Buy Workers’ Comp Insurance, And Not From the Wrong Companies

If you are a business owner in California, you have plenty of things to deal with every day. Unfortunately, many of the things you keep track of are administrative, but nonetheless important for the operation of your business. Each year, California business owners get a reminder to keep up with their workers’ compensation insurance. Failing to do so could mean you need to secure a Los Angeles uninsured employers attorney. Today, the team at Sacks Law Group, APC wants to discuss insurance requirements as well as some pitfalls to avoid when planning your insurance needs each year.

A friendly reminder and a heads-up on buying insurance

It is almost funny, but not so funny – those annual reminders from the California Labor Commissioner’s Office that they must maintain valid workers’ compensation insurance for all workers, including part-time employees.

These reminders come with the list of consequences an employer could face if they fail to follow their requirements:

• A $1,500 per employee not covered by valid workers’ comp insurance.
• A stop order prohibiting work until valid insurance is acquired.
• The possibility of having to pay workers for lost wages during the work stoppage.
• Additional penalties, including a $10,000 fine and even criminal charges.

In today’s work environment, employers have so many things to keep up with, and we do want to stress the importance of staying in compliance with workers’ compensation laws. Aside from the penalties listed above, failing to have this insurance could result in an injured worker filing a personal injury lawsuit against you, opening you up to enormous liability.

However, determining who is and who is not a worker is becoming difficult. Recent changes to how the state classifies independent contractors have many California employers scrambling to reorganize and make choices about how to operate their businesses.

The Labor Commissioner’s Office also reminds employers to only purchase insurance from companies licensed to sell insurance in California. They have levied massive fines against American Labor Alliance and CompOne USA for selling insurance to California employers, even though they are not licensed to sell here.

Always be sure to check the state workers’ compensation requirements if you are confused about what to do. Staying in compliance can be expensive, but being out of compliance could put you out of business.

Our firm is ready to help you through this

If you are in trouble with California authorities over issues related to workers’ compensation insurance, you need to secure legal assistance immediately. At Sacks Law Group, APC, we understand the issues that you are dealing with and will help you navigate these waters. Let us get to work on examining the facts of your case so we can chart a path forward. Our goal is to get you and your business through this with minimal disruption. When you need a Los Angeles uninsured employers attorney, you can contact us for a consultation on your case by clicking here or calling 310-216-7778.