California Workers’ Compensation Insurance Requirements
Under California workers’ compensation insurance laws, employers with one or more non-family member employees must have workers’ compensation insurance. Having this insurance protects an employee if they suffer an injury on the job, are disabled in their line of work, or are killed on the job, providing benefits to the employee or their surviving family members.
The Penalties For Being an Uninsured Employer
Should a company not have the proper workers’ compensation insurance and an employee suffers an injury on the job, the company can face steep penalties. This is because the state pays the benefits to the injured employee out of the Uninsured Employers Benefits Trust Fund, which is then reimbursed with the money paid by fines assessed to employers. Uninsured employers can face the following penalties:
- A civil negligence lawsuit, with negligence being presumed on the part of the employer
- A penalty of no more than $10,000 per employee
- Prosecution of a misdemeanor, which comes with a fine of up to $10,000 and/or up to one year in jail
- Repayment of the attorney’s fees for the employer
- A court injunction ordering the business to cease operations
- Assessing a fine of up to 200%, which is double the premium for workers’ compensation insurance, for the period the company was uninsured up to three years
- Attachment of vehicles, properties, and financial accounts
Other Forms of Insurance Don’t Supersede Workers’ Compensation
It’s important to note that other forms of insurance, such as liability coverage, don’t supersede workers’ compensation insurance. This means that even if your business has liability coverage, it must still have workers’ compensation coverage if there is more than one non-family member employed. Liability coverage only applies to property damage or injuries caused to non-employees at your business. Medical insurance helps to cover the medical costs for issues unrelated to work. If your business does not have workers’ compensation insurance and is not self-insured, then California will deem the business uninsured.
Companies that hire contractors can still face workers’ compensation claims if the contractor does not have workers’ compensation insurance for its employees. Simply hiring the contractor does not absolve the company from needing workers’ compensation insurance of its own.
Contact an Uninsured Employers Defense Attorney Today
Was your company sued by an employer for lack of insurance or not enough insurance? Are you unsure if your company is compliant with California insurance laws? If so, it’s time to speak with an experienced Marina Del Rey uninsured employer’s defense attorney. Call the Sacks Law Group, APC, at 310-216-7778 or submit our contact form to schedule a consultation today.
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READ THE REVIEWSEmployers Workers' Compensation Defense
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.