Temporary disability is calculated as which portion of AWE?

Prepare for the California SIP Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to boost your confidence. Get exam-ready now!

Multiple Choice

Temporary disability is calculated as which portion of AWE?

Explanation:
Temporary disability benefits are meant to replace a portion of earnings while you can’t work because of a work-related injury or illness. In California, the amount is calculated as two-thirds of the Average Weekly Earnings (AWE). This 66.7% rate is the standard for temporary disability, not half, not a third, and not the full AWE. The payout is also subject to statutory minimum and maximum weekly amounts and typically begins after a waiting period. (If you return to work but earn less, there’s a separate calculation for temporary partial disability based on the difference between AWE and actual earnings.)

Temporary disability benefits are meant to replace a portion of earnings while you can’t work because of a work-related injury or illness. In California, the amount is calculated as two-thirds of the Average Weekly Earnings (AWE). This 66.7% rate is the standard for temporary disability, not half, not a third, and not the full AWE. The payout is also subject to statutory minimum and maximum weekly amounts and typically begins after a waiting period. (If you return to work but earn less, there’s a separate calculation for temporary partial disability based on the difference between AWE and actual earnings.)

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