Insurance & LiensQuestion 103 of 690
A contractor operates without workers' compensation insurance. Cal/OSHA or the Labor Commissioner may issue:
a.A warning letter
b.Only a small administrative fine
c.A referral to the CSLB for possible license revocation
d.A stop order prohibiting employment of workers
Explanation
Operating without WC insurance can result in a stop order immediately prohibiting the use of employee labor, as well as substantial fines of up to $100,000. The CSLB may also suspend the license.
Law Reference: Labor Code §3722Practice all 690 questions free — no signup required.
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