Is my employer required to carry workers’ comp insurance?

An employer has an obligation to treat their employees with care and respect. That means paying them a fair salary, providing a safe work environment, allowing them time off when necessary, and more. An employer should also help to take care of an employee if they get injured on the job, which is why most employers have workers’ compensation insurance. Workers’ compensation insurance is meant to help an injured employee pay for their medical expenses and provide wage replacement during the period of time when they are unable to work.

While the process of getting workers’ compensation is usually straightforward, there can sometimes be complications, which is why legal experts like lawyers Ghitterman, Ghitterman & Feld recommend that injured employees get in touch with a workers’ compensation attorney just in case. If there are any problems or irregularities with the workers’ compensation claim, then their lawyer will be able to help.

Workers’ Compensation Requirements

In general, employers across the country in every kind of industry are required to have some kind of workers’ compensation insurance. However, the requirements differ from state to state; for example, in Florida only businesses with a certain number of employees are required to carry workers’ comp. But in California, every business, even ones that have only one employee, is required to have workers’ comp. In fact, any business that employs workers in California is required to carry workers’ compensation insurance even if the business has headquarters in a state with different workers’ comp regulations.

Part-time employees and independent contractors can apply for workers’ comp if they get injured on the job. In some states, like California, it is possible to get an independent contractor waiver that prevents independent contractors from getting workers’ comp, but California law assumes that anyone who works for an employer is an employee. That means if an independent contractor files a workers’ comp claim, then it is up to the employer to prove the contractor is independent and not an employee.

In California and other states, sole proprietors do not have to carry workers’ comp unless they are employed in a hazardous profession, in which case they need to carry workers’ comp for themself even if they have no other employees.

What If An Employer Does Not Have Workers’ Comp?

Every state punishes businesses for not having workers’ comp, but they each do so in a different way. In California for example, it is a criminal offense for a business to not have workers’ comp. Some of the penalties include the following:

• The courts will issue a stop order to the business. If the order is violated, then that could result in a fine of $10,000 or more and up to a year in the county jail.
• If an uninsured employer cannot provide benefits to a worker, then the Uninsured Employers Benefit Trust Fund can file a lien against the employer’s property.
• The Division of Labor Standards Enforcement could assess a penalty that causes the employer to pay twice the amount in premiums during the period when they were uninsured.
• The employer could be liable for a penalty of $10,000 per injured employee if their case is compensable, and a penalty of $2000 if the employee’s injury case is found to be non-compensable.