Marina del Rey Uninsured Employer Penalties May Include Fines & Incarceration
Operating without workers’ compensation coverage is a criminal offense in our state. Employers who are discovered to be guilty of operating without having purchased workers’ compensation insurance can face such penalties as up to $10,000 in fines, up to a year in jail, or both.
The Division of Labor Standards Enforcement will also issue a stop order when an employer operates without workers’ compensation coverage. When this order is in effect, employee labor cannot be used until insurance has been purchased.
When issuing a stop order, the Division of Labor Standards Enforcement will assess a penalty of $1,000 per employee on the payroll, although these additional penalties cannot exceed $100,000.
This information reveals an important truth about workers’ compensation in California: while purchasing it may seem costly, failing to purchase it can be much more expensive. That said, it may be possible to avoid or reduce significant penalties if you have been caught operating without workers’ compensation insurance if you have proper representation from the experts at our Marina del Rey uninsured employer law firm.
Lack of Workers’ Compensation Insurance Leaves Your Business Vulnerable to Employee Lawsuits
If an employee is injured in a workplace accident and does not have the option of filing a claim to recover workers’ compensation benefits because you never purchased workers’ compensation insurance, they could file a lawsuit against your company. The financial impact of losing your case might be substantial enough to drive you out of business.
The Importance of Hiring an Experienced Marina del Rey Uninsured Employer Penalties Defense Team
The information in this guide is not meant to scare you if you’re an employer in California. It’s simply meant to provide an accurate and honest description of the consequences you may experience if it is revealed that you have not purchased workers’ compensation insurance.
That’s not to say these penalties are unavoidable. If you have the right legal team on your side, your chances of staying in business and minimizing penalties will be much greater than they would otherwise be. To learn more about how a Marina del Rey uninsured employer defense attorney at Sacks Law Group, APC, can assist you, contact us online or call us at 310-216-7778.
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The workers’ compensation defense attorneys at our firm know how to build a strong wall of defense around employers, protecting California employers from frivolous and fraudulent workers’ compensation claims. Sacks Law Group, APC, is skilled at working with in-state and out-of-state employers on all workers’ compensation defense issues, particularly in the areas of:
Prior to any alleged injury or accident, we also counsel employers on ways to stay compliant with the ever-evolving California workers’ compensation laws. California employers benefit from our extensive experience and strong credentials when dealing with employee workers’ compensation fraud, as well as allegations of employer workers’ compensation fraud.
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