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.
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.
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.
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.
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.
As an employer, you may have a number of obligations related to your business. For example, you may need to hire staff for an upcoming season or you could be dealing with an employee's lawsuit. However, you could find yourself in a particularly difficult situation if you are uninsured. In Los Angeles, and across the entire state of California, employers are required to provide workers' compensation coverage, even if they only have one employee. If your business does not have workers' comp, you could face various consequences, including stiff fines.
Employers in California and elsewhere are typically obligated to purchase insurance meant to provide benefits to workers who are injured on the job. When a worker gets hurt and files a claim, the benefits received can help replace lost wages (if an injury has rendered the person unable to work) and can also help alleviate financial debt associated with medical bills and other treatments. Many uninsured employers run into problems, as evident in a recent ongoing issue concerning farmers---especially, those on family-run farms.
California employers face many types of challenges regarding employer/employee relations in the workplace. When a worker is injured, the situation may be complicated. However, if an employer has purchased required workers' compensation insurance, there shouldn't be much of a problem so long as the appropriate reports and claims are filed. Uninsured employers, however, may face significant problems that are best addressed alongside experienced guidance.
California law requires employers to purchase workers' compensation insurance to provide benefits for employees who suffer injuries on the job. Uninsured employers may find themselves facing serious legal challenges that might include criminal prosecution or substantial monetary fines. Navigating the legal system in such circumstances can be both complicated and stressful.
All workers in California are entitled to workers' compensation coverage in the event of them suffering workplace injuries. Uninsured employers will have to face severe consequences if such claims are filed. These may include fines and prosecution, and business owners may need the services of experienced workers' compensation defense attorneys to minimize the consequences.