover, S.D. Codified Laws § 62-4-3 entitles you to Temporary Total Disability (TTD) benefits equal to 66 2/3% (two-thirds) of your Average Weekly Wage. Because workers' compensation benefits are exempt from federal and state income taxes, the two-thirds rate is designed to approximate your pre-injury take-home pay.

However, TTD payouts are subject to a statutory waiting period under S.D. Codified Laws § 62-4-2. No temporary disability compensation is paid for an injury that does not incapacitate the employee for at least 7 consecutive calendar days. Once your physician keeps you off work for 7 consecutive days or longer, the waiting period is waived and your TTD compensation is paid retroactively from the original date of the injury. If your doctor releases you to light-duty work at reduced hours or lower pay during recovery, you may instead qualify for Temporary Partial Disability (TPD) under S.D. Codified Laws § 62-4-5, which pays 50% of the difference between your pre-injury AWW and your post-injury weekly earnings.

How State-Mandated Maximum and Minimum Rates Affect Payouts

You do not automatically receive a straight 66 2/3% of your wages if you are a high-income or low-income earner. Under S.D. Codified Laws § 62-4-3.1 and S.D. Codified Laws § 62-4-3, the South Dakota Department of Labor and Regulation, Division of Labor and Management, Pierre sets strict weekly ceilings and floors based on the state average weekly wage:

• State Maximum Weekly Rate ($1,152): Weekly compensation is capped at 100% of the state's average weekly wage rounded to the next dollar, which equals $1,152 per week. Any worker whose gross AWW exceeds $1,728 per week will have their weekly check capped at $1,152.
• State Minimum Weekly Rate ($576): The statutory minimum floor is set at 50% of the maximum rate, which equals $576 per week. If 66 2/3% of your AWW falls below $576 (for example, if you earn $750 gross per week, where two-thirds would be $500), your benefit is boosted up to the $576 minimum floor.
• Low-Earner Net Wage Rule: If your gross AWW itself is less than the $576 minimum floor, S.D. Codified Laws § 62-4-3 specifies that you do not receive $576; instead, you receive 100% of your gross AWW minus standard state, federal, and FICA tax deductions (your exact net take-home pay).

The Transition to Permanent Partial Disability (PPD) at MMI

Under S.D. Codified Laws § 62-1-1, Temporary Total Disability benefits do not last forever. TTD payments continue only until you attain complete recovery or until a specific permanent loss becomes ascertainable-the medical milestone known as Maximum Medical Improvement (MMI), where your condition has stabilized and will get no better or worse. Once you reach MMI, TTD stops (unless you are undergoing approved vocational rehabilitation under S.D. Codified Laws § 62-4-5.1) and your claim transitions to Permanent Partial Disability (PPD).

To calculate PPD in South Dakota, a physician evaluates your permanent functional loss using the American Medical Association (AMA) Guides to the Evaluation of Permanent Impairment as required by S.D. Codified Laws § 62-1-1.2. Under S.D. Codified Laws § 62-4-6, each body part is assigned a maximum number of weeks of compensation, and your doctor's percentage rating is multiplied by that schedule:

• Whole Person (Back, Neck, Spine, Internal Organs): 312 weeks maximum
• Loss of an Arm: 200 weeks maximum
• Loss of a Leg: 160 weeks maximum
• Loss of a Hand or Sight in One Eye: 150 weeks maximum (hand and finger impairments are mapped on Form 112, South Dakota, Department of Labor and Regulation, Hand Diagram)
• Loss of a Foot: 125 weeks maximum
• Loss of a Thumb or Index Finger: 50 weeks for a thumb; 35 weeks for an index finger

For example, if you earn an AWW of $1,200 (giving you an $800 weekly compensation rate) and reach MMI after back surgery with a 10% whole-person impairment rating, you multiply 10% by 312 weeks to get 31.2 weeks of PPD. Multiplying 31.2 weeks by your $800 weekly rate yields a total PPD award of $24,960. As emphasized in Cozine v. Midwest Coast Transport, Inc., 454 N.W.2d 548 (SD Supreme Court 1990), medical impairment ratings under S.D. Codified Laws § 62-4-6 are distinct from total loss of earning capacity, which may qualify a severely disabled worker for lifetime Permanent Total Disability (PTD) under S.D. Codified Laws § 62-4-53.

Step-by-Step Process for Auditing Your Benefit Rate in South Dakota

Whether your claim is handled while you live in Sioux Falls, Rapid City, Pierre, or Aberdeen, you should independently verify the insurance adjuster's math at every stage of your recovery.

Step 1: Gather 52 Weeks of Pre-Injury Pay Stubs

Collect your W-2s and pay stubs covering the 52 weeks prior to your accident. Verify that all gross wages, shift differentials, and contractual allowances were included in your baseline earnings under S.D. Codified Laws § 62-1-1.

Step 2: Request Form 110 From the Insurance Adjuster

Ask the adjuster for a copy of Form 110, South Dakota, Department of Labor and Regulation, Calculation of Compensation and Form 107, South Dakota, Department of Labor and Regulation, Monthly Payment Report. Check that the insurer divided your earnings by the exact number of weeks actually worked rather than artificially dividing a partial year by 52.

Step 3: Verify Your AMA Impairment Rating at MMI

When your doctor declares you at MMI, review the written impairment report to confirm the physician applied the correct scheduled body-part weeks under S.D. Codified Laws § 62-4-6. If the insurer's doctor assigns an unfairly low rating, you have the right to seek an independent rating evaluation.

Step 4: Challenge Underpayments or Petition for a Lump Sum

If the adjuster refuses to correct an underpaid AWW or PPD rating, you can file a Petition for Hearing with the South Dakota Department of Labor and Regulation, Division of Labor and Management, Pierre. Additionally, under S.D. Codified Laws § 62-7-6 and Stuckey v. Sturgis Pizza Ranch, 793 N.W.2d 378 (SD Supreme Court 2011), you may petition the Department to commute unpaid future disability payments into a present-value lump sum if it is in your best financial interest.

How Much Does It Cost to Dispute a Rate Calculation in South Dakota?

• Department Filing Fees: Filing an administrative challenge or a petition for lump-sum commutation with the Department of Labor and Regulation costs $0. Appealing an agency order to the Second Judicial Circuit Court, Minnehaha County, Sioux Falls or the Seventh Judicial Circuit Court, Pennington County, Rapid City requires a $70 court filing fee.
• Independent Impairment Evaluations: Hiring an independent physician to challenge a low PPD rating typically costs between $800 and $2,500.
• Contingency Lawyer Fees: Under S.D. Codified Laws § 62-7-36, an attorney can only charge a percentage of the additional disputed benefits they recover for you (capped at 25% for settlements, 30% for hearings, and 35% for appeals to the South Dakota Supreme Court, Pierre). Your lawyer never takes a cut of the undisputed weekly checks the insurer was already paying.

How Long Does the Process Take?

For accepted claims, your first TTD check generally arrives within 14 to 21 days after you miss 7 consecutive days of work. Reaching Maximum Medical Improvement and transitioning to PPD typically occurs 6 to 18 months after a major injury or surgery. Once a physician issues a permanent impairment rating, insurers generally begin paying weekly PPD checks within 30 days, or negotiate a lump-sum settlement that takes 30 to 60 days for formal approval by the Department of Labor and Regulation. If you suspect your weekly rate or PPD award was miscalculated, browse our directory of South Dakota workers' compensation lawyers to have a local professional audit your claim.

Frequently Asked Questions (FAQ)