Insurance & LiensQuestion 457 of 690

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 §3722

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