If temporary disability has been paid at the wrong rate, what is the required remedy?

If temporary disability has been paid at the wrong rate, what is the required remedy?

• A. pay the amount due
• B. pay the amount due with a self-imposed 10% penalty
• C. begin paying at the correct rate
• D. begin paying the correct rate plus 10% penalty for delay

Answer: (B)

When temporary disability benefits are calculated at the wrong rate, the payer must make the employee whole by paying the difference at the correct rate and also include a 10% penalty on the amount due. This penalty serves to compensate the employee for the mispayment and deter future errors. Merely starting at the correct rate going forward doesn’t address the past underpayment, and a separate delay penalty isn’t the standard remedy for a rate miscalculation. So the required remedy is to pay the amount due at the correct rate plus the 10% penalty on that amount.

When temporary disability benefits are calculated at the wrong rate, the payer must make the employee whole by paying the difference at the correct rate and also include a 10% penalty on the amount due. This penalty serves to compensate the employee for the mispayment and deter future errors. Merely starting at the correct rate going forward doesn’t address the past underpayment, and a separate delay penalty isn’t the standard remedy for a rate miscalculation. So the required remedy is to pay the amount due at the correct rate plus the 10% penalty on that amount.