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Posts tagged "Uninsured Employers"

The risks of not carrying workers’ compensation insurance

As an employer in California, you are required by law to have workers’ compensation insurance to protect yourself and your employees. If an employee does get injured and it is discovered you do not have insurance coverage, you could face serious penalties. At Sacks & Zolonz, LLP, we understand the complications that can arise in such a situation. So you can avoid penalties and other issues, you must understand the law and what it requires of you.

Defining who is an employee

As most of those who employ people in Los Angeles likely know, state law requires that any company or party for whom more than one employee works is required to carry workers’ compensation insurance to protect its workers. Yet how the state defines an employee may be the determining factor as to whether or not one who may employ someone informally (i.e., a landlord paying a person to handle the landscaping duties on his or her property, a parent paying a neighbor to babysit his or her kids multiple times in a week) is required to comply with this law.

Consequences for uninsured employers

If you are a business owner in California, failing to have insurance to cover workers' compensation claims could cause serious trouble for you and your company. Here at Sacks & Zolonz, we understand the difficult position your company could be in if you are unprepared for a claim, and we want to help mitigate the consequences.

Workers' compensation requirements

Are you an employer in California? If so, you should know what the state mandates in terms of your requirement to provide insurance for your employees should they become injured or ill due to a job-related situation or incident. As explained by the State of California, Department of Industrial Relations, workers' compensation coverage is put totally on the shoulders of you, the employer. Employees should not be asked nor required to contribute to any premiums for this type of insurance.

What is backdated liability coverage?

Your workforce is one of the most valuable resources your Los Angeles small business has. While you no doubt want to provide every workplace protection you can for your employees, the cost of worker’s compensation insurance may be prohibitive. However, if your company is legally required to carry such coverage, and one of your employees is injured on the job, you and your company could be facing, among other things, substantial fines. According to the Society for Human Resource Management, if one of your employees happens to file a claim that goes before the California Workers’ Compensation Appeal Board, you could be fined up $2,000 for each employee on your payroll if the claim is non-compensable, or $10,000 per employee if the accident is compensable.

Securing a better outcome as an uninsured employer

If you are an uninsured employer and do not have workers' compensation coverage when an employee is hurt at work, you may face harsh consequences. Not only could you spend time behind bars, but you may also be hit with steep fines and have a shattered reputation. At Sacks & Zolonz, we understand the different ways that failing to offer workers' comp can completely upend the lives of business owners in Los Angeles, and the rest of California.

What happens if I do not have workers’ compensation insurance?

As an employer in California, you have to be concerned with what happens if an employee gets injured on the job. The California Department of Insurance notes that all employers must have workers’ compensation insurance. It does not matter if you have only one employee or you have 200 employees, you are legally required to carry the insurance. Trouble starts if you do not have it.

Can illegal employment risk workers’ compensation?

When it comes to your company’s workers; compensation policy, non-traditional contracts and loopholes can create significant stress, both for you as well as your employee. Injuries that occur to employees who are working illegally in California may disqualify the worker from receiving any compensation. In order to understand how this works, it is important to clarify the multiple meanings of the word “illegal” in this statement.

What is the Uninsured Employers Benefits Trust Fund?

If you get injured on the job in California, you are entitled to payment for your medical expenses through workers’ compensation. Employers are legally required to carry this insurance, but some employers may choose not to carry it. If this happens, you are not left without recourse should you get injured. The state has set up the Uninsured Employers Benefits Trust Fund, which will step in and pay what workers’ compensation should have.

The real cost of uninsured employers

When it comes to ensuring the health of employees, the government has sought to protect workers by requiring businesses to maintain a workers’ compensation insurance policy. Some businesses try to avoid paying premiums by neglecting this type of insurance, but the real cost of this illegal action may be surprising.

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