In California workers' compensation, a 10% penalty may be assessed for unreasonable delay.

Prepare for the California Self‑Insurance Plans (SIP) Exam with our interactive quiz. Benefit from multiple-choice questions, detailed explanations, and essential tips to enhance your knowledge and succeed in your exam!

Multiple Choice

In California workers' compensation, a 10% penalty may be assessed for unreasonable delay.

Explanation:
In California workers’ compensation, there is a statutory penalty for delaying payment that is deemed unreasonable. Specifically, Labor Code 5814 allows a 10% penalty on the amount of compensation due when the delay is found to be unreasonable, and this penalty is in addition to any interest that may accrue. The penalty can be awarded by a judge or the WCAB when delay is considered unreasonable, and it isn’t conditioned on there being interest or on a specific number of days like 60 days. So the statement that a 10% penalty may be assessed for unreasonable delay is correct.

In California workers’ compensation, there is a statutory penalty for delaying payment that is deemed unreasonable. Specifically, Labor Code 5814 allows a 10% penalty on the amount of compensation due when the delay is found to be unreasonable, and this penalty is in addition to any interest that may accrue. The penalty can be awarded by a judge or the WCAB when delay is considered unreasonable, and it isn’t conditioned on there being interest or on a specific number of days like 60 days. So the statement that a 10% penalty may be assessed for unreasonable delay is correct.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy