Greetings, any time a claimant files a PFB for indemnity, TTD, TPD, PTD, or Impairment benefits, there is an accompanying claim for Penalties and Interest. Even if we timely respond to the PFB and agree to pay any outstanding benefits, unless we agree to pay any penalties and interest owed, we still have exposure to attorney fees.
(Back by popular demand, Tip of the Month 30 min webinar this Friday, 6/12, 11:30-12, not for credits, for knowledge. Grab an egg salad sandwich and join us! RSVP to EG@eraclides.com for this and for our Tampa live CEU extravaganza 7/31.
Whether or not a payment is late is a whole other Tip, but let’s talk about P and I in general. Always go back and check your prior payments to see if they were made late, you can pay the P and I in response to the PFB and avoid attorney fees.
The Penalty is 20% of the amount due (before interest), and the only time a penalty is not due is if there are “conditions over which the employer or carrier had no control.” For purposes of the statute, the Employer and Carrier are one and the same. For example is the AWW correction is late because the employer didn’t tell the carrier benefits ended, that is not outside our control.
The Interest is due no matter what if you are late, regardless if it is outside our control. It is calculated on what you owe, not including the penalty. interest is at a rate of 12% annually, with a minimum of $5 per payment that is late (2 checks are late, minimum is $10). A sort of easy doublecheck, take your calculator, divide .12 / 365 days to get your daily interest rate. Multiply that by the amount of the late check and then by how many days you are late to see if you owe more than $5. I did say sort of easy.
Here are the statue sections. Join us on Friday to discuss more!
440.20( 6)(a) If any installment of compensation for death or dependency benefits, or compensation for disability benefits payable without an award is not paid within 7 days after it becomes due, as provided in subsection (2), subsection (3), or subsection (4), there shall be added to such unpaid installment a penalty of an amount equal to 20 percent of the unpaid installment, which shall be paid at the same time as, but in addition to, such installment of compensation. This penalty shall not apply for late payments resulting from conditions over which the employer or carrier had no control.
(8)(a) In addition to any other penalties provided by this chapter for late payment, if any installment of compensation is not paid when it becomes due, the employer, carrier, or servicing agent shall pay interest thereon at the rate of 12 percent per year from the date the installment becomes due until it is paid, whether such installment is payable without an order or under the terms of an order. The interest payment shall be the greater of the amount of interest due or $5.
Sincerely,
Morgan Indek | Managing Parter