Workers’ Compensation · Primary-source case analysis

Neves Rivera: A Section 5814 Penalty Reached the Entire Unreasonably Delayed Payment

By Aneeta Mishra and Timothy Chan

Published September 11, 2026

A firefighter stopped working because of a cumulative low-back injury. Although the independent medical evaluator repeatedly found industrial causation and temporary disability, the employer did not accept the injury until October 2025 and did not pay section 4850 salary continuation and temporary disability until November 2025.

Temporary disability still ended at permanent and stationary status

The evaluator found the worker permanent and stationary in August 2024. The WCAB rejected an attempt to extend temporary disability as punishment for delay because benefit entitlement must follow the medical evidence; penalties and sanctions address unreasonable conduct.

The employer had to establish genuine doubt

When compensation is delayed, the employer or carrier bears the burden of showing a genuine medical or legal doubt about liability. The decision found no explanation for ignoring repeated medical conclusions for more than a year.

The penalty applied to the whole delayed stream

The arbitrator had penalized only the short temporary-disability period following one year of section 4850 pay. Because both forms of compensation were due from the same injury and were delayed until the same payment, section 5814 applied to the entire unreasonably delayed amount.

The statutory cap controlled the recovery

Twenty-five percent of the delayed compensation would have exceeded the statutory ceiling. The WCAB therefore awarded the $10,000 maximum and a $1,500 attorney fee from that recovery.

Key takeaways

• Anchor temporary-disability duration to the medical recovery period.
• Document the medical or legal basis for any delay in accepting liability.
• Calculate section 5814 against every component of compensation unreasonably delayed.
• Apply the lesser of 25 percent or the $10,000 statutory maximum.