Every California business that has employees is required to carry workers’ compensation insurance. Uninsured employers are taking significant risks that include the possibility of criminal prosecution. Below are some of the other consequences that employers face when they fail to carry this insurance designed to provide benefits for injured employees.
An employer that does not carry workers’ compensation insurance could face a lawsuit from an injured employee. Furthermore, the business may be forced to close due to this lack of insurance. The California Labor Commission may impose hefty fines on the employer. In addition, a company can be held liable for an injured worker’s attorney’s fees, along with a 10 percent surcharge for a disability claim.
If your company finds itself facing any of these issues due to a lack of current workers’ compensation insurance, seeking the advice and assistance of an attorney may prove beneficial. It may be possible to achieve compliance with regulatory agencies, resolve an injured worker’s claim and reduce — or eliminate — any fines and penalties. In addition, the company may require representation in any criminal proceedings initiated under these circumstances.
There are numerous reasons why an employer may not have workers’ compensation insurance. Mistakes and oversights happen, and uninsured employers have the right to representation during administrative hearings and appeals, along with any civil and/or criminal actions. Your business deserves the opportunity to correct its lack of insurance and get back on a track to success. No company should attempt to deal with these issues on its own considering the severity of the consequences it could face.