Legal Question in Workers Comp in California

Re: workers comp back pay

Under the old law, unless a specific statute gave a time limit, a delay was unreasonable if the workers compensation carrier was careless in making the payment (acted longer than was reasonable, reasonable business delays being acceptable). I don't think the change in 2004, changed that but I have not seen that issue in any new case.

You need to see a workers compensation attorney in your area. He can request payment and a self imposed penalty.

When our current Governor was newly elected, the insurance industry had his ear and convinced him that if we passed substantial "reform" measures, the business climate in California would make everything great. The change in the workers compensation laws pushed through the legislature effective April 2004 allow the insurance industry to delay many things for the workers at very little risk. The old penalty for unreasonable delay of 10% of the category of benefit being delayed, that was often substantial, has been changed to be 25% of the amount being delayed. This has given the insurance industry a huge windfall. It has also caused the insurance companies to delay many benefits knowing that few attorneys will spend the time and effort to seek the penalty because the penalty and fee is small compared to what it was and the fee before often did not make it worth while to seek the penalty. (The penalties assessed against an insurance company were not supposed to affect the employer's rates, but be a competitive disadvantage with the other insurance carriers.)

Until this law is changed, insurance companies are likely to delay many benefits because they make money on the delay by using the money they delay paying. Until the legislators hear from many claimants explaining what the effect of the change in the penalty laws has been, the workers will continue to be the victems of these "reform" measures passed by the legislature when our govenor had the majority's misplaced trust.

Insurance companies that have stockholders have a duty to their stockholders to make as high a profit as they can. So far that has not lead to companies that try to pay promptly as that is less profitable.