Late payment penalties

Risk & Insurance, Oct 1, 2005

State lawmakers on August 29 advanced a bill that would fine employers in California for failing to pay workers compensation benefits within 10 days of a court award. Under the bill, employers would have to pay $2,000 plus the amount owed for a first violation and $5,000 for each subsequent violation.

The bill, sponsored by Joseph Dunn, D-Garden Grove, now heads back to the Senate for concurrence with assembly modifications. It specifies that in order to obtain penalties, an employee would have to prevail in an enforcement action.