California’s workers’ compensation laws are among the most comprehensive in the nation. Virtually every employer in California is legally required to purchase workers’ compensation insurance.
Regardless, some employers choose not to do so. This can result in various penalties if a worker is ever injured on the job and learns they cannot file a claim to recover workers’ compensation benefits.
If you are a California employer facing any of the potential consequences of not purchasing workers’ compensation insurance, you need legal assistance to protect yourself and your organization. At Sacks Law Group, APC, a qualified Marina del Rey uninsured employer penalties expert can review the details of your case and provide a strong defense.
Operating without workers’ compensation coverage is a criminal offense in our state. Employers who are discovered to be guilty of operating without having purchased workers’ compensation insurance can face such penalties as up to $10,000 in fines, up to a year in jail, or both.
The Division of Labor Standards Enforcement will also issue a stop order when an employer operates without workers’ compensation coverage. When this order is in effect, employee labor cannot be used until insurance has been purchased.
When issuing a stop order, the Division of Labor Standards Enforcement will assess a penalty of $1,000 per employee on the payroll, although these additional penalties cannot exceed $100,000.
This information reveals an important truth about workers’ compensation in California: while purchasing it may seem costly, failing to purchase it can be much more expensive. That said, it may be possible to avoid or reduce significant penalties if you have been caught operating without workers’ compensation insurance if you have proper representation from the experts at our Marina del Rey uninsured employer law firm.
If an employee is injured in a workplace accident and does not have the option of filing a claim to recover workers’ compensation benefits because you never purchased workers’ compensation insurance, they could file a lawsuit against your company. The financial impact of losing your case might be substantial enough to drive you out of business.
The information in this guide is not meant to scare you if you’re an employer in California. It’s simply meant to provide an accurate and honest description of the consequences you may experience if it is revealed that you have not purchased workers’ compensation insurance.
That’s not to say these penalties are unavoidable. If you have the right legal team on your side, your chances of staying in business and minimizing penalties will be much greater than they would otherwise be. To learn more about how a Marina del Rey uninsured employer defense attorney at Sacks Law Group, APC can assist you, contact us online or call us at 310-216-7778.