A chef with average weekly earnings of $1,300 per week is injured on May 16, 2010. After this period of temporary disability he returns to work part time earning $450 per week. What is the correct wage loss TD rate?

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Prepare for the California Self‑Insurance Plans (SIP) Exam with our interactive quiz. Benefit from multiple-choice questions, detailed explanations, and essential tips to enhance your knowledge and succeed in your exam!

Multiple Choice

A chef with average weekly earnings of $1,300 per week is injured on May 16, 2010. After this period of temporary disability he returns to work part time earning $450 per week. What is the correct wage loss TD rate?

Explanation:
Wage loss when working part-time is paid as two-thirds of the difference between pre-injury earnings and post-injury earnings. This ensures the worker still receives some TD benefits for the income they’ve lost while disabled, without exceeding the normal TD maximum. Compute: - Pre-injury earnings: 1,300 per week - Post-injury earnings while partially disabled: 450 per week - Wage loss difference: 1,300 − 450 = 850 - Wage loss TD rate: 2/3 × 850 = 566.67 per week This amount is below the TD maximum based on the average weekly wage, so no cap applies. The correct wage loss TD rate is 566.67 per week.

Wage loss when working part-time is paid as two-thirds of the difference between pre-injury earnings and post-injury earnings. This ensures the worker still receives some TD benefits for the income they’ve lost while disabled, without exceeding the normal TD maximum.

Compute:

  • Pre-injury earnings: 1,300 per week

  • Post-injury earnings while partially disabled: 450 per week

  • Wage loss difference: 1,300 − 450 = 850

  • Wage loss TD rate: 2/3 × 850 = 566.67 per week

This amount is below the TD maximum based on the average weekly wage, so no cap applies. The correct wage loss TD rate is 566.67 per week.

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