An employee earning $800 per week is injured and receives workers' compensation benefits at 80% of their average weekly wage. How much will the employee receive weekly in workers' compensation benefits?
Correct Answer
B) $640
Workers' compensation typically pays 80% of the average weekly wage: $800 × 0.80 = $640 per week.
Why This Is the Correct Answer
$800 × 0.80 = $640. Michigan workers' compensation pays 80% of the employee's average weekly wage for temporary total disability, which in this case equals $640 per week.
Why the Other Options Are Wrong
Option A: $720
$720 would result from applying a 90% rate ($800 × 0.90). The question explicitly states the benefit rate is 80%, so this figure overstates the benefit.
Option C: $600
$600 would result from applying a 75% rate ($800 × 0.75). This is a common distractor that does not match the 80% statutory rate specified in the question.
Option D: $800
$800 equals the full weekly wage, which would be appropriate only if the benefit rate were 100%. Workers' compensation intentionally pays less than full wages (80% here) to encourage return to work while still providing income support.
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