An employee works 40 hrs a week and earns $16 per hour. He has a second job working 20 hrs 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 $16 per hour job?

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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 works 40 hrs a week and earns $16 per hour. He has a second job working 20 hrs 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 $16 per hour job?

Explanation:
Temporary disability payments in California are two-thirds of the employee’s average weekly wage (AWW). When the worker has more than one job, the AWW is based on all pre-injury earnings from both jobs. Here, weekly earnings are 40 hours at $16 ($640) plus 20 hours at $12 ($240), for a total of $880 per week. Two-thirds of $880 is 586.666..., which rounds to $586.67 per week. Therefore, the temporary disability rate is $586.67 per week.

Temporary disability payments in California are two-thirds of the employee’s average weekly wage (AWW). When the worker has more than one job, the AWW is based on all pre-injury earnings from both jobs.

Here, weekly earnings are 40 hours at $16 ($640) plus 20 hours at $12 ($240), for a total of $880 per week. Two-thirds of $880 is 586.666..., which rounds to $586.67 per week. Therefore, the temporary disability rate is $586.67 per week.

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