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.
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.
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.
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.