An employee suffers an injury in 1992 resulting in a permanent disability award; the Appeals Board finds the injury was a result of serious and willful misconduct. The compensation otherwise recoverable may be reduced by:

• A. one-half
• B. No reduction
• C. No greater than 75%
• D. None of the above

Answer: (B)

The key idea is that a finding of serious and willful misconduct by the employee does not reduce the amount of a permanent disability award in this context. Permanent disability benefits are determined by the medical impairment rating and the statutory schedule, and that calculation isn’t altered by the employee’s misconduct. The board’s finding can lead to other consequences (like penalties or disqualification for some benefits), but it does not cut into the amount of the permanent disability indemnity. Therefore, the compensation otherwise recoverable cannot be reduced.