Labor Code sections 4551 and 4552 provide for a 50 percent reduction in benefits if a court finds that the employee’s serious and willful misconduct caused the injury, except under the following circumstances:

The injury resulted in death;
The injury resulted in permanent disability of 70 percent or more;
The injury was caused by the employer’s failure to comply with any provision of law or any safety order of Cal/OSHA; or
The injured employee was less than 16 years old at the time of injury.

“Serious and willful misconduct” is not specifically defined in the statute and is usually of the type that “you know it when you see it.” For example, if an employee removes a guard from a saw to make the work go faster and then cuts off a finger, removing the guard would likely constitute serious and willful misconduct on the employee’s part.

Performance of a duty in an unauthorized, negligent or reckless manner may constitute serious and willful misconduct on the part of the employee.1 However, the Workers’ Compensation Appeals Board is generally loathe to reduce a worker’s entitlement to benefits in all but the most egregious situations. In simple terms, the workers’ compensation system insures and covers negligence and stupidity on the part of the employee. It’s a no-fault system.

1. Pacific Tel. & Tel. Co. v. WCAB, 112 Cal. App. 3d 241 (1980)

Injury Caused by Employee Misconduct

Covered Injuries