An injured employee with dependents is incarcerated for an unrelated offense. Temporary disability otherwise due is:

• A. No temporary is payable
• B. Paid to the employee
• C. Paid to the employee's dependents
• D. Paid to the State Treasury to the credit of the Uninsured Employers' Fund

Answer: (C)

Temporary disability benefits are meant to replace lost wages during recovery, and the system balances the worker’s needs with those who depend on the worker. In this scenario, the injured employee has dependents and is incarcerated for an unrelated offense, so the benefit is redirected to the employee’s dependents to ensure their ongoing support while the worker cannot work. This reflects the protective function of workers’ compensation, ensuring dependents aren’t left without financial help during the injury period. The other options don’t fit because temporary disability isn’t withheld entirely, and benefits aren’t directed to the employee in this situation, nor are they redirected to the State Treasury or the Uninsured Employers’ Fund.