Labor Code section 5814.3

(a)

Notwithstanding Section 5814, when liability has been unreasonably rejected for claims of injury or illness as defined in Section 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.

(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.

Source: Section 5814.3, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=5814.­3.­ (updated Jan. 1, 2024; accessed Jul. 20, 2026).

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Verified:
Jul. 20, 2026

§ 5814.3's source at ca​.gov