If you know an employee will have permanent disability after back surgery but are unsure of the PD amount 14 days after the employee returns to work, you should:

• A. Stop Benefits
• B. Pay Estimated Benefits Up To 50%
• C. Pay Full PD Amount
• D. Do Nothing

Answer: (B)

When a permanent disability is anticipated but the exact amount isn’t known yet, you can provide an interim PD payment rather than waiting for a final impairment rating. California allows paying an estimated permanent disability benefit up to 50% of the eventual PD amount while the rating is being determined. This helps the employee who has returned to work by providing some income support without risking a full overpayment before the final rating is issued. Once the impairment rating is completed, you reconcile the amounts: if the actual PD is higher, pay the difference; if lower, any overpayment can be adjusted or recovered. Stopping benefits, paying the full PD amount upfront, or doing nothing would not align with how interim PD needs are handled, so the best course is to provide an estimated PD benefit up to 50% while awaiting the final rating.