Wcab

New United Motors Manufacturing, Inc. (NUMMI) challenges the Workers’ Compensation Appeals Board’s (WCAB) refusal to reconsider an order to pay a penalty and attorney fees for delaying payment of workers’ compensation benefits to respondent John Gallegos (applicant). The WCAB concluded NUMMI unreasonably delayed providing the benefits, and penalized the company an amount equal to 25 percent of the amount of the benefits delayed. The WCAB further awarded applicant the attorney fees he incurred in enforcing payment of the delayed benefits and penalty.

NUMMI contends the WCAB exceeded its authority because it ordered the penalty based on a misinterpretation of the relevant statute, recently enacted Labor Code section 5814. It further contends no proper basis exists for the WCAB’s award of attorney fees under section 5814.5. We agree, and thus vacate the WCAB’s order denying reconsideration.

FACTUAL AND PROCEDURAL BACKGROUND

In June 2001, by a stipulated settlement, applicant was awarded $31,535 in benefits for a work-related injury. Great American Insurance (GAI), a third party administrator (TPA) acting on NUMMI’s behalf, made timely payments on the award until September…