The impairment standard is adjusted to account for which factors?

• A. Education level and tenure
• B. Current wage rate and age
• C. Diminished future earnings, occupation, and age at the time of the injury
• D. Medical costs and therapy duration

Answer: (C)

Impairment ratings are adjusted to reflect the economic effect of the injury on a worker’s earning capacity, not just the medical loss. The proper factors are diminished future earnings, the worker’s occupation, and the age at the time of the injury. Diminished future earnings captures how the impairment will reduce lifetime income. The occupation matters because the same level of impairment can have different consequences depending on job demands and available alternative work. Age is important because younger workers have more years to work and potentially recover earnings, while older workers have fewer remaining work years, which changes the overall financial impact. Education level or tenure aren’t the primary drivers of this adjustment, and current wage rate or medical costs reflect other aspects (immediate pay or treatment expenses) that don’t directly translate impairment into long-term earning capacity.