The employee is guilty of serious and willful misconduct. His permanent disability is 50%. You should:

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

Answer: (C)

Reduction of workers’ compensation benefits is permitted when the employee is guilty of serious and willful misconduct, but you cannot implement any change without an order from the Workers’ Compensation Appeals Board. With a 50% permanent disability, the proper course is to file with the WCAB to obtain a formal order that reduces benefits due to the misconduct, supported by evidence. Until the WCAB issues an order, continue paying benefits as they stand and document the misconduct and supporting facts. This ensures due process and that any reduction is legally authorized. The other options aren’t appropriate because changes to benefit levels must be made only through a WCAB order.