Ana Rosa Gonzalez — ADJ11097484

Applicant Ana Rosa Gonzalez settled her claim via Compromise and Release approved August 19, 2019, with settlement checks totaling $8,801.75 initially issued timely on August 22, 2019. After the checks failed to reach applicant (who had been evacuated due to the Kincade wildfires) and a series of stop-payments and reissuances, the WCJ imposed a 10% penalty of $880.18 under Labor Code section 5814, awarded attorney's fees under section 5814.5, and awarded interest. The Board majority granted reconsideration and affirmed the interest award but rescinded the penalty and attorney's fees, finding defendant did not act unreasonably given the wildfire evacuation, failure of both parties to communicate timely, lack of any history of delayed payments, and defendant's prompt efforts to correct an isolated problem. Commissioner Sweeney dissented, arguing defendant acted unreasonably in stopping payment on the second set of checks on November 13, 2019 without notifying applicant and then delaying reissuance, causing bounced checks and bank fees, which justified the penalty.