Legal Question in Workers Comp in California
Temporary Disability Overpayment Sent to Collections
My companies insurance company made a miscalculation in my Temporary Disability payments and made an overpayment. Now I am being threatened with bank levys and wage garnishment. Is this legal. My case is now P&S and will hopefully be resolved soon. Can they take this amount from the settlement or do I have to pay it back at all? Thank you for your help
1 Answer from Attorneys
Re: Temporary Disability Overpayment Sent to Collections
A workers' compensation judge has to approve any assessment of an overpayment of TTD. The review should be done at any settlement. Typically if the employee did nothing fraudulent to obtain the overpayment, then the court will not assess the overpayment against other forms of benefits, i.e. permanent disability or medical treatment. However, if the employee was dishonest, then the employer may get a set aside against medical treatment until the overpayment is recovered. Wage garnishments are not allowed unless there is fraud.
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