What are the penalties for an employer who does not have workers compensation insurance?
Employers operating without insurance are subject to civil fines and/or criminal penalties, including imprisonment, and are subject to a STOP WORK order issued to their business. Under MGL c. 152, § 25C, civil fines can be up to $ 250 a day, and criminal penalties include a fine of up to $ 1500, imprisonment for not more than a (1)year, or both. Additionally, a recent change to this section states, “(10) In addition to being subject to the civil penalties herein provided, an employer who fails to provide for insurance or self insurance as required by this chapter or knowingly misclassify employees, to avoid higher premium rates, will be immediately debarred from bidding or participating in any state or municipal funded contracts for a period of three (3) years and shall when applicable be subject to penalties provided for in (MGL c. 152) § fourteen (14)”.
Employers operating without insurance are subject to civil fines and/or criminal penalties, including imprisonment, and are subject to a STOP WORK order issued to their business. Under MGL c. 152, § 25C, civil fines can be up to $ 250 a day, and criminal penalties include a fine of up to $ 1500, imprisonment for not more than a (1) year, or both. Additionally, a recent change to this section states, “(10) In addition to being subject to the civil penalties herein provided, an employer who fails to provide for insurance or self insurance as required by this chapter or knowingly misclassify employees, to avoid higher premium rates, will be immediately debarred from bidding or participating in any state or municipal funded contracts for a period of three (3) years and shall when applicable be subject to penalties provided for in (MGL c. 152) § fourteen (14)”.
