An employee is terminated following an industrial injury because he filed a claim for compensation benefits. The EE is entitled to which of the following?

• A. Reinstatement
• B. A 50% increase in the EE's compensation
• C. The EE's compensation shall be increased by one-half, up to $10,000, plus reinstatement and reimbursement for lost wages and work benefits
• D. A finding that the ER is guilty of a misdemeanor plus a 50% increase in the employee's compensation

Answer: (C)

This question tests protections against retaliation for workers who file a workers’ compensation claim. California law requires that, if an employee is terminated or discriminated against for filing a claim, the employer must reinstate the employee and compensate for wages and benefits lost due to the termination. In addition, the employer faces a statutory penalty: the employee is entitled to a 50% increase in the compensation awarded, up to a maximum of $10,000. So the full remedy includes reinstatement, reimbursement for lost wages and benefits, and a 50% penalty up to $10,000.

That’s why the correct answer reflects all three elements: the 50% increase up to $10,000 plus reinstatement and back/pay and benefits. The other options miss one or more parts—reinstatement alone is not enough; a stand-alone 50% increase without the cap and back pay is incomplete; and there is no misdemeanor finding involved in this remedy.