The employee is guilty of serious and willful misconduct with a permanent disability of 50%. What should you do?

• A. Immediately reduce benefits by 50%
• B. Obtain an order from the WCAB before reducing
• C. Reduce reserves due to potential misconduct
• D. Document the file and go on to other work

Answer: (B)

In cases of serious and willful misconduct, the proper procedure involves obtaining an order from the Workers' Compensation Appeals Board (WCAB) before making any reductions to benefits. Serious and willful misconduct can complicate the determination of benefit entitlements, and legal protocol requires a formal order from the WCAB to ensure that any adjustments to benefits are justified and in accordance with the law.

This approach safeguards both the rights of the employee and the employer's ability to manage liability appropriately. It ensures that any decision to reduce benefits is legitimate and backed by legal authority, thus preventing potential disputes or further complications down the line. Failure to follow this procedure could result in legal challenges or undue financial exposure for the employer.

In contrast, immediately implementing a reduction, adjusting reserves solely based on perceived misconduct, or simply documenting the file without legal guidance could expose the employer to significant risks and liability, violating workers' compensation laws and regulations. Each of those options lacks the necessary legal framework to adequately address the nuances of serious and willful misconduct in a work-related injury case.