Utah Workers' Compensation Impairment Ratings, MMI, and Lump Sum Settlements
General information, not legal advice. Read the full disclaimer.
Short answer: In Utah workers' compensation, permanent partial disability (PPD) benefits depend on an impairment rating assigned after you reach medical stability — also called maximum medical improvement (MMI). An injured worker must receive an impairment rating within six years of the injury, or file an application for hearing to keep the claim open for up to 12 years. A lump sum payment of PPD benefits requires prior approval from the Labor Commission's Adjudication Division, using Form 134 (Application for Lump Sum or Advanced Payment), and an approved lump sum is reduced to its discounted present value.
Who this guide is for
Utah workers who are near the end of treatment and want to understand ratings, how permanent benefits are calculated, and how a lump-sum settlement works.
Key terms
- Maximum medical improvement (MMI) — the point at which the medical condition has stabilized and further functional improvement is unlikely despite continued treatment or rehabilitation. A treating physician determines when you've reached it.
- Impairment rating — a percentage assigned by an authorized physician measuring permanent loss from the injury; it's the basis for permanent partial disability compensation.
- Independent medical evaluation (IME) — after MMI you're referred for an IME in which a qualified doctor reviews your records and treatment plan and the current state of stability to determine the percentage of partial disability.
How PPD is calculated and paid
PPD compensation is determined by the impairment rating and your wages: 66⅔% of your average weekly wage at the time of the injury, subject to a weekly maximum — $917 for July 2026–June 2027 (66⅔% of the state average weekly wage) — and a minimum of $45 plus dependent amounts. The Labor Commission's guide explains that the overall report determines the percentage of partial disability, and compensation is then based on wages and that percentage. See Utah Workers' Compensation Benefits and Weekly Rates.
The six-year and 12-year clocks
Under Utah Code § 34A-2-417, a claim for disability compensation (including PPD) is barred unless the employee files an application for hearing within six years of the accident and can prove entitlement within 12 years (with limited exceptions for reemployment plans and active adjudication). The Labor Commission summarizes this for impairment ratings: you must receive a rating within six years of the injury or file an application for hearing to keep the claim open for 12 years. Don't let a slow rating process run out the clock.
If you disagree with the rating
- Review the IME report and the treating doctor's findings.
- Ask whether other conditions from the injury were considered.
- Talk to a workers' compensation attorney about challenging the rating and the next step, which is typically an Application for Hearing with the Adjudication Division.
Lump sum settlements
A lump sum can be paid after PPD compensation has been determined and with prior approval from the Adjudication Division. You submit Form 134, and if it's approved the amount is reduced to its discounted present value. Because a lump sum ends future checks, consider:
- Discount: you receive less than the total of the weekly payments you'd otherwise get.
- Future medical benefits: medical care is a lifetime benefit as long as treatment is necessary for the work injury; understand whether any settlement affects it before you sign.
- Other benefits: how a settlement interacts with Social Security, Medicare, and health coverage can matter.
- Permanent total disability: PTD benefits are lifetime benefits in a different category; discuss with an attorney before trading them away.
Return to work and rehabilitation
If permanent limitations keep you from your old job, you may be eligible for rehabilitation services through the Utah State Office of Rehabilitation, and in some cases for permanent total disability if you can't perform any reasonably available work.
Frequently asked questions
What is MMI?
Maximum medical improvement: the point your condition has stabilized and further functional improvement is unlikely, as determined by a treating physician.
Who determines my impairment rating?
An authorized physician; after MMI you're typically referred to an independent medical evaluation.
How long do I have to get a rating?
Within six years of the injury, or file an application for hearing to hold the claim open for 12 years.
Can I take a lump sum?
Yes, with Labor Commission approval; the amount is reduced to its discounted present value.
Do I lose medical benefits if I take a lump sum?
Ask before signing — the lump sum applies to PPD compensation, and the effect on future medical benefits should be confirmed in writing.