The ER is forcing EEs to receive WC benefits at a lower rate. What is the ER's liability?

• A. Nothing this is not a WCAB issue
• B. $5,000
• C. $10,000
• D. $100,000

Answer: (D)

When an employer forces employees to accept workers’ compensation benefits at a lower rate, it triggers penalties under California workers’ compensation law. The system requires benefits to be paid at the correct rate, and clearly withholding or reducing those benefits is treated as a serious violation. The consequences include reimbursing any underpaid benefits (back pay with interest) and civil penalties. Those penalties can reach the statutory maximum in such willful violations, which is up to $100,000. So the employer’s liability can be as high as $100,000, reflecting both the required back benefits and the substantial civil penalty.