Insurance & LiensQuestion 457 of 1605
Cal/OSHA's Division of Labor Standards Enforcement discovers a contractor employing uninsured workers. What immediate action can it take at the job site?
a.Issue a stop order prohibiting the use of employees until coverage is obtained
b.Revoke the contractor's CSLB license on the spot
c.Seize the contractor's tools and equipment permanently
d.Order the property owner to pay the workers directly
Explanation
Under Labor Code §3722, the state may issue a stop order halting use of employees until the employer secures workers' compensation coverage. Penalties for being uninsured can reach up to $100,000.
Law Reference: Labor Code §3722Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)