If a settlement payment is delayed due to misfiling by the carrier, the employee is entitled to what?

If a settlement payment is delayed due to misfiling by the carrier, the employee is entitled to what?

• A. Only interest
• B. 10% penalty and interest
• C. 10% penalty only
• D. No penalty or interest

Answer: (B)

When a settlement payment is delayed because the carrier misfiles, California law imposes both a penalty and interest on the amount due. The penalty is 10% of the payment, and interest accrues on the amount from the due date at the statutory rate (10% per year) until payment is made. This combination addresses the carrier’s late payment and compensates the employee for the delay. So the employee is entitled to both the 10% penalty and the interest, not just one or the other.

When a settlement payment is delayed because the carrier misfiles, California law imposes both a penalty and interest on the amount due. The penalty is 10% of the payment, and interest accrues on the amount from the due date at the statutory rate (10% per year) until payment is made. This combination addresses the carrier’s late payment and compensates the employee for the delay. So the employee is entitled to both the 10% penalty and the interest, not just one or the other.