Posted on May 7th, 2018
Without proper workers’ compensation insurance you could find yourself in some real hot water if an employee gets hurt on the job.
From the impressive Golden Gate Bridge to the allure of Hollywood. The amazing weather, diverse population, and gastronomic delights. And let’s not forget the jaw-dropping sunsets and breath-taking nature.
These and so much more are some of the many other reasons people want to live and work in The Golden State.
It’s an amazing state, with many of the best companies in the world to work for headquartered here.
But as an Employer you need follow all types of regulations to operate your businesses. One of the key things to understand is the importance of workers compensation insurance.
In other words, as someone who owns a business (or planning to launch one), you need this type of insurance to operate legally. No matter how small your company is, so long as you have at least one employee, the law requires this of you.
Let’s look at this type of insurance closer so you can realize just how crucial it is to your business.
California’s Workers’ Compensation Insurance Law
As an employer, you have the legal obligation to take reasonable care of your people. Besides that, when your employees get sick or they become injured, productivity drops. This then results in your business suffering too.
But accidents are accidents, and they can happen to anyone at any given time. Even if you’ve taken the necessary steps to keep the workplace safe and healthy, they can still happen to your people.
It’s for this reason that workers’ compensation insurance exists. And why the State of California mandates all businesses with at least one employee to get it.
Yes, it’s the law to give your people this type of insurance. Keep in mind that the Government takes this seriously.
To the point that it considers uninsured businesses to be criminal offenders!
The point being, the last thing you want is to face the wrath of the government or even a lawsuit for not having workers comp.
A Multi-Purpose Protection
Workers’ compensation insurance ensures employees that they will receive appropriate medical care and just compensation in the event they meet an accident at work. For the employer, this means protection against fines, penalties, and lawsuits.
Again, with accidents putting everyone at risk, it’s an insurance policy your business can’t afford not to have.
The Severe Penalties for Non-Compliance
It pays to know just what the State of California does to offenders of its workers’ compensation insurance law. This way, you can have a clearer picture of what we meant when we said ‘seriously.’
If the Division of Labor Standards Enforcement of the State (DLSE) finds out that an employer hasn’t purchased coverage for their workers, they will serve said employer with a ‘stop order.’
This means a complete stop on operations. This means no one can work. No new hires either.
Continued operations despite the order, and a misdemeanor charge follows. The Government punishes those with this charge through none other than imprisonment! That’s up to 60 days in jail.
That, and a hefty fine amounting to $10 thousand dollars.
Furthermore, the DLSE may also charge a penalty of $1,000 per employed person. So, for a business that has 20 employees, this means another $20,000 in penalties alone.
And then there’s the liability. If an employee of an uninsured company sustains injuries or develops a work-related illness, the employer pays for all medical and hospital bills. The employee can even serve his/her employer with a civil action.
All these point out the fact that the numbers are just too big for you to ignore. So, as soon as you have your first hire, don’t delay getting that workers’ compensation insurance policy.
Don’t Wait to Get Served
Workers have every right in this State to file a lawsuit against their employer due to non-compliance. You most definitely want to avoid receiving a serve notice. Because that can mean thousands and thousands, even millions of dollars in liability payments.
Just take the case of Antonio Enriquez, one of the biggest 2004 headliners in California news. The then-18-year-old employee fell from a scaffold, resulting in a traumatic brain injury. His lawyer, Christopher Asvar, secured a total of $8.9 million settlement on his behalf.
According to many industry experts, this is the highest-known amount paid in the history of California’s workers’ compensation insurance settlement.
As you can see, there’s no room for you to leave uncovered with insurance. You can easily lose your business without this. In fact, you can lose everything when you don’t insure your workers.
The Takeaway: Your Business Needs Insurance and Guidance
As a business owner in California, this type of insurance is a fact of life. But it doesn’t mean you should just willingly accept lawsuits or charges.
What this means, however, is you need guidance when it comes to understanding insurance for your workers. Your roles as an employer are difficult enough without the complex California employment laws making your head throb even more.
If you haven’t purchased employee compensation insurance yet, that’s the first thing you should do before anyone gets hurt or meets an accident. Always keep in mind that all workplaces, no matter how impressive their safety policies are, are still at risk for accidents.
Next, seek legal advice as soon as possible. Keep in mind though that workers’ compensation isn’t the only facet of employment law in The Golden State. You also need to know the laws surrounding the following:
- Overtime payment
- Wage and hours
- Wrongful termination
- Severance agreements
- Sexual harassment
- Discrimination
- Trade secret protection
The above isn’t all-inclusive, but you get the idea that there’s a lot more beyond workers’ comp. And if the numbers associated with workers’ compensation is enough to scare you, just imagine what the others can do.
Protect Yourself and Your Assets Now
With California employment laws being as strict and punishing as they are, you need to act before it’s too late and someone gets injured at the workplace. That one month you’re thinking of going without protection? That can already mean 30 days of high risk for injuries and accidents.
You don’t have to carry the burden alone. That’s why we’re here.
We won’t just help you remain in compliance with California laws. We’ll also defend your rights as an employer in the event a disgruntled employee files a lawsuit against you.
Book with us now to find out how our services can protect you and your assets.
