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 §3700.5This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Related questions on this topic
- Return-to-work programs in workers' compensation are designed to:
- A subcontractor works on a general contractor's job site without workers' compensation insurance. If the subcontractor's employee is injured, who may be liable?
- A contractor hires their very first employee, a part-time helper. When must the contractor carry workers' compensation insurance?
- The Division of Labor Standards Enforcement discovers a contractor employing workers with no workers' compensation coverage. 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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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)