(a) Notwithstanding Section 5814, when liability has been unreasonably rejected for claims of injury or illness as defined in Sections 3212 to 3213.2, inclusive, the amount of the penalty shall be five times the amount of the benefits unreasonably delayed due to the rejection of liability, but in no case shall the penalty exceed fifty thousand dollars ($50,000). The question of rejection and the reasonableness of the cause shall be determined by the appeals board in accordance with the facts.

(b) Penalties issued pursuant to this section shall be reported to the audit unit within the Division of Workers’ Compensation.

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Terms Used In California Labor Code 5814.3

  • injury: as used in this division , includes cancer, including leukemia, that develops or manifests itself during a period in which any member described in subdivision (a) is in the service of the department or unit, if the member demonstrates that he or she was exposed, while in the service of the department or unit, to a known carcinogen as defined by the International Agency for Research on Cancer, or as defined by the director. See California Labor Code 3212.1

(c) This section shall apply to all injuries, without regard to whether the injury occurs before, on, or after the operative date of this section.

(Added by renumbering Section 5414.3 by Stats. 2023, Ch. 131, Sec. 145. (AB 1754) Effective January 1, 2024.)