Insurance & LiensQuestion 1519 of 1605
Willfully failing to secure required workers' compensation insurance in California is:
a.A civil infraction only
b.A crime (misdemeanor) subject to fines and possible imprisonment
c.Not penalized if premiums are later paid
d.Allowed for contractors with fewer than three employees
Explanation
Labor Code §3700.5 makes it a misdemeanor for an employer to willfully fail to secure workers' compensation coverage, punishable by fine and/or imprisonment, in addition to civil penalties and license suspension. The obligation is taken very seriously in California.
Law Reference: Labor Code §3700.5Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)