Temporary disability payments are calculated as two-thirds of the wage loss, up to the maximum TD rate in effect for the injury year.

Temporary disability payments are calculated as two-thirds of the wage loss, up to the maximum TD rate in effect for the injury year.

• A. One-half of wage loss
• B. Two-thirds of wage loss
• C. Full wage loss
• D. Three-quarters of wage loss

Answer: (B)

Temporary disability payments are designed to replace part of what a worker loses in wages while they’re unable to work due to an injury. The amount isn’t a flat portion of wages; it’s two-thirds of the wage loss, and it’s capped at the maximum TD rate for the injury year. Wage loss means the difference between what the worker earned before the injury and what they earn after the injury (or would have earned if they were able to work). So, you take two-thirds of that loss, but if that result would exceed the yearly maximum TD rate, you receive only up to that cap. For example, if pre-injury earnings are higher than post-injury earnings by $400, two-thirds of $400 is about $267 per week, provided that amount doesn’t exceed the cap for that year. If the cap is lower than $267, you’d receive the cap. This is why two-thirds of wage loss, with a cap, is the correct calculation.

Temporary disability payments are designed to replace part of what a worker loses in wages while they’re unable to work due to an injury. The amount isn’t a flat portion of wages; it’s two-thirds of the wage loss, and it’s capped at the maximum TD rate for the injury year. Wage loss means the difference between what the worker earned before the injury and what they earn after the injury (or would have earned if they were able to work). So, you take two-thirds of that loss, but if that result would exceed the yearly maximum TD rate, you receive only up to that cap. For example, if pre-injury earnings are higher than post-injury earnings by $400, two-thirds of $400 is about $267 per week, provided that amount doesn’t exceed the cap for that year. If the cap is lower than $267, you’d receive the cap. This is why two-thirds of wage loss, with a cap, is the correct calculation.