Bill Text: CA AB2604 | 2013-2014 | Regular Session | Introduced

---

Bill Title: Workers' compensation: proceedings: payment delay.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-04-23 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2604 Detail]

Download: California-2013-AB2604-Introduced.html

---

BILL NUMBER: AB 2604	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Brown

                        FEBRUARY 21, 2014

   An act to amend Section 5814 of the Labor Code, relating to
workers' compensation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2604, as introduced, Brown. Workers' compensation: proceedings:
payment delay.
   Existing law establishes a workers' compensation system,
administered by the Administrative Director of the Division of
Workers' Compensation, to compensate an employee for injuries arising
out of and in the course of his or her employment. Existing law
requires that certain proceedings, including for the recovery of
compensation, or concerning any right or liability arising out of or
incidental thereto, be instituted before the Workers' Compensation
Appeals Board. The appeals board may fix and determine, in its award,
the total amount of compensation to be paid and specify the manner
of payment, or may fix and determine the weekly disability payment to
be made and order payment during the continuance of disability.
Existing law requires that when payment of compensation has been
unreasonably delayed or refused, either prior to or subsequent to the
issuance of an award, the amount of the unreasonably delayed or
refused payment be increased up to 25% or up to $10,000, whichever is
less, and the appeals board is required to use its discretion to
accomplish a fair balance and substantial justice between the
parties.
   This bill would instead require that when payment of compensation
has been unreasonably delayed or refused, either prior to or
subsequent to the issuance of an award, the amount of the
unreasonably delayed or refused payment be increased up to 25% or up
to $10,000, whichever is more. In using its discretion to accomplish
a fair balance and substantial justice between the parties, the
appeals board would be required to consider the amount of the
original award, the reason for and length of the delay, and whether
there were prior violations.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 5814 of the Labor Code is amended to read:
   5814.  (a) When payment of compensation has been unreasonably
delayed or refused, either prior to or subsequent to the issuance of
an award, the amount of the payment unreasonably delayed or refused
shall be increased up to 25 percent or up to ten thousand dollars
($10,000), whichever is  less   more  . In
any proceeding under this section, the appeals board shall use its
discretion  , including, but not limited to, consideration of the
amount of the original award, the reason for and length of the
delay, and whether there are prior   violations of this
section,  to accomplish a fair balance and substantial justice
between the parties.
   (b) If a potential violation of this section is discovered by the
employer prior to an employee claiming a penalty under this section,
the employer, within 90 days of the date of the discovery, may pay a
self-imposed penalty in the amount of 10 percent of the amount of the
payment unreasonably delayed or refused, along with the amount of
the payment delayed or refused. This self-imposed penalty shall be in
lieu of the penalty in subdivision (a).
   (c) Upon the approval of a compromise and release, findings and
awards, or stipulations and orders by the appeals board, it shall be
conclusively presumed that any accrued claims for penalty have been
resolved, regardless of whether a petition for penalty has been
filed, unless the claim for penalty is expressly excluded by the
terms of the order or award. Upon the submission of any issue for
determination at a regular trial hearing, it shall be conclusively
presumed that any accrued claim for penalty in connection with the
benefit at issue has been resolved, regardless of whether a petition
for penalty has been filed, unless the issue of penalty is also
submitted or is expressly excluded in the statement of issues being
submitted.
   (d) The payment of any increased award pursuant to subdivision (a)
shall be reduced by any amount paid under subdivision (d) of Section
4650 on the same unreasonably delayed or refused benefit payment.
   (e) No unreasonable delay in the provision of medical treatment
shall be found when the treatment has been authorized by the employer
in a timely manner and the only dispute concerns payment of a
billing submitted by a physician or medical provider as provided in
Section 4603.2.
   (f) Nothing in this section shall be construed to create a civil
cause of action.
   (g) Notwithstanding any other  provision of  law,
no action may be brought to recover penalties that may be awarded
under this section more than two years from the date the payment of
compensation was due.
   (h) This section shall apply to all injuries, without regard to
whether the injury occurs before, on, or after the operative date of
this section.
   (i) This section shall become operative on June 1, 2004.