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Bad Faith and Lack of Due Diligence

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The Act gives the Board authority to determine if an employer or the employer’s worker’s compensation insurance carrier acted in bad faith or lacked due diligence in handling an injured worker’s claim. These terms simply refer to the responsibility of employers and worker’s compensation insurance carriers to handle claims with persistence, attentiveness and in good trust.

If an employer or their insurance carrier is found to have acted in bad faith or lacked due diligence, the Board can impose fines which are to be paid to the injured employee between the amount of $500-$20,000. Additionally, attorney fees may also be awarded by the Board in these cases up to 33 1/3% of the amount awarded to the injured worker.

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