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?
Explanation
§3710.1 is the immediate remedy: where an employer has failed to secure the payment of compensation as §3700 requires, the director shall issue and serve a stop order prohibiting the use of employee labour until the employer complies, and it takes effect the moment it is served. The employer may protest in writing within 20 days and the hearing follows within five days, but the work stays stopped meanwhile, and any employee idled by the stoppage must be paid by the employer for the lost time, up to 10 days. The money follows: §3722(a) assesses $1,500 per employee employed when the order is served, §3722(b) assesses the greater of twice the premium that should have been paid or that same $1,500 per employee for the uninsured period, and §3700.5(a) makes the failure a misdemeanour carrying up to a year in county jail and a fine of up to double the premium but not less than $10,000 — rising under §3700.5(b) to triple the premium and not less than $50,000 on a second conviction. (b) belongs to the registrar and follows a disciplinary proceeding, not a site visit, though B&P §7127(a) lets the registrar issue its own stop order. (c) has no statutory basis, and (d) shifts to the owner a debt the statute puts on the employer.
Law Reference: Labor Code §3710.1; §3722(a)-(b); §3700.5(a)-(b); Bus. & Prof. Code §7127(a)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
Practice all 1632 questions free — no signup required.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Related questions on this topic
- 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?
- A contractor with employees knowingly operates without workers' compensation insurance. Under California law, this failure to insure is:
- Workers' compensation in California is described as a "no-fault" system. What does this mean for an injured employee?
- An employee covered by workers' compensation is injured on the job. Generally, the employee's exclusive remedy against the employer is:
- A roofing corporation has two shareholders who are also its only officers, and no other workers. Regarding workers' compensation coverage for themselves, they may:
Last reviewed: · editorial process