California Highway Patrol v. Workers' Compensation Appeals Board

An employer delayed in paying workers’ compensation benefits. When the employer made a retroactive payment, it failed to include accrued interest. The Workers Compensation Appeals Board (WCAB) imposed two consecutive 10 percent penalties: one for the late benefit payment and one for the failure to pay interest. (Lab. Code, § 5814.) We hold that when an employer or carrier makes a late workers’ compensation benefit payment and fails to include interest in that payment, only a single penalty may be imposed under Labor Code section 5814 (section 5814).

California Highway Patrol (CHP) petitions after the WCAB awarded Jaime Erebia three separate penalties for unreasonable delays in paying (1) permanent disability benefits; (2) interest on the late permanent disability payment; and (3) medical treatment benefits. CHP contends the penalty for the unreasonable delay in paying interest constitutes an improper multiple penalty under Christian v. Workers’ Comp. Appeals Bd. (1997) 15 Cal.4th 505 [ 63 Cal.Rptr.2d 336 , 936 P.2d 115 ]. We agree, and annul the portion of the WCAB’s order awarding a penalty for the failure to include accrued interest with the retroactive benefit…