An employee has an admitted injury resulting in permanent disability of 72% and is guilty of serious and willful misconduct. What should the board award?

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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

An employee has an admitted injury resulting in permanent disability of 72% and is guilty of serious and willful misconduct. What should the board award?

Explanation:
Permanent disability awards in California workers’ compensation can be reduced when the employee is found to have engaged in serious and willful misconduct. The reduction is 50 percent, meaning the award is halved from what it would otherwise be. In this case, the impairment rating is 72%. Halving that rating leaves 36% in value, but the board’s award is still expressed as the monetary value corresponding to that half of the impairment. So the proper award is the dollar value of one-half of the 72% PD, not the full 72% or nothing.

Permanent disability awards in California workers’ compensation can be reduced when the employee is found to have engaged in serious and willful misconduct. The reduction is 50 percent, meaning the award is halved from what it would otherwise be.

In this case, the impairment rating is 72%. Halving that rating leaves 36% in value, but the board’s award is still expressed as the monetary value corresponding to that half of the impairment. So the proper award is the dollar value of one-half of the 72% PD, not the full 72% or nothing.

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