The EE is guilty of serious & willful misconduct. His PD is 50%. What is the appropriate action?

• A. Obtain an Order from the WCAB before reducing
• B. Immediately reduce benefits by 50%
• C. Reduce reserves due to the potential serious & willful misconduct
• D. Document the file and go on to other work

Answer: (A)

When serious and willful misconduct by the employee raises questions about reducing permanent disability benefits, the action cannot be taken unilaterally. In California workers’ compensation, any reduction or adjustment of benefits due to misconduct must be authorized by a WCAB order after proper proceedings. This ensures due process, that the misconduct is proven, and that the appropriate remedy is determined by the board.

So the correct path is to pursue a WCAB action to obtain an order that may authorize a reduction, rather than directly cutting benefits, reducing reserves, or simply moving on. In the meantime, document the facts and preserve the file to support the board proceeding.