Employers in California must ensure that their employees are covered under workers’ compensation insurance. The laws in California explicitly make this requirement, and authorities work diligently to hold employers accountable for their actions if they fail to provide these benefits to employees. However, there are times when employers choose to self-insure their workers’ comp benefits. This is allowable under California law, but it is vital that employers do this correctly. At Sacks Law Group, APC, our qualified and experienced workers compensation defense attorneys in Los Angeles and Culver City are ready to help you with these issues.
Yes, employers in California are allowed to self-insure their workers. According to the California Department of Industrial Relations, there are approximately 2.2 million California workers covered by self-insured employers. However, if you are considering doing this as an employer, there are various requirements in place. It is strongly suggested that you work with a skilled workers compensation defense attorney to ensure you go through this process appropriately.
Those who wish to self-insure their workers’ compensation liabilities will need to apply to the Office of Self-Insurance Plans (OSIP) for approval. Any organization wishing to self-insure employees must meet the following requirements:
Employers that self-insure employees are required to provide the same scope of benefits as an insurance company. New self-insurers in California will be required to use a licensed third party administrator during the first three years of their self-insurance. Self-insurers will still be subject to audits by the Division of Workers’ Compensation.
At Sacks Law Group, APC, our attorneys have extensive experience helping employers with all workers’ compensation matters. We understand that it is a serious violation to not have proper coverage for employees. Not only will an employer face significant financial penalties for failing to provide appropriate workers’ compensation insurance, but they could also face criminal penalties.
Our attorneys will also be able to assist in resolving any workers’ compensation insurance disputes that arise for self-insured entities. Because we understand the law and the requirements, we are well-suited to get you through any dispute that needs resolution.
If you are an employer in Los Angeles, Culver City, or the surrounding areas, let us help you when it comes to self-insured workers’ compensation insurance. At Sacks Law Group, APC, we have extensive experience handling these matters for clients. We understand the requirements under California law, and our goal is to make sure that you remain legal at all times. When you need a Los Angeles or Culver City workers’ compensation defense attorney, you can contact us for a consultation of your case by clicking here or calling 310-216-7778.