If an employee sustains a permanent disability and the injury is found to result from serious and willful misconduct, the compensation otherwise recoverable may be reduced by:

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

Answer: (C)

When the injury is caused by the employee’s serious and willful misconduct, the amount of permanent disability benefits that would otherwise be payable can be reduced by one-half. This reflects a statutory penalty designed to deter intentional unsafe conduct by the employee and shift some burden when the employee knowingly violates safety rules. Importantly, this reduction targets the permanent disability portion of compensation, not necessarily medical benefits or other types of disbursements. Therefore, the best answer is that the compensation otherwise recoverable may be reduced by 50%.