If an employer is guilty of serious and willful misconduct and an employee loses both hands, what percentage should reserves be increased by?

In California workers' compensation, if an employer is found guilty of serious and willful misconduct, the law dictates an increased level of compensation for the injured employee. Specifically, when an employee suffers a catastrophic injury, such as the loss of both hands, the reserves set for the workers' compensation claim must be adjusted to reflect this severity.

The applicable statute allows for reserves to be increased by 50% in cases of serious and willful misconduct. This increase reflects the serious nature of both the misconduct and the injuries sustained, ensuring that the compensatory measures adequately address the long-term impact on the employee's life and earning potential. The rationale behind this is to hold employers accountable for their actions, encouraging a safer workplace environment.

Understanding this framework is essential for effective claims handling, as it directly influences the financial reserves that must be maintained for future payouts related to the claim.