What Is California Labor Code §5800: Interest on Awards?

All awards of the appeals board either for the payment of compensation or for the payment of death benefits, shall carry interest at the same rate as judgments in civil actions on all due and unpaid payments from the date of the making and filing of said award. Such interest shall run from the date of making and filing of an award, as to amounts which by the terms of the award are payable forthwith. As to amounts which under the terms of the award subsequently become due in installments or otherwise, such interest shall run from the date when each such amount becomes due and payable.

What is Labor Code 5800?

Section 5800 adds automatic interest to any part of a WCAB award that is not paid on time.

Labor Code 5800 has one job. It tells a claims administrator that an unpaid workers' compensation award keeps growing until the balance is paid in full. The Workers' Compensation Appeals Board, usually called the WCAB, hears California work injury disputes and issues awards ordering payment. Once a WCAB award is made and filed, this law treats the unpaid balance the way a court treats an unpaid civil judgment. Interest adds up for every day the balance sits unpaid.

This rule covers a Findings and Award issued after a trial. It also covers a Stipulated Award that the parties sign and the WCAB approves. Both are awards for the purpose of this statute. An award can order temporary disability, permanent disability, or death benefits, and interest can attach to any of them. The wording has not changed since the Legislature last amended this section in 1965, and it is not tied to an injury date. What matters is the date of the award and its own payment terms, not when the underlying injury happened. Section 5800 does not apply before an award exists; a claim with no WCAB award yet falls under the separate first-payment and late-payment rules covered below instead.

How does interest add up on a workers' comp award?

The start date depends on whether the award pays right away or in installments.

The statute sets two start dates. If the award orders money paid right away, often called payable forthwith, interest starts on the date the WCAB made and filed the award. If the award instead sets up installments, such as weekly permanent disability payments or a life pension, interest on each installment begins on the date that installment becomes due. A later installment does not borrow the start date of an earlier one. Each payment has its own clock.

In practice, a claims administrator that falls behind on a single weekly check owes interest on that check from its own due date forward, not from the date of the original award. A worker who tracks due dates against actual payment dates can see where interest is owed.

What interest rate applies under Labor Code 5800?

The rate tracks the rate used for civil court money judgments, not a fixed Labor Code number.

This section does not set its own interest rate. Instead, it borrows the rate that applies to money judgments in civil court. That civil rate is set outside the Labor Code and can change over time. Because of this, the exact rate on a given award depends on when the interest is running. A claims administrator or an attorney can confirm the current rate and calculate the dollars owed for a specific award and payment history.

How is 5800 interest different from other late-payment rules?

Interest, the 5814 penalty, and the 4650 increase are three separate consequences for late payment.

Workers' comp law uses more than one tool for late payment. Section 5800 interest is automatic on any unpaid part of a WCAB award; it is not a penalty, just the cost of holding someone else's money. Labor Code 5814 is a separate penalty, added only when payment of compensation was unreasonably delayed or refused. Labor Code 4650 adds a different, smaller increase when an employer misses the deadline for an injured worker's first disability check. A single late payment can raise more than one of these issues at once, so it helps to look at all three rather than assume only one applies.

Does interest keep running during a reconsideration or appeal?

Yes, interest keeps adding up on the amounts an award already orders paid while a challenge is pending.

A party that disagrees with an award can ask the WCAB to reconsider it, and later seek a writ of review in court. Our guide to the reconsideration deadline and guide to the writ of review deadline cover those steps. The text of section 5800 does not carve out an exception for a pending petition or appeal. It ties interest to the award's own payment terms, not to whether someone has asked the WCAB or a court to look at the award again.

What should an injured worker save or ask about unpaid interest?

Save the award and every payment record, then ask for a written interest calculation.

Keep a copy of the award and note its filing date. Track each payment by amount and date received, not just the date a check was mailed. Compare those dates against the due dates the award sets. If a gap shows up, ask the claims administrator in writing for an interest calculation on the late amount. Keep that request and any response. These records are also useful if a dispute later goes back to the WCAB.

Interest under section 5800 is often a small part of a larger payment problem, such as a late check, a disputed rating, or a delayed award. Yazdchi Law P.C. reviews each potential case individually, and not every inquiry leads to representation. If a workers' compensation award has gone unpaid or interest looks wrong, call (661) 273-1780 or send details through the contact form. For a wider view of next steps after a dispute, see our guide on what to do after a workers' comp claim is denied and the California Labor Code index for other statute guides.