California Labor Code §5814 Statutory Text:
(a) When payment of compensation has been unreasonably delayed or refused, either prior to or subsequent to the issuance of an award, the full amount of the order, decision, or award shall be increased by 25 percent or up to ten thousand dollars ($10,000), whichever is less.
(b) If a potential violation of this section is discovered by the employer, the employer may, under the jurisdiction of the appeals board, make a self-imposed increase in compensation in the amount of 10 percent or two thousand five hundred dollars ($2,500), whichever is less. The appeals board shall have jurisdiction to approve or disapprove of the self-imposed penalty. If the appeals board approves of the self-imposed penalty, no additional penalty shall be awarded.
(c) The increased award in subdivision (a) shall be reduced by the amount specified in subdivision (b) if the employer has made a self-imposed penalty and it has been approved by the appeals board.
(d) The payment of the increased award shall be made to the same person to whom and in the same manner as the compensation is paid.
(e) This section shall not apply to delays resulting from appeals by the employer, unless the workers’ compensation appeals board determines that the appeal was frivolous or solely intended to cause delay.
Understanding Labor Code §5814 – Penalties for Unreasonable Delay or Denial in California Workers’ Compensation
When you’re injured on the job, you expect your workers’ compensation benefits to be paid timely and fairly. But insurance companies and employers don’t always follow the rules. That’s where Labor Code §5814 comes into play—it holds employers and insurers accountable for delays or denials that are unreasonable.
What Counts as an “Unreasonable Delay or Denial”?
Under California law, employers and insurance companies must promptly pay:
- Temporary disability (TD) payments
- Permanent disability (PD) payments
- Medical treatment
- Mileage reimbursements
- Any other benefits due under a claim
If they unreasonably delay or wrongfully deny any of these, Labor Code §5814 allows for a penalty of 25% or up to $10,000—whichever is less—to be added on top of the amount owed.
This penalty is designed to punish insurance companies that try to play games with injured workers’ lives.
Examples of Unreasonable Delays or Denials
- Failing to issue TD checks without explanation
- Ignoring approved medical treatment requests
- Delaying payment after an award has already been issued
- “Losing” documents repeatedly
- Denying care without a valid Utilization Review decision
Self-Imposed Penalties (Section 5814(b))
If an employer or insurer realizes they’ve made a mistake, they can self-impose a 10% penalty or $2,500, whichever is less. If this is done voluntarily and in good faith, and the Workers’ Compensation Appeals Board (WCAB) approves it, then no further penalties will be issued under §5814.
But if the WCAB finds that the delay was part of a pattern of bad behavior, or if no self-imposed penalty is made, the full penalty under §5814(a) can be awarded.
What Doesn’t Count
If your employer files a legitimate appeal, and the delay in benefits is due to that appeal, §5814 penalties usually do not apply—unless the appeal is deemed frivolous or solely intended to delay.
Why Labor Code §5814 Matters
This law is one of the few teeth in California’s workers’ compensation system. It:
- Deters bad faith insurance tactics
- Protects injured workers from financial harm
- Encourages fair and timely benefits
But here’s the catch: the penalties are not automatic. You must file a separate petition and prove the delay was unreasonable.
That’s where a good legal team comes in.
How EFLL Can Help
At Employees First Labor Law, we’ve seen it all—delays, denials, red tape, and insurance companies trying to save money at your expense. When they break the rules, we fight back hard.
Our attorneys can:
- Identify and document violations
- File for §5814 penalties
- Demand the compensation and penalties you’re owed
- Push back on delay tactics and hold insurers accountable
📚 Learn More
Want to understand more key protections under California law? Check out our full guide:
👉 Top 25 California Labor Codes for Workers’ Comp
Contact Employees First Labor Law to make sure your medical rights are protected and your recovery isn’t compromised.
