Which statement about liability for permanent disability is correct?

• A. ER pays none of the PD.
• B. ER pays PD only if the disability is fully caused by work.
• C. ER pays PD for any disability connected to work, regardless of cause.
• D. ER pays only the portion of PD that is directly caused by the injury.

Answer: (D)

In California workers’ compensation, what you owe for permanent disability is determined by apportionment. The employer is responsible only for the portion of the permanent disability that is caused by the industrial injury. If nonwork factors or preexisting conditions contribute to disability, that portion is apportioned away from the current employer's liability. So the employer pays the PD amount that is directly attributable to the work injury, not the entire PD if some of it stems from nonindustrial factors. For example, if the overall impairment is partly due to a preexisting condition, the employer would cover only the portion tied to the work injury. This is why the correct statement says the employer pays only the portion of permanent disability directly caused by the injury.