Timing for payment of Workers’ Compensation benefits

According to Connecticut General Statutes 31-303, payment of benefits in a Workers’ Compensation claim must be made within twenty days.  If payment is not made according to the statute, the insurance company will be ordered to pay a penalty of 20% of the payment in question.

This statute applies to both regular, ongoing weekly payments and to settlements. 

The exact language of 31-303 reads:

Sec. 31-303. Day when compensation payments become due.

Penalty for late payments. Payments agreed to under a voluntary agreement shall commence on or before the twentieth day from the date of agreement. Payments due under an award shall commence on or before the twentieth day from the date of such award. Payments due from the Second Injury Fund shall be payable on or before the twentieth business day after receipt of a fully executed agreement. Any employer who fails to pay within the prescribed time limitations of this section shall pay a penalty for each late payment, in the amount of twenty per cent of such payment, in addition to any other interest or penalty imposed pursuant to the provisions of this chapter. 

The Workers’ Compensation Commission has largely held that 31-303’s requirement that payment “shall commence” on or before the twentieth day form the date of the agreement only requires that payment be mailed out on or before day twenty.  31-303 does not require that the Claimant must receive the payment within twenty days.

 However, under certain circumstances, a compromised payment of a late penalty less than 20% can be negotiated.