Understanding Iowa’s Second Injury Fund

How to Receive Additional Workers’ Compensation Benefits for Multiple Injuries

When an Iowan who already has a disability in one limb suffers an injury to another limb, the effects are multiplied. The physical and financial toll often go far beyond the effects of a single injury in isolation.

Traditional Iowa workers’ comp benefits may help with the new injury. However, they often don’t come near covering the full effect of having multiple disabling injuries at once.

Iowa’s Second Injury Fund exists to bridge this gap. The state-run program is separate from the workers’ comp benefits you may receive from your employer. Its purpose is to give you added assistance if you are injured for a second time.

However, many Iowans do not know this fund exists, or if they are eligible for it. That’s because the fund is not part of the traditional workers’ comp system and is limited to very specific injuries. 

The experienced Iowa workers’ comp attorneys at Schott Mauss & Associates are experts at navigating this system. We have helped Iowans secure millions of dollars through Iowa’s Second Injury Fund. Let’s look closer at the fund, what types of injuries qualify, and how to apply.

What Exactly Is Iowa’s Second Injury Fund?

Iowa created the Second Injury Fund in 1945 to help injured World War II veterans return to the workforce. State lawmakers’ goal was to encourage employers to hire partially disabled veterans by limiting how much they would have to pay if a worker sustained a new, work-related injury.

In the years since, the Americans With Disabilities Act has outlawed hiring discrimination based on disability. However, the Second Injury Fund remains a valuable safety net for modern workers.

Under state law, employers and their insurers only need to pay workers’ comp benefits for the second work-related injury. These benefits only consider the second injury in isolation, not the combined effect of both injuries.

Then, the state of Iowa offers more benefits that take into account the impact of both injuries on the workers’ earning capacity.

What Types of Injuries Qualify for the Second Injury Fund?

Unlike workers’ compensation, the Second Injury Fund does not cover all types of injuries. Iowa Code has very strict requirements about what body parts are covered. Different rules apply to the first injury and to the second injury.

First Injury Requirements:

• It must be an injury to the hand, arm, foot, leg, or eye. 
• It does not have to be a work-related injury — or an injury at all. It could be a condition you were born with. 
• It must result in permanent partial disability (PPD).

Second Injury Requirements:

• It must be an injury to a different hand, arm, foot, leg, or eye.
• It must be a work-related injury.
• It must result in permanent disability.

It is possible to qualify if you have had more than two disabling injuries, as well. However, at least one of your previous injuries and your new injury must meet the qualifications in order for you to receive the funds.

What Types of Injuries Don’t Qualify?

As you can see, the list of injuries that will qualify for the Second Injury Fund is very narrow. If your first or second injury was to your back, neck, hip, or another body part in isolation that is not listed under the requirements, it will not qualify.

It is also important to reiterate that the injuries must be to different parts of the body. If you sustain two injuries to the same arm or leg, you will not qualify for the Second Injury Fund. 

Drawing a hard line of what is a qualifying injury for Second Injury Fund purposes can be difficult. Second Injury Fund cases continue to come before the Iowa Supreme Court to bring clarity to this law. If you are unsure whether your injury qualifies, we encourage you to talk with an experienced workers’ comp attorney.

How Are Second Injury Fund Benefits Calculated?

Once you know whether you qualify for Second Injury Fund benefits, you may wonder how much you will receive. The answer is complicated. That’s because these benefits are based on a complex part of Iowa workers’ compensation law: The difference between scheduled member injuries and industrial disability injuries. 

Here is a brief overview of how each type of injury works and how the Second Injury Fund bridges the gap between the two.

Scheduled Member Injuries

To put it simply, scheduled member injuries are injuries to a specific “member,” or body part, such as an arm or a leg. The benefits you can receive under this type of payment are limited and very rigidly calculated.

If you sustain a scheduled member injury, you receive weekly workers’ compensation benefits until your condition is no longer improving. Then, you will undergo a medical examination to determine how much the injury will reduce the function of that body part moving forward. 

Based on this exam, you will receive a lump sum payout that is based on how limited you are in your ability to use that specific body part. Iowa law has a list of the maximum number of weeks of benefits you can receive for each body part. The formula does not take into account whether you are still able to perform your job duties. 

Industrial Disability Injuries

Industrial disability injuries, also known as “body as a whole” injuries, are calculated much differently. These injuries are often injuries that affect your entire body, such as back injuries. 

Once you have reached the point where medical treatment is no longer improving your disability, you will also receive a payout. However, while a scheduled member injury is based on a strict formula, industrial disability takes many other factors into account. You will receive benefits based on how your disability impacts your earning capacity. Factors include age, education, work history, and your ability to perform your previous job.  

These types of injuries often have much larger payouts because of the large effect they have on your earning capacity. They can extend up to 500 weeks. Or, if your disability will prevent you from working permanently, the benefits can last for the rest of your life. 

How the Second Injury Fund Bridges the Gap

A person with an injury to one leg may still be able to work in a limited capacity, but injuries to both legs may prevent them from working entirely. However, Iowa’s workers’ compensation law treats the second injury in isolation. That means the injury itself will likely only qualify for a scheduled member payout from the workers’ employer.

The Second Injury Fund comes in after this payout is calculated. The state will look at how both injuries affect the workers’ overall earning capacity based on the industrial disability formula. If the worker is eligible for additional industrial disability benefits, the Second Injury Fund fills in this gap.

The amount of additional benefits you may receive will vary widely based on your specific case. These calculations are often very complicated and are best approached with the help of a seasoned workers’ compensation attorney.

How to Apply for Second Injury Fund Benefits

The Iowa Treasurer’s Office oversees the state’s Second Injury Fund. Due to the complexity of obtaining these benefits, we recommend partnering with an experienced workers’ comp attorney before proceeding.

The payment process for Second Injury Fund benefits is also unique. To receive these additional benefits, you must first receive all of the scheduled weekly permanent partial disability (PPD) benefits from your employer. Following that date, you are eligible to receive the state benefits. 

Again, it is important to note that this type of workers’ compensation claim is often very complex. If you believe you have a Second Injury Fund claim, we highly recommend working with a workers’ comp attorney to navigate your case. 

Don’t Leave Money on the Table. Contact Schott Mauss & Associates Today.

If you’ve been injured at work, you deserve to receive all of the benefits you are eligible for. That’s where our experienced Iowa workers’ compensation attorneys come in. Contact Schott Mauss & Associates today to talk about your case — with no fees unless you win.