A finding that the injuries resulted from the injured EE's serious and willful misconduct means:

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

Answer: (A)

When an employee’s injuries are found to result from the employee’s serious and willful misconduct, California law imposes a penalty: the amount of compensation that would otherwise be payable is reduced by one-half. This reduction applies to the indemnity portion (the wage-replacement benefits) of the workers’ compensation award, while medical benefits generally continue. The rule is a punitive measure intended to discourage willful disregard of safety rules, and it does not depend on the worker’s age or on how large the disability is. So the correct understanding is that the compensation otherwise payable shall be reduced one-half.