Workers’ Compensation · Primary-source case analysis

Farris: An Unpaid Late-Payment Increase Was Part of the Underlying Benefit

By Aneeta Mishra and Timothy Chan

Published September 13, 2026

Farris v. Industrial Wire Products addressed how former Labor Code penalty provisions interacted when permanent-disability indemnity and the automatic increase for late payment were not timely paid.

An award followed delayed permanent-disability advances

The applicant sustained an admitted cumulative injury to both upper extremities and received a fifty-two-percent permanent-disability award. The judge also imposed a penalty for the carrier’s earlier unreasonable delay in making permanent-disability advances.

The carrier did not self-assess the automatic increase

Former section 4650(d) required a ten-percent increase on specified late indemnity payments without an application by the worker. The applicant sought another penalty after the carrier failed to add that increase to accrued permanent-disability payments.

The increase was derivative of indemnity

The WCAB rejected the view that the section 4650(d) amount was a separate benefit class. It was dependent on and ancillary to the underlying indemnity. Under the law then applied, an unreasonable failure to pay it triggered a section 5814 penalty against the whole underlying class as increased, not only the unpaid increment.

The historical statutory framework controls the opinion

The Board modified the calculation accordingly. Later legislation substantially revised California’s workers’ compensation penalty provisions, including section 5814. Farris should therefore be used for its classification reasoning and historical holding only after checking the statute governing the date and conduct at issue.

Key takeaways

• Identify the exact payment that was late.
• Separate automatic increases from penalties requiring unreasonable delay.
• Determine whether an amount is a distinct benefit or derivative of another class.
• Apply the statutory penalty language in force when the delay occurred.