A worker is a maximum earner for an injury in 2006 and a TD payment is made in 2008. Which rate best applies?

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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 worker is a maximum earner for an injury in 2006 and a TD payment is made in 2008. Which rate best applies?

Explanation:
Temporary disability payments are capped by the maximum TD rate for the year in which the payment is made. A TD rate is the lesser of two-thirds of the worker’s average weekly wage and the annual maximum TD rate for that year. If the worker earns at the maximum, the TD benefit hits the yearly maximum. Since the TD payment is made in 2008, the applicable rate is the 2008 maximum TD rate. Even though the injury occurred earlier, the amount is governed by the year of payment, and a maximum earner will receive the 2008 maximum.

Temporary disability payments are capped by the maximum TD rate for the year in which the payment is made. A TD rate is the lesser of two-thirds of the worker’s average weekly wage and the annual maximum TD rate for that year. If the worker earns at the maximum, the TD benefit hits the yearly maximum.

Since the TD payment is made in 2008, the applicable rate is the 2008 maximum TD rate. Even though the injury occurred earlier, the amount is governed by the year of payment, and a maximum earner will receive the 2008 maximum.

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