Findings and Awards in Workers Comp Cases

Division 4, Part 4, Chapter 6 of the Labor Code deals with findings and awards in workers’ compensation proceedings.

Section 5800 provides that all awards of the appeals board either for the payment of compensation or for the payment of death benefits, must carry interest at the same rate as judgments in civil actions on all due and unpaid payments from the date of the making and filing of said award.

Section 5800.5 requires the 30-day period to run from the date of the submission of the application for decision and the provisions requiring the decision within the 30-day period to be deemed mandatory and not merely directive.

Section 5801 allows the appeals board in its award to fix and determine the total amount of compensation to be paid and specify the manner of payment, or may fix and determine the weekly disability payment to be made and order payment thereof during the continuance of disability. In the event the injured employee or the dependent of a deceased employee prevails in any petition by the employer for a writ of review from an award of the appeals board and the reviewing court finds that there is no reasonable basis for the petition, it is required to remand the cause to the appeals board for the purpose of making a supplemental award.

Section 5802 provides that, if, in any proceeding under this division, it is proved that an injury has been suffered for which the employer would be liable to pay compensation if disability had resulted therefrom, but it is not proved that any disability has resulted, the appeals board may, instead of dismissing the application, award a nominal disability indemnity, if it appears that disability is likely to result at a future time.

Section 5803 explains that the appeals board has continuing jurisdiction over all its orders, decisions, and awards made, and the decisions and orders of the rehabilitation unit established. At any time, upon notice and after an opportunity to be heard is given to the parties in interest, the appeals board may rescind, alter, or amend any order, decision, or award, good cause appearing therefor.

This power includes the right to review, grant or regrant, diminish, increase, or terminate, within the limits prescribed by this division, any compensation awarded, upon the grounds that the disability of the person in whose favor the award was made has either recurred, increased, diminished, or terminated.

Section 5803.5 provides any conviction that materially affects the basis of any order, decision, or award of the appeals board are sufficient grounds for a reconsideration of that order, decision, or award.

Section 5804 specifies that no award of compensation is to be rescinded, altered, or amended after five years from the date of the injury except upon a petition by a party in interest filed within such five years and any counterpetition seeking other relief filed by the adverse party within 30 days of the original petition raising issues in addition to those raised by such original petition.

Section 5805 provides that any order, decision, or award rescinding, altering or amending a prior order, decision, or award has the effect herein provided for original orders, decisions, and awards.

Section 5806 allows any party affected  to file a certified copy of the findings and order, decision, or award of the appeals board with the clerk of the superior court of any county. Judgment is to be entered immediately by the clerk in conformity therewith. The phrase “any party affected thereby” is defined.

Section 5807 provides that the certified copy of the findings and order, decision, or award of the appeals board and a copy of the judgment constitute the judgment-roll. The pleadings, all orders of the appeals board, its original findings and order, decision, or award, and all other papers and documents filed in the cause must remain on file in the office of the appeals board.

Section 5808 allows the appeals board or a member to stay the execution of any judgment entered upon an order, decision, or award of the appeals board, upon good cause appearing therefor and may impose the terms and conditions of the stay of execution. A certified copy of the order must be filed with the clerk entering judgment.

Where it is desirable to stay the enforcement of an order, decision, or award and a certified copy thereof and of the findings has not been issued, the appeals board or a member thereof may order the certified copy to be withheld with the same force and under the same conditions as it might issue a stay of execution if the certified copy had been issued and judgment entered thereon.

Section 5809 provides that, when a judgment is satisfied in fact, otherwise than upon an execution, the appeals board may, upon motion of either party or of its own motion, order the entry of satisfaction of the judgment. The clerk enters satisfaction of judgment only upon the filing of a certified copy of the order.

Section 5810 states that the orders, findings, decisions, or awards of the appeals board made and entered under this division may be reviewed by the courts.

Section 5811 specifies that no fees are to be charged by the clerk of any court for the performance of any official service required by this division, except for the docketing of awards as judgments and for certified copies of transcripts. In all proceedings under this division before the appeals board, costs as between the parties may be allowed by the appeals board. It is the responsibility of any party producing a witness requiring an interpreter to arrange for the presence of a qualified interpreter.

Interpreter fees that are reasonably, actually, and necessarily incurred are to be paid by the employer under this section, provided they are in accordance with the fee schedule adopted by the administrative director. A qualified interpreter may render four specified services.

Section 5813 authorizes the workers’ compensation referee or appeals board to order a party, the party’s attorney, or both, to pay any reasonable expenses, including attorney’s fees and costs, incurred by another party as a result of bad-faith actions or tactics that are frivolous or solely intended to cause unnecessary delay.

In addition, a workers’ compensation referee or the appeals board, in its sole discretion, may order additional sanctions not to exceed 2,500 to be transmitted to the General Fund. The determination of sanctions is to be made after written application by the party seeking sanctions or upon the appeal board’s own motion.

Section 5814 provides that, when payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the amount of the payment unreasonably delayed or refused must be increased up to 25 percent or up to $10,000, whichever is less. The appeals board must use its discretion to accomplish a fair balance and substantial justice between the parties.

If a potential violation of this section is discovered by the employer prior to an employee claiming a penalty under this section, the employer, within 90 days of the date of the discovery, may pay a self-imposed penalty in the amount of 10 percent of the amount of the payment unreasonably delayed or refused, along with the amount of the payment delayed or refused. This self-imposed penalty is in lieu of the penalty specified.

Upon the approval of a compromise and release, findings and awards, or stipulations and orders by the appeals board, it is conclusively presumed that any accrued claims for penalty have been resolved, regardless of whether a petition for penalty has been filed, unless the claim for penalty is expressly excluded by the terms of the order or award. Upon the submission of any issue for determination at a regular trial hearing, it is conclusively presumed that any accrued claim for penalty in connection with the benefit at issue has been resolved, regardless of whether a petition for penalty has been filed, unless the issue of penalty is also submitted or is expressly excluded in the statement of issues being submitted.

Section 5814.1 provides that, when the payment of compensation has been unreasonably delayed or refused prior to the issuance of an award, and the director has provided discretionary compensation, the appeals board is required to award to the director a penalty to be paid by the employer in the amount of 10 percent of the compensation so provided by the director. The question of delay and the reasonableness of the cause therefor must be determined by the appeals board in accordance with the facts.

Section 5814.3 explains that, when liability has been unreasonably rejected for claims of injury or illness, the amount of the penalty is five times the amount of the benefits unreasonably delayed due to the rejection of liability, but in no case is the penalty to exceed $50,000. The question of rejection and the reasonableness of the cause is determined by the appeals board in accordance with the facts. 

Section 5814.5 provides that, when the payment of compensation has been unreasonably delayed or refused subsequent to the issuance of an award by an employer that has secured the payment of compensation, the appeals board is required, in addition to increasing the order, decision, or award pursuant to Section 5814, to award reasonable attorneys’ fees incurred in enforcing the payment of compensation awarded.

Section 5814.6 explains that any employer or insurer that knowingly violates Section 5814 with a frequency that indicates a general business practice is liable for administrative penalties of not to exceed $400,000. Penalty payments are to be imposed by the administrative director and deposited into the Return-to-Work Fund.

Section 5815 provides that every order, decision or award, other than an order merely appointing a trustee or guardian, must contain a determination of all issues presented for determination by the appeals board prior thereto and not theretofore determined.

Section 5816 states that a determination of facts by the appeals board under this chapter has no collateral estoppel effect on a subsequent criminal prosecution and does not preclude litigation of those same facts in the criminal proceeding.