A worker earns $2000 per week for six months and collects unemployment benefits the rest of the year. He returns to work and is injured on his first day back. What is the correct total TD rate?

• A. 881.66
• B. Max TD
• C. $840.00
• D. max TD during the season and $666.67 out of season

Answer: (D)

Temporary Total Disability benefits in California are normally two-thirds of the worker’s average weekly wage, but there is a cap: during any period when earnings are high, benefits cannot exceed the maximum weekly TD rate. For seasonal workers, this creates two different rates over the year: a seasonal maximum when the worker is earning a high weekly wage, and the standard two-thirds rate during the off-season.

Here, the worker earns $2,000 per week for 26 weeks, then has no earnings (unemployment benefits aren’t counted as wages for this purpose) for the remaining 26 weeks. The average weekly wage over the year is the total annual earnings divided by 52: (2000 × 26) / 52 = 52,000 / 52 = 1,000. Two-thirds of that is $666.67 per week. However, during the high-earning season, the TD benefit is capped at the maximum TD rate, which is higher than $666.67. Therefore, the correct total TD rate pattern is the maximum TD during the season and $666.67 out of season.