44-512b. Failure to pay compensation prior to award without just cause; interest, penalty.

44-512b

Chapter 44.--LABOR AND INDUSTRIES
Article 5.--WORKERS COMPENSATION

      44-512b.   Failure to pay compensation prior to award without justcause; interest, penalty.(a) Whenever the administrative law judge or boardfinds, upona hearing conducted pursuant to K.S.A. 44-523 and amendmentsthereto or upon review or appeal of an award entered in such a hearing,that there was not just cause or excuse for the failure of the employeror insurance carrier to pay, prior to an award, the compensation claimedto the person entitled thereto, the employee shall be entitled tointereston the amount of thedisability compensation found to be due and unpaidat the rate of interest prescribed pursuant to subsection (e)(1) ofK.S.A. 16-204 and amendments thereto. Such interest shallbe assessed against the employer or insurance carrier liable for thecompensation and shall accrue from the date such compensation was due.

      (b)   Interest assessed pursuant to this section shall be considered apenalty and shall not be considered a loss or a loss adjustment expenseby an insurance carrier in the promulgation of rates forworkers compensation insurance.

      (c)   This section shall be part of and supplemental to theworkers compensation act.

      History:   L. 1979, ch. 158, § 2; L. 1980, ch. 146, § 3;L. 1988, ch. 169, § 1;L. 1993, ch. 286, § 40; July 1.