A contractor illegally carries no workers' compensation insurance and an employee is injured. The employee may:
Explanation
Labor Code §3706 lets an employee of an employer that failed to secure the payment of compensation bring an action at law for damages as if the workers' compensation division did not apply, and §3708 presumes the injury was a direct result of the employer's negligence, places the burden of rebutting that on the employer, and strips the defenses of contributory negligence, assumption of risk, and negligence of a fellow servant. §3700.5 adds misdemeanor exposure. (a) invents a recovery fund California does not maintain for contractors, which is why the §7071.6 bond matters. (b) is the exclusive-remedy bargain the employer forfeits by going uninsured. (d) inverts the consequence of being uninsured.
Law Reference: Lab. Code §3706 / §3708 / §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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