Most employers are required to carry workers’ comp insurance
Workers’ compensation is a system of insurance that is designed to ensure that workers who are hurt on the job or who develop an occupational illness get the benefits that they need to get better. Because workers’ comp is no-fault, employees don’t have to prove that their employer did anything wrong in order to recover benefits such as medical treatment and lost wages.
Generally, every employer in California with one or more employees is required to carry workers’ compensation insurance. The only exception to this rule is if the employer chooses to self-insure. This requires the company to prove that it has enough money to pay all workers’ compensation claims that may become due during the policy year, and to hire a third party administrator to handle each claim. To qualify for self insurance, an employer must obtain a certificate from the Director of Industrial Relations and provide a security deposit to the state of California that will be used to pay workers’ comp benefits if it fails to pay the benefits itself.
According to a California workers’ comp attorney, if an employer fails to obtain workers’ compensation insurance, they may be subject to both criminal and civil penalties. An employer may be charged with a misdemeanor crime, punishable by up to 1 year in jail. They may also have to pay a penalty of up to double the amount of the workers’ compensation premium, but not less than $10,000. In addition, an injured employee’s award for permanent disability will be increased by 10% if their employer does not have workers’ compensation insurance. The employer will also be barred from hiring or keeping any employees on until it obtains insurance. If you want to know if your employer has workers’ compensation insurance, you can check their status online.
If you are hurt at work and your employer does not have workers’ compensation insurance, you can file a personal injury lawsuit against the company. Typically, workers’ comp is an exclusive remedy. This means that employees are usually limited to workers’ comp, and cannot sue their employers to recover for a workplace accident or illness (although workers can file a lawsuit against a third party who is responsible for their injury or illness).
However, if your employer did not carry workers’ comp insurance as required by law, then you can file a personal injury lawsuit against them. To file this type of lawsuit, you must first prove that your employer did not have workers’ compensation insurance at the time of your employment. With this type of case, there is a presumption that the employer was at fault for the injury. Your employer can try to rebut the presumption by showing that you were at least partially at fault. This is in contrast to most personal injury cases, where the burden is on the victim to prove that the other party caused their injury. If your employer cannot pay your benefits out of pocket, then the Uninsured Employers Benefits Trust may pay your benefits.
PLBH represents employees who have been injured at work and who have developed occupational illnesses. We have substantial experience with the California workers’ compensation system, and use our knowledge to help our clients obtain the best possible recovery. To learn more or to schedule a consultation with a California workers’ comp attorney, reach out today at (800) 435-7542 or info@plblaw.com.