A recent report revealed that California may maintain the highest cost for workers' compensation in the nation. This may lead some employers to the decision that they should operate under a lack of insurance. Without insurance, a business may be exposed to providing hefty medical expenses should a worker be hurt. A lack of insurance may cost an employer thousands of dollars in the event an accident occurs and may require professional help to minimize legal consequences.
Because many companies realize the importance of a safe and healthy workforce, most take steps to ensure that conditions are optimal at their business locations. Despite the safety precautions an employer may take, there is a potential for a workplace accident in most any job, even in jobs that seem to be relatively safe. As a result, California requires employers to provide workers' compensation coverage to its employees. Uninsured employers may face some relatively serious consequences if they fail to provide such insurance.
Statistics show that many contractors with a lack of insurance in the state of California may be providing services to customers. Allowing employees to perform work duties without workers' comp coverage can place a business owner at risk of being discovered. In a recent surprise investigation, the California Contractors State License Board uncovered local contractors working with a lack of insurance and without licensure.
A report revealed that in the recent past, one sixth of all construction employees in California were misclassified or not reported to potentially avoid insurance and fair pay. This can place employers and their workers in a difficult situation if they experience an injury while at a job site, and there is a lack of insurance. As the economy recovers, California continues to grow its construction industry with a need for contractors.
An employer that has purchased workers' comp insurance from a false provider may be operating with a lack of insurance. In the event that an employee is injured while working, the lack of insurance may place a business in a very difficult financial situation. A California man was recently taken into police custody for allegedly selling fraudulent insurance to businesses.
Volunteering is not only a good way to give back to the community, it is a way for employees to make charitable contributions when they may not have the income to do so. It is an essential win-win for companies, whether they are multi-national corporations or small startups.
Despite the economic uptick in California, workers’ compensation fraud appears to be a persistent problem. A number of our posts have highlighted this issue, including the federal indictment of a state senator who took bribes in exchange for his influence in thwarting a bill that would have closed a loophole.
While a number of our posts have focused on workers’ compensation fraud, there is a growing problem among the manufacturing industry with regard to workers’ compensation costs. Essentially, the steady increase in costs has caused a number of smaller companies to relocate to other regions of the country.
In California, contractors are required to be licensed and maintain proper insurance. This includes workers' compensation insurance in the event that an injury on the job occurs. Should a worker be injured and suffer the financial hardship of medical expenses and lost wages due to their employer's lack of insurance, they may choose to pursue legal action to collect what is rightfully owed. Recently, a local contractor pleaded guilty for lack of insurance and a set of additional offenses.
At first blush, you may not think that operating rooms and construction sites, warehouses or other industrial settings have much in common. While this is obviously true from a functional perspective, these work sites actually all do share a common thread: an elevated risk of work injuries.