Workers’ compensation is designed to help employees who sustain on-the-job injuries. The reality is that employers have to shell over a decent amount of money each month to ensure that their workers are covered, but this system does benefit all parties. However, there are various reasons why a Long Beach employer may be uninsured. Perhaps we are talking about a smaller family business. Maybe the business is not hazardous, and an employer assumes that no injuries will occur.
The reality is that California law dictates that all employers in the state who have one or more employees must have workers’ compensation insurance. If you are an uninsured employer in Long Beach, you and your business could be in trouble if an injury claim is made by an employee. At Sacks Law Group, APC, our team is here to help you through this process.
California Labor Code Section 3700 dictates that all employers with one or more employees must offer workers’ compensation to those employees in the event that they become injured while on the job. Although it is not a legal requirement that employers purchase workers’ compensation insurance through insurance carriers, they still must offer workers compensation benefits if a workplace injury occurs and a claim is filed. Employers may opt to self-insure, but by law, they cannot be uninsured (i.e., offer no workers’ compensation to injured employees).
When we look directly at California law regarding the failure to have workers’ compensation insurance, we can see that this is considered a criminal offense. Yes, the owner of a business can be charged with a crime if they do not have workers’ compensation insurance for their employees. This is punishable by up to one year in jail, a fine of not less than $10,000, or both.
Additionally, the state of California can issue penalties of up to $100,000 against illegally uninsured employers, on top of the criminal fine mentioned above. However, these are not the only penalties that uninsured employers in Long Beach need to be aware of. Some additional consequences can include:
In addition to these penalties, uninsured employers in Long Beach need to know that they will be exposed to civil lawsuits from injured workers. The workers’ compensation system typically prevents injured workers from filing civil personal injury lawsuits against the employer. However, if the employer has no insurance, the injured worker can file a civil personal injury lawsuit and recover massive amounts of compensation that will come right out of the business’s bottom line.
Our attorneys can offer legal advice to uninsured employers and can negotiate on their behalf in the courtroom. We will work to get penalties reduced and can assist you with exploring your options for getting insured, whether it means going through a carrier or otherwise. If you are facing legal issues due to being an uninsured employer, you want to have a skilled uninsured workers compensation defense attorney in your corner.
If you do not currently carry workers’ compensation insurance and want to discuss your options with an uninsured employers defense lawyer in Long Beach, the attorneys at Sacks Law Group, APC can help you get your business on track. Our knowledge and experience in workers’ compensation defense law make us the clear choice for employers who need assistance with getting their businesses in line with labor laws. We don’t just practice workers’ compensation defense—we wrote the book on it. Contact us today for a case evaluation.