The Judge's Order approving a settlement issues June 5, 1992. Payment on the order is not made until August 15, 1992, because the order was misfiled by the insurance carrier. The EE is:

The Judge's Order approving a settlement issues June 5, 1992. Payment on the order is not made until August 15, 1992, because the order was misfiled by the insurance carrier. The EE is:

• A. Entitled to a 10% penalty because of the unreasonable delay.
• B. Not entitled to a penalty because the delay was not significant;
• C. Entitled to interest and a 10% penalty because of the delay.
• D. Not entitled to a penalty but is entitled to interest from the date of the award.

Answer: (A)

Unreasonable delay in paying a workers’ compensation award triggers a 10% penalty on the amount due. Here, the Judge’s order approving the settlement was issued June 5, 1992, but payment was not made until August 15, 1992. The insurer’s misfiling caused the delay, which is still an unreasonable delay in payment. Therefore, the employee is entitled to the 10% penalty on the amount due under the order. The scenario focuses on the penalty for late payment, not on accruing interest, and the delay is clearly beyond what would be reasonable, making the 10% penalty the applicable remedy.

Unreasonable delay in paying a workers’ compensation award triggers a 10% penalty on the amount due. Here, the Judge’s order approving the settlement was issued June 5, 1992, but payment was not made until August 15, 1992. The insurer’s misfiling caused the delay, which is still an unreasonable delay in payment. Therefore, the employee is entitled to the 10% penalty on the amount due under the order. The scenario focuses on the penalty for late payment, not on accruing interest, and the delay is clearly beyond what would be reasonable, making the 10% penalty the applicable remedy.