Which statement correctly describes the reduction of compensation due to serious and willful misconduct?

• A. The reduction is 1/2 unless death, under 16 at DOI, or PD >= 70%
• B. The reduction is 1/3 unless death
• C. There is no reduction for serious and willful misconduct
• D. The reduction is determined by the court on a case-by-case basis

Answer: (A)

When serious and willful misconduct by the employee is involved, the standard rule is to reduce the compensation payable by 50 percent. There are specific exceptions to this reduction: if the employee dies, if the employee was under 16 years old at the time of injury, or if the permanent disability rating is 70 percent or greater. In those situations, the 50 percent cut does not apply. This is why the statement that the reduction is one-half unless death, being under 16 at the date of injury, or a permanent disability of 70 percent or more is correct. The other options aren’t correct because there isn’t a blanket 1/3 reduction, nor is there no reduction in all cases, nor is the reduction decided on a case-by-case basis by the court.