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Guide · 5 min read

The §4650 Payment Clock: When Every Comp Check Is Due

California puts every indemnity payment on a statutory clock — first TD within 14 days, biweekly after that, PD within 14 days of TD ending — and a self-executing 10% on anything late. The adjuster’s compliance map.

Indemnity in California runs on statutory rails: specific deadlines for the first payment, a fixed cadence after it, and an automatic surcharge for missing either. For the desk examiner this is the compliance map; for everyone else it explains why checks arrive when they do.

The clock, in order

First TD: within 14 days of knowledge of injury and lost time (§4650(a)) — pay it or send the delay/denial notice explaining why. Cadence: every two weeks thereafter, at two-thirds of AWW against the year's caps — the TD rate calculator gives the exact weekly and biweekly figures. First PD: within 14 days after TD ends (§4650(b)) — advances start against a reasonable estimate of the award before the rating is final.

The estimate problem, solved

That “reasonable estimate” is a rating problem: WPI from the report → the schedule math → weeks × rate. Waiting for the DEU is not required and not fast; the reserve workflow computes the number the day the report lands, and PD advances can start against it on time.

What lateness costs

§4650(d): the late installment plus 10%, automatically — the calculator’s toggle prices it into any computed indemnity. §5814: if the delay was unreasonable, up to 25% of the delayed amount (capped $10,000), litigated — the penalties guide runs the computed examples. The 10% is the cost of a slipped diary; the 25% is the cost of a slipped file.

The examiner’s defense

Paper: timely benefit notices, documented payment dates, and — when delaying — a genuine-doubt record from a real investigation. On the math side, a computed rating with its audit trail in the file note is what “reasonable estimate” looks like in writing. Informational use only; not legal advice.

FAQ

When is the first TD payment due in California?
Within 14 days after the employer knows of the injury and the resulting inability to work (Lab. Code §4650(a)) — or within that window the claims administrator must instead send a notice explaining why payment isn’t being made. TD then continues every two weeks.
When do PD payments start?
Within 14 days after the last TD payment (§4650(b)) — PD advances begin at the statutory rate even before the final rating is known, based on a reasonable estimate of the eventual award. That estimate is exactly what a rating calculator produces from the medical evidence.
What happens if a payment is late?
Two layers: §4650(d) automatically adds 10% to the late installment — self-executing, no fault finding needed. If the delay was unreasonable, §5814 adds up to 25% (capped $10,000) on top, litigated at the WCAB.
Does the 10% apply if the claim is disputed?
The self-imposed increase applies to late payment of accepted indemnity. A timely, good-faith denial or delay notice changes the analysis — the clock is about paying or explaining on time, not about paying every claim.
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Estimates for informational use only. Always verify ratings against the DEU. Not legal advice.

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