What happens if Im caught uninsured between carriers and an employee is injured?
A. An employer’s failure to have workers’ compensation coverage is a criminal offense. Section 3700.5 of the California Labor Code specifies that it is a misdemeanor punishable by either a fine of up to $10,000 or imprisonment in the county jail for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers. If your insurance coverage lapsed and an employee was injured on the job, you are responsible for ensuring that all claims related bills are paid. Contact the information and assistance officer at the local DWC district office for further information. You may also contact the Uninsured Employers’ Fund.
