What is his TD rate for an injury in 2005?

What is his TD rate for an injury in 2005?

• A. $650
• B. $600
• C. $700
• D. $500

Answer: (A)

Temporary Disability benefits in California are two-thirds of the injuried worker’s average weekly wage (AWW), but there is a weekly maximum set by law. For injuries in 2005, the maximum TD rate was $650 per week. So the TD rate is the lesser of two-thirds of the AWW or $650. In this case, the rate is driven to the maximum, $650, which is why that choice is correct. If two-thirds of the AWW had been below $650, that lower amount would be paid instead; the cap only comes into play when the calculated two-thirds would exceed it.

Temporary Disability benefits in California are two-thirds of the injuried worker’s average weekly wage (AWW), but there is a weekly maximum set by law. For injuries in 2005, the maximum TD rate was $650 per week. So the TD rate is the lesser of two-thirds of the AWW or $650. In this case, the rate is driven to the maximum, $650, which is why that choice is correct. If two-thirds of the AWW had been below $650, that lower amount would be paid instead; the cap only comes into play when the calculated two-thirds would exceed it.