Manufacturing V. WCAB
(Gallegos)
new penalty statute
appeals court
decision
industrial injury that
was admitted. The
award in the amount of
$31,535.00. The carrier made
timely payments until a new third
party administrator took over
handling of the file. The new
third party administrator
incorrectly assumed all payments
had been completed and ceased
making permanent disability
payments to the applicant.
requesting an explanation of
benefits. The carrier discovered
their mistake and issued a self
imposed 10% penalty. The
applicant attorney filed for a 5814
penalty.
against the employer for a 25%
penalty. The third party
administrator filed a petition for
reconsideration.
with a 25% penalty. Section (b)
indicates that the employer may
issue a self imposed penalty of 10
% within 90 days of discovery of
the mistake.
by the employer. The discovery
can be by the applicant or the
discusses what "discovery"
means and indicates it is not
defined in the statute. Therefore,
the employer can discover the
mistake through any means.
was entitled to a fee under Labor
Code section 5814.5. This issues
was remanded back to the WCJ.
responding to the Writ and the
appellate court disallowed this
request.
Firm: Samuelsen, Gonzalez,
Valenzuela and Brown
Address: 18500 Von
Karman #470, Irvine
Phone: 949 252-1300
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