When a person goes to work, they fully expect that they will be protected if they are injured as a result of their work duties. The state mandates that all employers in California have workers’ compensation insurance for their employees. However, there are times with business owners, for various reasons, do not have coverage.
This can lead to major problems for both the employee and their employer.
Today, we want to talk about what the Uninsured Employers Benefits Trust Fund (UEBTF). It is there to protect employees who find themselves not covered because their employer did not provide insurance, but it is not an alternative to insurance coverage for employers. At Sacks & Zolonz, LLP, we are here to help business owners who are facing state charges for not having workers’ compensation insurance. If you need an uninsured employers attorney in Los Angeles, call us today.
Have you ever wondered what happens when an employee reports an injury at work only to find out that their employer does not have workers’ compensation insurance?
In California, the UEBTF is there to help. Here is the thing – employers do not want to rely on this method of insurance for their employees’ injuries. If an employee files a claim with the state for coverage through this route, their employer is going to be in a bit of trouble.
The state may not catch on right away that an employer is operating without insuring their employee, but when an injury does occur, they have options. According to the California Labor Code, you could face a $10,000 fine and up to one year in jail for not having workers’ compensation insurance for your employees. The state can also force you to stop operations until you get insurance and mandate you continue to pay your employees during the process.
We also need to warn employers that an uninsured worker can also file a personal injury claim directly against the business if there is no workers’ comp insurance. This means that any settlement will come directly from the company’s bottom line.
The UEBTF is there for employers who find themselves with no other coverage options, not as an insurance plan for employers to rely on.
We understand that there are times when business owners make decisions that they believe are in the best interested of everyone at the company but in reality can cause some problems. Not having workers’ compensation insurance is one of those decisions. State law requires coverage and employers should not consider this a viable cost-cutting measure. At Sacks & Zolonz, LLP, we want to help if you are facing charges of not having workers’ compensation insurance. The penalties for these charges can be severe and include jail time. When you need a Los Angeles uninsured employers attorney, you can contact us for a free consultation by clicking here or calling 310-216-7778.