It’s not uncommon for many employers in California to be out of compliance with employment laws in the state, specifically workers’ compensation laws. The laws companies have to follow to protect their employees are complex and the slightest oversight can lead to your company is out of compliance. A Marina Del Rey uninsured employers defense attorney from the Sacks Law Group, APC, can review your company’s insurance and determine if you are compliant or not.
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.
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:
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.
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.