Do not offset if the WC/PDB is paid directly to the employer by the WC/PDB payer or
turned over to the employer by the individual. Offset cannot be imposed while the
worker does not actually have use of the WC/PDB payment. If only part of the WC/PDB
is reimbursed to the employer, offset the portion received by the worker.
EXAMPLE 1: All WC paid to employer
A construction company pays weekly payments to injured workers and keeps their medical
insurance active. When WC claims are approved, the weekly WC payments are paid directly
to the employer. No offset applies because the employees do not receive the WC.
EXAMPLE 2: Employee has use of a portion of WC
The construction company in EXAMPLE 1 pays injured workers a maximum of $500 per week.
When a welder receives the state maximum WC of $650, the employer holds back $500
and pays the welder $150. Since the welder has use of the $150 per week, that amount