Late Payment Penalties

The automatic 10% increase on a late indemnity payment (LC 4650(d)); the penalty for unreasonable delay or refusal — up to 25% of the amount delayed or $10,000, whichever is less, reduced by any 4650(d) increase on the same payment (LC 5814(a), (d)); or the employer's self-imposed 10% penalty that replaces it (LC 5814(b)).

Whether a delay is "unreasonable" is a factual finding for the WCAB; this calculator only applies the statutory arithmetic once that finding is assumed. Multiple LC 5814 penalties may apply to separate delays; compute each separately. A claim for a 5814 penalty must be brought within two years of the date the payment was due (LC 5814(g)).