What is the definition of "impairment rating" in workers' compensation?

The definition of "impairment rating" in workers' compensation specifically refers to a percentage that reflects the permanent impairment a worker has sustained due to a work-related injury or illness. This rating is conducted following an evaluation of the individual's medical condition, and it quantifies the extent of the loss of function or ability that results from the injury, often using established medical criteria.

An impairment rating is critical in determining the compensation a worker may receive, as it is a way to translate the impact of the impairment into a tangible percentage that can influence settlement amounts or benefits. Accordingly, it plays a significant role in the workers' compensation process by providing a standardized assessment of how an injury affects the individual's physical capabilities in a long-term context.

In contrast, the other options describe different aspects of the workers' compensation system, such as full recovery assessments or measures of temporary disability, which do not specifically address the permanent nature of the impairment characteristic of an impairment rating.