Tesla Faced Fines For Labor Violations

June 15, 2019
Sacks & Zolonz, LLP
Los Angeles uninsured employers attorney

We know that owning and operating a business is tough. In fact, it can be downright hard to do with a continual change in labor regulations. If you find that you need a Los Angeles uninsured employers attorney, let us get to work for you today.

At Sacks & Zolonz, LLP, we will investigate the charges against you and your company and craft a skilled defense. Our goal is to get the charges against you dismissed so you can get back to running your business.

What is going on with Tesla?

We have learned that the state of California has fined Tesla and its former janitorial service. The state has accused them of not carrying workers compensation insurance for their custodians.

  • The California Labor Commissioner has cited and fined both companies for $84,000.

“The company was not paying for workers’ compensation insurance,” said Denise Velasco. She is the program coordinator for the Maintenance Cooperation Trust Fund, a state janitorial industry watchdog.

A spokesperson for Tesla said that the company “maintains workers’ compensation insurance for our employees at all times and requires proof of workers’ compensation from all of our contractors in order to work for Tesla.”

This is an interesting case. While we recognize that $84,000 is a drop in the bucket for a billion-dollar company, imagine smaller companies around the state getting hit with a fine like that.

The question is this – did Tesla obtain proof from the subcontractor that they provided workers’ compensation for their employees?

If they did, should they be held accountable for the actions of the subcontractor if they subsequently dropped insurance coverage?

We can see how this could easily be a problem for many companies in our area, both small and large. Many businesses use subcontracting services to handle things like janitorial services. Many construction companies hire subcontractors to handle parts of a larger job.

Could you find yourself getting fined even if you did your due diligence?

We need you to understand that the penalties for not properly ensuring workers go beyond fines. This is a violation of state law that can include jail time for those found guilty.

We will help you get through this

If you are facing charges from the state of California for a labor code violation, please seek legal assistance as soon as possible. You could be facing major monetary penalties and even jail time if you are found guilty. At Sacks & Zolonz, LLP, we are ready to help. Our knowledgeable and experienced team understands the issues you face as a business owner and operator. The laws are complex, but that does not mean you are a criminal. Let us get to work investigating the charges against you so we can work to get them reduced or dismissed altogether.

When you need a Los Angeles uninsured employers attorney, you can contact us for a consultation by clicking here or calling 310-216-7778. Let us get to work so you can focus on your business.

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