Jacobsen v. Department of Labor & Industries

**Jacobsen v. Department of Labor & Industries: Worker Wins Disability Benefits Case** This case involved a dispute over how Washington state's Department of Labor & Industries calculated disability benefits. The worker, Jacobsen, challenged the Department's practice of deducting temporary disability payments (money paid while temporarily unable to work) from his permanent total disability pension fund. The Department argued they could subtract the temporary payments from the worker's permanent disability reserve account. However, Jacobsen claimed this was wrong under state law, which only allows deductions for permanent partial disability payments—not temporary ones. The court sided with Jacobsen. Both the trial court and appeals court ruled that Washington law (specifically RCW 51.32.080(4)) does not permit the Department to deduct temporary total disability benefits from a worker's permanent total disability pension reserve. The law only allows deductions for permanent partial disability payments. **What this means for workers:** If you're receiving workers' compensation in Washington, the state cannot reduce your permanent total disability pension by subtracting temporary disability benefits you received earlier. This protects workers from having their long-term disability benefits unfairly reduced and ensures they receive the full compensation they're entitled to under state law.