When a third-party creditor asserts a lien during a workers’ compensation case, what is the typical proper course of action?

• A. Pay the debt from the F&A.
• B. Refuse liens as they are not allowed.
• C. Refer the matter to the WCAB for lien handling.
• D. Advise the creditor to file a lien with the WCAB.

Answer: (D)

When a third‑party creditor asserts a lien in a California workers’ compensation case, the lien must be processed through the proper forum to ensure it’s valid and enforceable. The creditor should file the lien with the Workers’ Compensation Appeals Board (WCAB) so the lien can be adjudicated under WCAB rules. This preserves the creditor’s subrogation rights and allows proper allocation of any recovery, if one exists, and avoids using funds not intended for that purpose. Paying the debt from the F&A would bypass the required process and could violate WCAB procedures. Liens are allowed and must be filed by the lienholder with the WCAB, not simply handled outside that process. Therefore, the typical proper course is to advise the creditor to file a lien with the WCAB.