In the scenario where an employee is temporarily disabled and later incarcerated for an unrelated crime, what is the recommended handling of temporary disability payments?

• A. Cut off temporary disability payments
• B. Continue to pay temporary disability at minimum
• C. Continue to pay temporary disability
• D. Cut off temporary disability, but it accrues

Answer: (C)

Temporary disability benefits are designed to replace lost wages while the employee is medically unable to work due to a work-related injury, and the entitlement continues as long as the medical determination shows a temporary disability. Being incarcerated for an unrelated crime does not change the worker’s entitlement to those benefits. The injury and disability status drive the payment, not the employee’s criminal status. Therefore, the proper approach is to continue paying temporary disability benefits for the allowable period, subject to any wage offsets if the employee earns wages during the period. Cutting off the benefits or treating them as accruing if suspended would undermine the purpose of wage replacement during a genuine temporary disability.