What are lost wages in Workers' Compensation Insurance?

• A. The Income An Employee Earns After Returning To Work
• B. The Wages Paid To Employees For Training
• C. The Income An Employee Loses Due To Being Unable To Work As A Result Of A Work-Related Injury Or Illness
• D. The Employer's Overhead Costs

Answer: (C)

Lost wages are the income an employee loses due to being unable to work as a result of a work-related injury or illness. In workers' compensation, these are paid as wage replacement benefits, separate from medical benefits. The amount and duration depend on state law and the employee’s pre-injury earnings, and benefits typically replace a portion of those wages and may be capped. Benefits end when the employee can return to work or when the benefit period ends. This is why the description of lost wages fits best: it focuses on the income lost during time off work, not wages earned after returning, wages paid for training, or the employer’s overhead.