An employee works 40 hours a week and earns $16 per hour. He has a second job working 20 hours per week and earning $12 per hour. If he is unable to work both jobs what is the temporary disability rate for an injury in 2008 that occurs on the $12 per hour job?

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Multiple Choice

An employee works 40 hours a week and earns $16 per hour. He has a second job working 20 hours per week and earning $12 per hour. If he is unable to work both jobs what is the temporary disability rate for an injury in 2008 that occurs on the $12 per hour job?

Explanation:
Temporary disability benefits in California are two-thirds of the employee’s average weekly wage, with a cap set for the year. When someone has more than one job, the average weekly wage uses earnings from all employment. Here, weekly earnings from both jobs are 40 hours at $16 plus 20 hours at $12, which equals $880. Two-thirds of that would be $586.67. However, the 2008 maximum temporary disability rate is $480 per week, so the benefit is capped at $480. Thus, the temporary disability rate is $480 per week.

Temporary disability benefits in California are two-thirds of the employee’s average weekly wage, with a cap set for the year. When someone has more than one job, the average weekly wage uses earnings from all employment.

Here, weekly earnings from both jobs are 40 hours at $16 plus 20 hours at $12, which equals $880. Two-thirds of that would be $586.67. However, the 2008 maximum temporary disability rate is $480 per week, so the benefit is capped at $480.

Thus, the temporary disability rate is $480 per week.

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