A seasonal employee works six months a year and is a max earner; while not working he is a min earner. What is his TD rate out of season?

• A. Min
• B. Max
• C. two-thirds of the average weekly earnings
• D. two thirds of average annual earnings from all employment

Answer: (D)

In California, temporary disability benefits are calculated as two-thirds of the worker’s earnings base, and for seasonal workers the earnings base used for out-of-season rates is the average annual earnings from all employment. This approach keeps the TD rate fair over the year when earnings swing with the seasons. So you take the total earnings for the year from all jobs, divide by 52 weeks to get the average weekly earnings, then multiply by two-thirds to get the TD rate. That’s why the correct choice is two-thirds of average annual earnings from all employment. Using only weekly earnings during the off-season would distort the benefit for someone with half-year max and half-year min earnings.