Alabama Workers’ Compensation Act Provides Sole Remedy for Late Indemnity Payments

26
Feb
2021

Alabama Workers’ Compensation Act Provides Sole Remedy for Late Indemnity Payments

On February 26, 2021, the Alabama Court of Civil Appeals released its opinions concerning three petitions for mandamus that arose out of an action for contempt. Specifically, the plaintiff was awarded permanent and total disability benefits in a 2012 lawsuit against his employer. In 2020, the employee filed a post judgment motion for contempt due to the alleged systematic late payment of his weekly benefits. Although the lion’s share of the opinion addressed procedural and jurisdictional matters not specific to workers’ compensation, Judge Terry Moore pointed out, in his dissenting opinion, that the Legislature already provided for a remedy when indemnity payments are delayed. Alabama Code § 25-5-59(b) provides for an automatic 15% penalty if any indemnity payment that is owed is not paid within 30 days. Further, § 25-5-86(1) provides that, if an employer defaults on its obligation to pay indemnity benefits, the employee can petition for the remaining payments to be accelerated, reduced to present value, and paid in lump sum. As such, it was Judge Moore’s opinion that the Alabama Workers’ Compensation Act precludes an employee from using a contempt proceeding as an additional remedy when indemnity payments are not timely made.

About the Author

This blog submission was prepared by Mike Fish, an attorney with Fish Nelson & Holden, LLC, a law firm dedicated to representing self-insured employers, insurance carriers, and third party administrators in all matters related to workers’ compensation. Fish Nelson & Holden is a member of the National Workers’ Compensation Defense Network. If you have any questions about this submission or Alabama workers’ compensation in general, please contact Fish by e-mailing him at mfish@fishnelson.com or by calling him directly at 205-332-1448.

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