An injured worker's medical expenses total $15,000 and lost wages are $8,000. What is the total workers compensation liability for the employer?
Correct Answer
D) $23,000 (wages plus medical)
Workers compensation covers both medical expenses ($15,000) and wage replacement ($8,000) for a total liability of $23,000.
Why This Is the Correct Answer
Workers compensation covers two primary categories of loss: medical expenses (100% of reasonable and necessary treatment) and wage replacement (typically a percentage of average weekly wage during disability). Adding the medical liability of $15,000 and the wage replacement liability of $8,000 produces a total employer liability of $23,000.
Why the Other Options Are Wrong
Option A: $15,000 (medical only)
$15,000 covers only the medical expenses and ignores the wage replacement component. Workers compensation is a comprehensive benefit system that addresses both categories of loss simultaneously.
Option B: $8,000 (wages only)
$8,000 covers only the lost wages and ignores the medical expenses. Paying only wages while leaving the employee responsible for medical costs would defeat the purpose of workers compensation coverage.
Option C: $30,000 (double damages)
$30,000 represents a 'double damages' theory that does not apply to standard workers compensation claims. Double or treble damages are remedies in certain civil litigation contexts, not in the workers compensation system.
Memory Technique
WC = Medical + Wages, nothing more, nothing less. $15,000 + $8,000 = $23,000. Workers compensation is additive, not punitive.
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