A finding that the injuries results from the injured employee's serious and willful misconduct means which of the following?

• A. A 50% reduction in indemnity benefits
• B. The compensation otherwise payable shall be reduced by one-half
• C. 10% reduction if the injury causes PD greater than 70%
• D. No reduction if the EE is under 18 years of age at the time of injury

Answer: (B)

When an injury is caused by the employee’s serious and willful misconduct, California law reduces the indemnity portion of the compensation by 50%. This penalty is designed to deter intentional safety violations while still allowing medical treatment to be provided. The wording that best captures this effect is that the compensation otherwise payable shall be reduced by one-half, which means the disability benefits (temporary or permanent) are halved, while medical benefits continue unchanged. There is no age-based exemption, and there isn’t a separate 10% reduction tied to a disability percentage.