Under California workers' compensation, when may compensation be paid to an attorney or other agent?

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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

Under California workers' compensation, when may compensation be paid to an attorney or other agent?

Explanation:
In California workers’ compensation, the money paid as compensation (indemnity benefits) is for the employee’s wage replacement and medical-related costs, not to fund legal representation. Any attorney’s fees are treated as a separate fee and must be approved by the Workers’ Compensation Appeals Board; those fees are paid by the employer/insurer and are not paid as compensation to a lawyer. Therefore, compensation to an attorney or other agent is never allowed. Only a WCAB-approved attorney fee may be paid, and that is not considered compensation to the attorney.

In California workers’ compensation, the money paid as compensation (indemnity benefits) is for the employee’s wage replacement and medical-related costs, not to fund legal representation. Any attorney’s fees are treated as a separate fee and must be approved by the Workers’ Compensation Appeals Board; those fees are paid by the employer/insurer and are not paid as compensation to a lawyer. Therefore, compensation to an attorney or other agent is never allowed. Only a WCAB-approved attorney fee may be paid, and that is not considered compensation to the attorney.

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