PENALTIES IN WORKERS’ COMPENSATION CLAIMS

The purpose of imposing penalties is to expedite compensation and penalize an employer who unreasonably, or in bad faith, delays or withholds compensation due to an employee. Where a delay in the payment of compensation has occurred, the employer has the burden to demonstrate that the delay was warranted. Penalties may not be imposed on an employer if the non-payment is based on a reasonable and good faith challenge to liability. This is a factual question, and the Commission’s determination will not be disturbed unless it is against the manifest weight of the evidence.