Which statement accurately describes how the temporary disability rate is determined?

Which statement accurately describes how the temporary disability rate is determined?

• A. Two-thirds of average weekly earnings, limited by the annual maximum
• B. Two-thirds of the minimum wage
• C. The full weekly wage without cap
• D. A fixed rate set by the employer

Answer: (A)

Temporary disability benefits are determined by taking two-thirds of the employee’s average weekly earnings, calculated from the base period, and then applying a state-imposed cap on the weekly amount. This means the benefit rises with earnings only up to the maximum weekly benefit; earnings beyond that cap don’t increase the payment. The rate is set by state law (through the relevant department) and is not based on the minimum wage, not the full weekly wage, and not fixed by the employer.

Temporary disability benefits are determined by taking two-thirds of the employee’s average weekly earnings, calculated from the base period, and then applying a state-imposed cap on the weekly amount. This means the benefit rises with earnings only up to the maximum weekly benefit; earnings beyond that cap don’t increase the payment. The rate is set by state law (through the relevant department) and is not based on the minimum wage, not the full weekly wage, and not fixed by the employer.