Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

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What percentage of usual earnings does workers' comp provide?

50%
75%
100%
A percentage of usual earnings

The correct answer is: A percentage of usual earnings

Workers' compensation typically is designed to replace a portion of an injured worker's lost wages due to a work-related injury or illness. The correct answer indicates that it is not a fixed percentage like those listed individually in the other choices. Instead, workers' compensation provides a percentage of "usual earnings," which can vary based on the state regulations and the nature of the injury. In many states, this percentage usually aligns with a range around two-thirds of the employee's average weekly wage, varying slightly depending on specific circumstances, such as maximum benefit limits set by law. This allows the compensation to be tailored to the individual's income level and to help ensure that workers receive fair benefits that reflect their usual earnings while recovering from an injury. Furthermore, the other options suggest fixed percentages, which do not accurately depict how workers' compensation is structured. The compensation is based on the usual earnings of the individual, making the answer that denotes a percentage of usual earnings more comprehensive and accurate.