Penalties from 10-50% may be awarded to an injured worker if the workers’ compensation judge finds that a workers’ compensation insurance company has violated the Act. Violations could include:
- Failure to pay workers’ compensation on a timely basis;
- Failure to accept or deny a claim within 21 days;
- Failure to pay medical bills;
- Stopping payment of workers’ compensation without the permission of a Judge or without the injured workers’ signature.
Penalties are not automatic and a Judge may or may not award them. A workers’ compensation insurance carrier can’t request penalties against an injured worker. However, the workers’ compensation insurance carrier can, for example, refer an injured worker for criminal prosecution for not reporting income.
Attorney’s Fees may be awarded if a Judge finds that a workers’ compensation insurance carrier has no defense to a claim. In practice, attorney’s fees are rarely awarded. If the workers’ compensation insurance carrier comes up with some sort of defense, attorney’s fees will likely not be awarded.
In most cases, attorney’s fees when approved by a Judge are deducted from the injured worker’s share of workers’ compensation. In some cases, the Judge can order an insurance company to pay workers’ compensation in addition to the amount paid by the injured worker.
