Workers' compensation penalties -- Objection to Penalty Assessment form

Effective filing

When filing an Objection to Penalty Assessment form, the objecting party must do the following.

Supply all information requested on the Objection to Penalty Assessment form, including a notarized proof of service to all parties.

Send the original form directly to the Department of Labor and Industry.

Send a copy to the employee only if part of the penalty assessed is payable to the employee.

Send a copy to the employer.

Serve the objection on all parties within 30 days of the date the penalty was served. Remember, to be considered timely, the objection must be received by the department by the 30th day.

Include a detailed statement explaining the legal or factual basis for the objection. Supply documentation to support the objection.

Attach any additional information that is relevant.

Department procedure

The department's procedure for handling most Objection to Penalty Assessment forms starts with an immediate review of the objection by the staff person who wrote the penalty. The department generally has five options for responding to the objection.

Department's options for responding to objection

1. Rescind the penalty -- The department rescinds the penalty when the information supplied on or with the objection is sufficient to show the penalty was not appropriate. An order rescinding the penalty is issued to all involved parties and the objection process is considered complete.

2. Amend the penalty -- If information supplied on or with the objection shows the original penalty amount was not accurate, the penalty is amended to reflect the new information. The department considers the objection process complete when the amended penalty is served and filed.

3. Write for additional information -- If information received on or with the objection is not clear, the department will contact the party filing the objection, asking for additional clarification. When final clarification is received, the department will follow one of the other options to complete the objection process.

4. Negotiate a settlement -- If the department is not able to rescind or amend the penalty after reviewing the information, the department may open negotiations to settle the penalty. This is done before the objection is forwarded to the Office of Administrative Hearings (OAH). If the negotiations result in an agreement to settle the penalty, a stipulation for settlement of the penalty assessment is written and signed by the parties. The stipulation is then forwarded to OAH with a request for an award approving the settlement.

The department does not have the authority to negotiate a settlement of any penalty amounts payable to the employee. If the negotiations result in a change in the penalty amount payable to the employee, the employee must be included in all negotiations. This being the case, it is generally easier to only negotiate settlement of the amount payable to the state while agreeing that as part of the settlement the full penalty amount will be paid to the employee.

5. Refer to OAH -- The objection is forwarded to OAH for one of two actions:

request for dismissal, because of late filing or lack of legal or factual basis for the objection; or

scheduling of a settlement conference and any additional conferences and hearings that might be necessary.

Department's options for responding to objection
1.	Rescind the penalty -- The department rescinds the penalty when the information supplied on or with the objection is sufficient to show the penalty was not appropriate. An order rescinding the penalty is issued to all involved parties and the objection process is considered complete.
2.	Amend the penalty -- If information supplied on or with the objection shows the original penalty amount was not accurate, the penalty is amended to reflect the new information. The department considers the objection process complete when the amended penalty is served and filed.
3.	Write for additional information -- If information received on or with the objection is not clear, the department will contact the party filing the objection, asking for additional clarification. When final clarification is received, the department will follow one of the other options to complete the objection process.
4.	Negotiate a settlement -- If the department is not able to rescind or amend the penalty after reviewing the information, the department may open negotiations to settle the penalty. This is done before the objection is forwarded to the Office of Administrative Hearings (OAH). If the negotiations result in an agreement to settle the penalty, a stipulation for settlement of the penalty assessment is written and signed by the parties. The stipulation is then forwarded to OAH with a request for an award approving the settlement. The department does not have the authority to negotiate a settlement of any penalty amounts payable to the employee. If the negotiations result in a change in the penalty amount payable to the employee, the employee must be included in all negotiations. This being the case, it is generally easier to only negotiate settlement of the amount payable to the state while agreeing that as part of the settlement the full penalty amount will be paid to the employee.
5.	Refer to OAH -- The objection is forwarded to OAH for one of two actions: request for dismissal, because of late filing or lack of legal or factual basis for the objection; or scheduling of a settlement conference and any additional conferences and hearings that might be necessary.