Built by Richard Vaughn, CPCU, ARM, AIS — 35 years in commercial lines P&C, workers' comp TPA founder, and independent insurance consultant.

Return-to-Work / Transitional Duty Offer Letter

A written offer of transitional duty is the single most effective tool an employer has to control workers' compensation costs. This letter documents the offer, the restrictions it accommodates, the wage, and the start date, and the program outline sets the policy once so every supervisor follows it.

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Who it is for

HR managers, safety directors, small-business owners, and self-insured employers.

What is inside

  • Offer letter with placeholders for restrictions, duties, hours, wage, start date, and acceptance or refusal
  • Program outline: purpose, eligibility, duration limits, supervisor duties, and communication with the adjuster
  • Transitional duty task bank by department
  • Refusal acknowledgment and adjuster notification language
  • Notes on how a bona fide offer affects indemnity benefits (varies by state)
AI prompt pack: fill this template with ChatGPT or Claude

Paste the prompt below into ChatGPT or Claude together with your own documents (declarations pages, certificates, P&L, contracts). It is written to return results in this template's column order.

You are a workers' compensation claims consultant. Here are the physician's restrictions for my injured employee: [paste]. Using the transitional duty task bank in my Return-to-Work Offer Letter document, propose three assignments that fit the restrictions, then draft the offer letter with duties, hours, and wage filled in.

Check anything an AI tool returns against the source document before you rely on it. The prompt is a starting point, not a substitute for reading the policy.

Questions

Why does a written offer matter?

In most states, an injured worker who refuses a bona fide offer of suitable work within their restrictions can lose temporary disability benefits. The offer must be in writing, specific, and within the physician's restrictions to count. Rules vary by state; confirm the requirements that apply to the employee and the offer.

What if the restrictions change?

Issue a revised offer. The letter has a restrictions section you update with each physician's note, and the program outline requires supervisors to check restrictions weekly.

Can transitional duty be at reduced pay?

Usually, and the difference may be partly covered by temporary partial disability benefits. The letter states the wage explicitly so the adjuster can calculate the benefit.

How long should transitional duty last?

Programs commonly cap it at 60 to 90 days to prevent permanent light-duty positions from forming. The outline includes a duration limit you set.

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