What was the weekly maximum TD rate in 2010 used to calculate indemnity?

What was the weekly maximum TD rate in 2010 used to calculate indemnity?

• A. $900
• B. $986.69
• C. $1,000
• D. $1,200

Answer: (B)

Temporary Disability indemnity in California is calculated as two-thirds of the employee’s average weekly wage, but there is a weekly maximum cap, the maximum TD rate. In 2010 that cap was 986.69 dollars per week. When computing indemnity, you take the smaller of two-thirds of the AWW or this cap, so the weekly benefit cannot exceed 986.69. That’s why this figure is the correct answer—the 2010 maximum rate established for TD benefits. The other numbers aren’t the official 2010 cap.

Temporary Disability indemnity in California is calculated as two-thirds of the employee’s average weekly wage, but there is a weekly maximum cap, the maximum TD rate. In 2010 that cap was 986.69 dollars per week. When computing indemnity, you take the smaller of two-thirds of the AWW or this cap, so the weekly benefit cannot exceed 986.69. That’s why this figure is the correct answer—the 2010 maximum rate established for TD benefits. The other numbers aren’t the official 2010 cap.