Insurance & LiensQuestion 456 of 1605
A contractor with employees knowingly operates without workers' compensation insurance. Under California law, this failure to insure is:
a.A misdemeanor, punishable by fine and/or imprisonment
b.A minor infraction punishable by a written warning
c.A purely civil matter handled only by the insurance carrier
d.Permitted as long as the contractor self-insures informally
Explanation
Labor Code §3700.5 makes it a misdemeanor for an employer to be unlawfully uninsured for workers' compensation. It is punishable by a fine, imprisonment in county jail, or both.
Law Reference: Labor Code §3700.5Practice all 1605 questions free — no signup required.
Related questions on this topic
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- Cal/OSHA's Division of Labor Standards Enforcement discovers a contractor employing uninsured workers. What immediate action can it take at the job site?
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- An employee covered by workers' compensation is injured on the job. Generally, the employee's exclusive remedy against the employer is:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)