If the employer provides a wage statement showing irregular earnings, what is the correct disability rate?

• A. Two thirds of earnings the week of injury
• B. Minimum temporary disability
• C. Maximum temporary disability
• D. 2/3 of actual weekly earnings averaged over the period

Answer: (D)

The determination of the disability rate when an employer provides a wage statement showing irregular earnings focuses on capturing a fair representation of the employee's earning capacity. In this context, averaging the actual weekly earnings over a specified period provides a more accurate reflection of that employee's typical income.

Choosing to calculate the disability rate as two-thirds of the actual weekly earnings averaged over the period directly considers the variations in income that the employee experienced. This method acknowledges irregular earnings, ensuring that the employee's compensation during their disability period is aligned with their usual financial situation rather than potentially skewed figures from isolated weeks or periods.

Using this approach is particularly beneficial for individuals whose earnings fluctuate due to part-time work, overtime, or seasonal employment. It ensures their compensation during a disability effectively mirrors their true economic status prior to the disability claim. This result promotes fairness and equity in compensation, making it a well-suited choice for such scenarios.