TD for an injury in 2012 was paid at an incorrect rate (too low). What should you do?

• A. pay the amount due
• B. pay the amount due with a self-imposed penalty of 10%
• C. begin paying at the correct rate
• D. begin paying at the correct rate plus 10% for the unreasonable delay

Answer: (B)

When temporary disability benefits have been underpaid, the right move is to make the employee whole by paying the amount actually due for the period in question and adding a 10% self-imposed penalty on the underpaid amount. This compensates for the past shortfall and also signals corrective action to prevent future underpayments. After the retroactive payment is made, you should continue paying at the correct rate going forward.

Simply paying only the amount due ignores the penalty, and starting at the correct rate without back payment leaves the employee underfunded for the period that was underpaid. Adding the penalty with the retroactive payment ensures both proper compensation and accountability.