A finding that the injuries results from the injured EE's serious and willful misconduct means:

A finding that the injuries results from the injured EE's serious and willful misconduct means:

• A. A 50% reduction in the applicant's indemnity benefits.
• B. The compensation otherwise payable shall be reduced by one-half.
• C. 10% reduction if the injury causes PD greater than 70%.
• D. No reduction if the EE is under 18 years of age at the time of injury.

Answer: (B)

In California workers’ compensation law, if an injury results from the injured employee’s serious and willful misconduct, the compensation otherwise payable is reduced by one-half. This penalty applies to wage-replacement benefits (indemnity), while medical benefits continue to be provided. The reduction is a flat 50% of what would otherwise be due, independent of disability level or age. For example, if the employee would normally receive $2,000 in indemnity benefits, only $1,000 would be paid, with medical costs unaffected. This exact wording—“the compensation otherwise payable shall be reduced by one-half”—is why this option is the correct one.

In California workers’ compensation law, if an injury results from the injured employee’s serious and willful misconduct, the compensation otherwise payable is reduced by one-half. This penalty applies to wage-replacement benefits (indemnity), while medical benefits continue to be provided. The reduction is a flat 50% of what would otherwise be due, independent of disability level or age. For example, if the employee would normally receive $2,000 in indemnity benefits, only $1,000 would be paid, with medical costs unaffected. This exact wording—“the compensation otherwise payable shall be reduced by one-half”—is why this option is the correct one.