Uninsured Employers May Threaten Business Viability

All workers in California are entitled to workers’ compensation coverage in the event of them suffering workplace injuries. Uninsured employers will have to face severe consequences if such claims are filed. These may include fines and prosecution, and business owners may need the services of experienced workers’ compensation defense attorneys to minimize the consequences.

The failure to carry workers’ compensation insurance can threaten the viability of a company as civil lawsuits and criminal prosecution may follow workers’ injuries. The California Labor Commissioner may impose significant fines. There is also a possibility of injured workers filing civil lawsuits, and criminal convictions may also include personal fines. When workers take legal action against uninsured employers, a 10 percent surcharge may be imposed along with the disability claim, and the company may also be responsible for the legal fees.

Experienced attorneys such as those at Sacks Law Group, APC, can advocate for uninsured employers who have to face such problems. There are steps that can be taken to limit the consequences. An experienced attorney can provide legal counsel in any action brought against a company.

In addition to providing representation for legal actions and addressing the immediate issues, Sacks Law Group, APC, can advocate on behalf of uninsured employers in appeals and other administrative actions. An attorney can negotiate with regulatory agencies for accommodation that will enable the business to proceed in full compliance with the laws related to workers’ compensation insurance. With the counsel of an experienced workers’ compensation attorney, a California business owner may avoid the financial risks of lawsuits by injured workers.