After you have suffered an occupational injury or illness, the medical
bills can quickly pile up. That is where workers’ compensation comes
in. The workers’ comp process is designed to provide financial relief
to employees who have suffered on-the-job injuries and illnesses. Are
all employers required to provide workers’ comp coverage?
Workers’ Comp Requirements in California
In the state of California, employers with 1 or more employees must have
workers’ compensation insurance. This is in accordance with the
California Labor Code Section 3700. Directors of corporations and executive
officers must also be covered by workers’ compensation insurance.
However, if they fully own the corporation, they may opt out of workers’
Employers may purchase workers’ compensation insurance coverage from
a licensed insurance company. They also have the option of purchasing
workers’ compensation insurance through the State Compensation Insurance
Fund. Employees must not be required to pay for workers’ compensation
coverage, as the insurance is part of the cost of business.
Penalties for Failing to Comply with Workers’ Comp Requirements
Failing to purchase workers’ compensation insurance for employees
is a criminal offense. Under the California Labor Code, employers who
fail to provide workers’ compensation benefits could be charged
with a misdemeanor.
Penalties for being illegally uninsured include:
- Fines of up to $10,000
- Imprisonment in the county jail for up to 1 year
- Additional penalties of up to $100,000 by the state
If an employee is injured on the job, and the employer does not have workers'
comp insurance, the employer will be responsible to pay for all medical
bills and other costs related to the injury or illness. Furthermore, the
employer may be held liable in a civil lawsuit. With the penalties so
severe, it is important for all employers to purchase workers’ compensation
insurance coverage for their employees.
The Law Offices of Wax & Wax provides aggressive representation to
Contact our Glendale workers' comp attorneys today to discuss your options for filing a workers' comp claim in