Willful Misconduct in California: Explained

What You Need to Know About Willful Misconduct in California

California has specific guidelines for litigating willful misconduct. Here’s everything you need to know about willful misconduct in California.

Willful misconduct refers to the intentional breach of employment standards or policies, which results in the claimant’s death or injury. Under California law, employers and employees can be held liable for willful misconduct.

California Employer’s Liability for Willful Misconduct

Under California Labor Code § 4553 and 4553.1, an employer will be held liable:

1. When an employee gets injured as a result of the employer’s willful misconduct

The employer acted or failed to act despite knowledge of probable risks or injuries to the employee.

The employer intentionally injures or harms the employee.

2. For violating a California safety order

An employer violated a known safety order, resulting in the subsequent death or injury of the employee.

Employer’s Liability: Penalty for Willful Misconduct in California

An employer held liable for willful misconduct in California must pay 50% of the benefits awarded to the injured employee. For example, if the injured party’s medical bills cost $40,000, the penalties will amount to $20,000, supplementing workers’ compensation benefits. Under California Insurance Code § 533, the incurred penalty is uninsurable.

California Employee’s Liability for Willful Misconduct

An employee may get discharged for willful misconduct.

If an employee violates a rule, the following requirements constitute willful misconduct:

1. The rule is reasonable

A rule is reasonable if:

It is necessary for the employer’s business to function properly
Compliance with the rule is possible and lawful

2. The employee knew or should have known the rule

Knowledge of the rule occurs when:

The rule was disseminated either orally or in writing
The rule is implicit but universally understood (e.g., appropriate workplace etiquette)

3. The employee willfully violated the rule

An exception to this provision includes good cause for violating the rule. For example, the employer may vindicate an employee for violating a rule due to valid, extenuating circumstances (e.g. an employee missed a week’s worth of work because they were in the hospital with their sick child).

4. The violation is material

A violation is material when the employee’s action directly interfered with or hindered the employer’s business operations.

5. The violation substantially injures the employer’s interests

A violation can be understood as substantial when it has real and proximate effects on the employer’s interests.

6. The employer has previously warned or punished the employee for violating the rule in question

The employer must prove the employee repeatedly violated a rule despite warnings and failed to rectify their behavior.

Employee’s Liability: Penalty for Willful Misconduct in California

When the employee sustains an injury as a result of his willful misconduct, their entitled compensation will reduce by 50%, except:

Where the injury results in death
Where the injury results in a permanent disability of 70% or over
Where the employer fails to comply with the law or a codified safety provision, thereby causing the employee’s injury
Where the injured employee is under 16 years old at the time of the injury

How to file a Willful Misconduct Petition

An employee should file a willful misconduct petition if they have been injured due to their employer’s willful misconduct.

Here are the steps for filing a willful misconduct petition:

The employee must file the petition within 12 months of the employee’s injury date.
There must be a Workers’ Compensation Appeals Board (WCAB) case at the employee’s local district office.
Submit the following documents to the WCAB in the order delineated below:

- Document Cover Sheet
- Document Separator Sheet
- Petition for Serious and Willful Misconduct
- Verification
- Document Separator Sheet
- Proof of Service By Mail

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