Key Takeaways
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No. A permanent partial disability payment, or PPD, is not the same as a settlement.
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PPD pays for permanent loss of body function from a covered work injury.
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The amount depends on your impairment rating and the payment table for your injury date.
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Receiving PPD in one lump sum does not, by itself, close your claim.
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A settlement is an agreement that may close wage-loss, medical, rehabilitation, or other benefits.
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Before signing a settlement, find out whether it closes future care for your knee.
A PPD payment for a torn ACL is a workers’ compensation benefit set by Minnesota law. It is not, by itself, a settlement.
Your PPD amount depends on your permanent impairment rating and the payment table that applies to your injury date. The insurer may dispute the rating or whether the impairment is related to your work injury.
A settlement is different. It is an agreement between you and the employer or insurer that resolves some or all of your claim.
Taking a PPD payment—even in one lump sum—does not, by itself, end your right to other workers’ compensation benefits. Minnesota law treats PPD payments and settlements separately. See Minn. Stat. § 176.101, subd. 2a, and Minn. Stat. § 176.521.
If you hurt your knee at work, Mottaz & Sisk Injury Law can help you understand the difference. Call 763.314.1112 to request a free consultation. Our main office in Coon Rapids serves injured workers in Anoka County and across the north metro.
How Does Minnesota Rate a Torn ACL?
PPD pays for permanent loss of function. It is different from payment for lost wages.
Minnesota uses medical schedules to assign a whole-body impairment rating. This is a percentage that measures permanent impairment under the state’s rules. It does not mean that the same percentage of your entire body has stopped working.
The rating must be based on objective medical evidence. See Minn. Stat. § 176.105.
Where Does the Rating Come From?
Minnesota’s PPD rules explain how ratings are selected and combined. The general rules appear in Minn. R. 5223.0010. The specific knee and lower-leg schedule appears in Minn. R. 5223.0510.
For an ACL injury, the schedule includes ratings for looseness in the ligament:
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Mild anterior laxity: 3 percent when the required examination findings are present.
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Severe anterior laxity: 5 percent when the required examination findings are present.
Other permanent knee problems, such as limited motion or certain meniscus injuries, may affect the rating. Rules control which ratings can be combined. They are not always simply added together.
Does Every ACL Tear Receive the Same Rating?
No. An MRI showing a torn ACL does not automatically establish a particular PPD rating. Neither does ACL surgery.
The rating depends on the lasting impairment and the medical findings required by the schedule. Two workers with similar injuries may have different ratings.
Ask the doctor to identify the rule used and explain which examination findings support the rating.
How Is the PPD Payment Calculated?
For injuries covered by the current system, the basic formula is:
Your impairment percentage × the matching dollar figure for your injury date
The dollar figure is a multiplier—not the amount you automatically receive.
The following are selected multipliers from Minnesota’s payment tables:
Table
|
Whole-body impairment rating |
Injuries from October 1, 2023, through September 30, 2026 |
Injuries on or after October 1, 2026 |
|---|---|---|
|
Less than 5.5% |
$114,260 |
$137,240 |
|
5.5% to less than 10.5% |
$121,800 |
$146,297 |
|
10.5% to less than 15.5% |
$129,485 |
$155,527 |
Earlier injuries use the payment rules that apply to their injury dates. The date you receive your rating or payment does not move your injury into a newer table. See Minn. Stat. § 176.101, subd. 2a and amendment history.
Tip: Check your injury date before checking the payment amount. Using the wrong table can lead to the wrong payment.
Is There a Limit on PPD?
Yes. Minnesota law does not allow PPD compensation for more than 100 percent disability of the whole body, even when more than one body part is involved.
When multiple ratings apply, special rules may require them to be combined rather than added. See Minn. Stat. § 176.101, subd. 2a(b), and Minn. Stat. § 176.105, subd. 4(f).
When and How Is PPD Paid?
PPD generally becomes payable when temporary total disability payments stop. PPD is not payable while those temporary total benefits are being paid.
There are two payment options:
Lump-Sum Payment
If payable PPD is requested in a lump sum, the law requires payment within 30 days.
The payment may be reduced to its present value using a discount rate of no more than 5 percent. That is not the same as a flat 5 percent deduction.
Installment Payments
If you do not choose a lump sum, PPD is paid in installments at the intervals and amount set by the statute, based on your temporary total disability rate.
These payment rules appear in Minn. Stat. § 176.101, subd. 2a(c).
Does Reaching MMI End Temporary Total Benefits Right Away?
No. Maximum medical improvement, or MMI, generally means your condition is not expected to improve significantly with further treatment.
Temporary total disability benefits generally stop 90 days after the legally required written MMI report is received or served. Other rules may stop those payments sooner, and exceptions may apply.
