THE HIDDEN DANGERS OF VR VOUCHERS
(How an $8,000 Voucher can cost $15,000)
While few would argue that vocational rehabilitation vouchers represent a significant savings to defendants over the prior vocational rehabilitation system, many are unaware that penalties and attorney’s fees may be awarded if the strict timelines for offering those vouchers are not met.
Labor Code §4658.5 requires the Voucher Notice of AD Rule 10133.52 be sent within 10 days of TD termination. The Voucher Notice requires that the voucher must be provided to the injured worker within 25 calendar days of the permanent disability being awarded. If this timeline is not met, not only may an injured work claim a 25% penalty, but the injured worker’s attorney can claim an hourly attorney’s fee for all time spent in obtaining the voucher. Such hourly attorney’s fee requests are often upwards of $350 per hour.
In the WCAB panel decision of Medina v. CDL Landscape/SCIF(SBR 0322331), an untimely $8,000 voucher offer resulted in liability for not only the underlying voucher, but a penalty of 25% of the voucher amount ($2,000) plus attorney’s fees of $4,747.50. There are at least three other WCAB panel decisions supporting penalties and attorney’s fees.
While significant savings have been accomplished by the voucher system, the possibility of penalties and attorney’s fees remain.
Article by Dean A. Tompkins. Mr. Tompkins can be reached at tompkins@vandw.com regarding this issue or any other workers’ compensation related questions. All such questions are welcome.