An injured employee unable to work while recovering from a workplace injury is entitled to temporary disability (TD) benefits. How is the TD rate generally calculated?
a.Exactly one-half of the worker's net take-home pay after federal income tax, state income tax and payroll deductions are withheld
b.A flat $400 per week for every injured worker regardless of actual earnings
c.Two-thirds (about 66 2/3%) of the worker's average weekly wage, subject to statutory minimum and maximum
d.One hundred percent of the worker's pre-injury wages, with no maximum cap
Explanation
Temporary disability replaces a portion of lost wages while the worker recovers and cannot work. It is paid at two-thirds of the average weekly wage, subject to a statutory minimum and a maximum that is adjusted each year by the State Average Weekly Wage. TD is not a full wage replacement and it is not taxable.
Law Reference: Cal. Labor Code §4453 (TD), §4658 (PD)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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