MMI does not, by itself, close your claim or end every type of benefit. See Minn. Stat. § 176.101, subd. 1(j).
Does a PPD Payment Close Future Medical Care?
Not by itself.
A regular PPD payment compensates you for permanent impairment. It does not automatically close your right to reasonable medical care for the covered injury.
However, medical benefits remain subject to legal requirements. The insurer may still dispute whether proposed treatment is reasonable, necessary, or related to the work injury. See Minn. Stat. § 176.135.
A settlement may close medical benefits. That is why you should understand any agreement before signing it.
What Is the Average Workers’ Comp Settlement for a Torn ACL?
An average settlement figure cannot tell you what your case is worth.
Settlement value depends on facts such as:
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Your past and possible future wage loss.
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Your work restrictions.
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Your permanent impairment rating.
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Your likely need for future knee treatment.
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Whether the insurer disputes your claim.
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Which benefits the agreement closes.
PPD follows a legal formula once the rating and applicable table are established. A settlement is negotiated and may cover much more than PPD.
A higher rating may affect negotiations, but it is only one part of the claim.
What Rules Apply to a Minnesota Workers’ Compensation Settlement?
A settlement must be in writing and meet Minnesota’s legal requirements.
When both sides have lawyers, the law generally treats the agreement as reasonable, fair, and consistent with workers’ compensation law. Some of these settlements do not require discretionary approval, although an award is still issued.
However, an agreement that fully closes medical or rehabilitation benefits requires approval by the commissioner or a compensation judge. Special rules also apply when a worker has a guardian or conservator. See Minn. Stat. § 176.521.
What Should You Ask Before Signing?
Ask:
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Does this settle only PPD, or other benefits too?
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Will future knee care stay open?
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Does it close wage-loss benefits?
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Does it close rehabilitation benefits?
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Is the impairment rating supported by the medical records?
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Was the correct payment table used?
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Is the insurer claiming a deduction for an earlier disability?
Do not assume a settlement can be undone later. Minnesota law allows settlement awards to be set aside only under limited circumstances.
Can an Earlier Knee Problem Reduce My PPD?
An earlier knee diagnosis does not automatically justify a deduction.
Minnesota law allows certain reductions for preexisting disability. The earlier disability must be clearly shown in a medical report or record made before the current work injury, and the other legal requirements must be met.
The employer must also provide the worker with the medical record used to support the deduction when PPD payments begin. See Minn. Stat. § 176.101, subd. 4a.
Frequently Asked Questions
1. Can I Receive PPD and Settle My Case Later?
Yes, receiving PPD does not, by itself, prevent a later settlement.
A later agreement may resolve remaining disputes or other benefits. Review its terms carefully to see what it covers and how earlier payments are treated.
2. Who Assigns My ACL Impairment Rating?
A doctor generally provides a rating using Minnesota’s rules. The insurer may arrange an independent medical examination and obtain a different opinion.
If the ratings differ, the disagreement may need to be resolved through the workers’ compensation process.
3. Can I Change Doctors?
Rules apply when changing your primary provider.
Outside a certified managed care plan, you generally may change primary providers once within the first 60 days after treatment begins without approval. Later changes generally require approval, although exceptions apply, such as certain referrals or a provider’s retirement.
Different rules apply within a certified managed care plan. Check before switching providers. See Minn. R. 5221.0430.
4. Does the 2026 Change Increase My PPD?
It depends on your injury date.
The higher table applies to injuries on or after October 1, 2026. It does not automatically increase payments for earlier injuries. See Minn. Stat. § 176.101, subd. 2a and amendment history.
5. What if My Knee Gets Worse After I Receive PPD?
You may qualify for additional benefits if the worsening is related to the covered injury and meets the legal requirements.
A higher permanent impairment rating may support additional PPD, with credit for benefits already paid. More medical care may also be available.
A prior settlement may affect these rights. Worsening symptoms do not automatically reopen benefits that were settled.
What Should I Do Next?
PPD pays for permanent loss of function. A settlement may close other benefits. Knowing the difference can help you protect your future knee care.
Before making a decision:
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Save your rating reports and payment notices.
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Confirm your injury date.
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Check which payment table applies.
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Keep your medical and work records.
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Get legal advice before signing a settlement, especially one that closes future medical care.
An experienced lawyer can review your rating and any offer. Mottaz & Sisk Injury Law offers a free consultation. We work on a contingency fee, so you pay no attorney fee unless we recover benefits for you, and we do not bill clients for costs. Call 763.314.1112 or schedule your free consultation online.
Reviewed by Jerry Sisk, Chair of the Workers’ Compensation Section of the Minnesota Association for Justice and Editor of the Minnesota Workers’ Compensation Deskbook.
Disclaimer: This content is for informational purposes only and is not legal advice. Every case is unique, and results may vary. Consult an attorney about your specific circumstances.
