Workers’ Compensation Penalties For Delayed Payments (Labor Code 5814)

As an injured worker, understanding the various labor codes that govern your rights and protections in the workplace is essential. When claims administrators are late paying workers’ compensation benefits, California Labor Code 5814 can increase the benefit to the injured worker up to 25% up to certain maximums.

What is Labor Code 5814?

Labor Code 5814 is a section of the California Workers’ Compensation Law that outlines the penalties for employers who are overdue in paying medical and indemnity benefits owed to an injured worker.

Specifically, this section states that if a claims adjuster fails to timely provide workers’ compensation benefits in the form of payments for medical bills, or payments to an injured employee, they will be subject up to a 25% penalty on the amount of benefits that were not paid up to a certain maximum. This penalty is paid to the injured worker and IN ADDITION to any other penalties or fines that may be imposed by the state against the claims administrator.

Understanding the penalties for violating Labor Code 5814

The penalty is intended to deter claims administrators from delaying the payment of benefits to the injured workers that are owed. Some penalties are automatically owed if not paid promptly.

How to avoid violating Labor Code 5814

It’s simple: the best way for a claims administrator to avoid violating Labor Code 5814 is to ensure that they are fully compliant with workers’ compensation laws and pay the benefits owed to the injured worker and the physicians on time.

Steps to take if you believe your employer has violated Labor Code 5814

SAVE THE ENVELOPE!
The best way to prove that a payment to an injured worker was paid late is to save the envelope the late payment came in so it can be provided to the Workers Compensation Judge (WCJ) at the appropriate time.

SAVE LETTERS AND EMAILS
Any documentation you have related to the late payment should be saved as well.

KEEP ANY DEMANDS FROM DOCTORS
If you receive any notices of overdue bills from any of the doctors involved in your workers’ compensation claim, do not throw them away! Even if the workers’ compensation carrier may eventually pay the doctors, a penalty may still be owed to YOU.

DEMAND A BENEFIT PRINTOUT
You are entitled to see what payments the claims administrator has made and when. Keep a copy of any letter or email you send to the claims administrator demanding a printout of all payments made to you and medical providers.

Hiring a workers’ compensation attorney to help with Labor Code 5814 issues

If you believe that the claims administrator has delayed payments in your case, consider contacting an experienced workers’ compensation attorney. An attorney can help you understand your rights and options, gather evidence to support your claim and navigate the complex legal process involved in pursuing the penalties you may be owed. Contact Thomas F Martin PLC at 714-547-5025.