Under California state law, employers must get workers’ compensation coverage for their employees. In California, an uninsured employer is “any employer who has failed to secure the payment of compensation as required by Labor Code Section 3700” (§15560). What happens if your company has failed to get insurance coverage? You need to take proactive measures to resolve the matter. Here, our Sacramento workers’ compensation defense law firm provides an overview of the key things employers should know if they fail to obtain workers’ compensation insurance in California.
Know the Risk: Uninsured Employers Can Face Serious Penalties
Operating a business without workers’ compensation insurance in California is not only risky but also illegal. The state mandates that all employers provide the proper coverage to protect their employees in case of workplace accidents. Failing to comply with these regulations can result in severe penalties. A company could face penalties even if no employee is actually injured on the job. Even without a claim by a worker, an uninsured employer in California could face:
- Stop Order (Business Closure): The California Division of Labor Standards Enforcement (DLSE) can issue a stop order against your business—ceasing all operations until compliance is achieved.
- Fines and Penalties: Uninsured employers may face substantial fines. The maximum statutory fine could reach as high as $100,000.00.
- Criminal Charges: In extreme cases, operating without workers’ compensation insurance can lead to misdemeanor or felony criminal charges. A conviction could carry jail time.
Take Immediate Action: Obtain the Proper Workers’ Compensation Coverage
The sooner your company gets the proper workers’ compensation coverage, the better. Penalties will be far more severe for businesses that continue to float the law. Reach out to licensed insurance agents who specialize in workers’ compensation policies. They can guide you through the process, ensuring you get the coverage that best fits your business needs. You may also want to consider joining the California State Compensation Insurance Fund (SCIF).
The Next Step: Speak to a Lawyer (Reduce Liability Risk and Get in Good Standing)
A top-tier California workers’ compensation defense lawyer can help you review your specific situation and take action to get into good standing and reduce your total liability risk. Among other things, your attorney can review your situation and assess any potential liability arising from the period you were uninsured, provide guidance on minimizing any penalties, and ensure that your business is currently in full compliance with California’s workers’ compensation regulations.
Contact Our Sacramento Workers’ Compensation Defense Lawyers for Immediate Legal Help
At Yrulegui & Roberts, our Sacramento work injury defense attorneys have extensive experience representing uninsured employers. If you have any questions or concerns about navigating an uninsured employer matter, we are available to provide guidance and support. Give us a call now or contact us online to set up your confidential initial appointment. From our Sacramento office, we defend workers’ compensation cases in Sacramento County and throughout Central California.
