Which condition triggers the 1/2 reduction in compensation?

• A. Death
• B. PD of 75%
• C. Serious and willful misconduct
• D. Willful refusal to secure payment

Answer: (C)

The rule being tested is that a 50% reduction in compensation applies when the employee’s serious and willful misconduct causes or worsens the injury. This remedy is designed to deter intentional or flagrant behavior that undermines safety or job duties, so when the injury results from such conduct, the benefits are halved for the period the misconduct exists. That’s why choosing serious and willful misconduct is the best answer.

Death does not trigger a half-reduction; it ends the employee’s ability to collect for themselves and shifts compensation to survivors. A 75% permanent disability rating is a measurement of disability, not a penalty reducing pay. Willful refusal to secure payment is a separate issue that can lead to penalties, but not the standard 50% reduction tied to misconduct.