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What happens if you neglect having Workers Compensation Insurance

What happens if you neglect having Workers Compensation Insurance

There are some penalties for employers who do not provide workers compensation insurance in California?

In California, all employers are required to provide workers compensation insurance for their employees. This insurance covers employees who are injured or become ill as a result of their work. If an employer does not provide workers compensation insurance, they may be subject to a number of penalties, including:

  • Fines: Employers who do not provide workers compensation insurance may be fined up to $10,000 per employee.
  • Jail time: In some cases, employers who do not provide workers compensation insurance may be sentenced to jail time. The length of jail time will depend on the severity of the offense.
  • Liability: Employers who do not provide workers compensation insurance may be held liable for the medical expenses and lost wages of employees who are injured or become ill as a result of their work.

In addition to the penalties listed above, employers who do not provide workers compensation insurance may also face other consequences, such as:

  • Damage to their reputation: Employees and customers may be less likely to do business with an employer who does not provide workers compensation insurance.
  • Difficulty attracting and retaining employees: Employees may be less likely to want to work for an employer who does not provide workers compensation insurance.
  • Increased insurance premiums: Employers who are found to have been illegally uninsured may be required to pay higher insurance premiums in the future.

The penalties for employers who do not provide workers compensation insurance are significant. Employers should make sure that they are in compliance with the law to avoid these penalties.