The judge's order approving a settlement issued June 5, 1992, but payment was delayed due to misfiling. The employee is entitled to what?

• A. 10% penalty
• B. Interest
• C. Interest and a 10% penalty
• D. No penalty but interest from the date of the award

Answer: (C)

In California workers’ compensation, there are penalties and interest for late payment of an award or settlement. If the payment is not made promptly and the delay is caused by administrative actions such as misfiling, the law imposes both a 10% penalty on the amount due and interest on the late payment. The penalty serves as a deterrent against delays, while interest compensates the employee for the time the funds were not available.

Here, the judge issued the settlement order on June 5, 1992, but payment was delayed due to misfiling. That administrative delay triggers both components: interest on the overdue amount and a 10% penalty on the amount due. The other options fail to reflect both elements: there is not only interest or only a penalty, and the situation with misfiling calls for both.