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Uninsured Employers Workers Compensation

Uninsured Employers Workers Compensation is an important legal topic for workers who may have been injured on the job but are not covered by their employer’s insurance. In these cases, employees may be able to file a claim with their state workers’ compensation agency to receive benefits. Our firm can help you understand your rights and provide guidance on filing a claim for uninsured employers workers compensation. We are experienced in navigating the complex legal process and will work hard to ensure you receive the compensation you deserve. Contact us today to learn more about how we can help with your uninsured employers workers compensation case.

Reduce or Avoid Penalties

No one wants to face the Workers Compensation Appeals Board. If you have found yourself in this position, then you are in need of an attorney who can provide creative solutions. You have found that attorney in Law Offices of Kerry P. O'Brien.  Our priority is reducing the consequences you could face. Regardless of how impossible the odds may seem, with the right legal help you could minimize or even eliminate the penalties and fines you would otherwise face.

What the law states

In California, the law states that any employer of one or more people must have workers compensation insurance, unless all of their employees are family members. The purpose is to ensure that if an employee is injured on the job, there are benefits available to them.

Attempts to avoid liability can backfire

It is not uncommon for a company to face a workers compensation claim for someone who was not covered because the employer did not consider them an employee. Consider this example: A landlord hires a painter to work on their property between tenants. If that painter falls, and said painter is unlicensed and uninsured, then the landlord could face a workers compensation claim despite the fact that the painter was not a direct employee.

Another example is a company that hires a contractor. If that contractor does not have both a license and a workers compensation policy for their employees, then the business owner is at financial risk. When they pay an unlicensed and / or uninsured contractor, that contractor can become an employee for the purposes of workers compensation – despite the fact that no one intended for them to be an employee.

Workers compensation cannot be avoided by taking on other types of coverage

No matter what other types of insurance coverage a company has, they still need workers compensation. Liability insurance offers coverage if a non-employee is hurt on the premises. Medical insurance covers medical costs for conditions not related to work. When an employer does not carry workers compensation and they are not self-insured, as the law requires, then they are technically an “Uninsured Employer.”

The State takes on responsibility if the employer does not have coverage

If a person is injured on the job and their employer is an Uninsured Employer, then the State pays the benefits that are due to the worker. These benefits are paid from the Uninsured Employers Benefits Trust Fund and are awarded by the Workers’ Compensation Appeals Board.

You could be facing significant penalties

Due to the fact that the State pays the claims when an employer is uninsured, the state levies heavy penalties for not complying with workers compensation laws. It is not uncommon for us to work with an employer who did not realize how serious the consequences could be. In fact, significant penalties are possible – including criminal charges. You could be facing one or more of the following penalties:

  • $10,000 per employee

  • Misdemeanor charges with the potential for 364 days in jail and / or a fine of up to $10,000

  • A civil negligence lawsuit

  • Paying the attorney fees for the injured party

  • An order to stop business operations via court injunction

  • Forfeiture of your home, cars, and other assets

  • An assessment of up to 200% the workers compensation premium for the period during which you were not insured (up to three years)

The good news is that you have an aggressive, experienced, and creative attorney on your side. Reach out to Law Offices of Kerry P. O'Brien today at 562.308.0733 for your consultation.

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