How is earning capacity calculated from the percentage of impairment?

• A. 0-5%=100%; 6-25%=100%-imp%; 26-50%=100%-imp%(1.25); 51-100%=100%-imp%(1.50)
• B. 0-5%=100%-imp%; 6-25%=100%; 26-50%=100%-imp%(1.25); 51-100%=100%-imp%(1.50)
• C. 0-5%=100%; 6-25%=100%-imp%(1.25); 26-50%=100%-imp%(1.50); 51-100%=100%-imp%
• D. 0-5%=100%; 6-25%=100%; 26-50%=100%-imp%; 51-100%=100%-imp%(1.50)

Answer: (A)

Earning capacity is determined by a tiered schedule that converts the impairment percentage into a percentage of pre‑injury earnings. For small impairments (0-5%), the worker’s earning capacity remains 100%. When impairment is in the 6-25% range, capacity is simply 100% minus the impairment percentage, reflecting a straightforward loss of earning ability.

For more substantial impairment (26-50%), the remaining capacity after subtracting the impairment is multiplied by 1.25. So you take (100% − impairment%) and multiply by 1.25 to get the earning capacity. Finally, with the most severe impairments (51-100%), you take the remaining capacity and multiply by 1.50, giving (100% − impairment%) × 1.50.

This yields the percent of pre‑injury earnings the worker can earn, and explains why, for example, a 30% impairment would produce (100 − 30) × 1.25 = 70 × 1.25 = 87.5% of pre‑injury earnings, while a 75% impairment would be (100 − 75) × 1.50 = 25 × 1.50 = 37.5%.