Insurance & LiensQuestion 1621 of 1632

A stop order is served on a contractor found employing six workers with no workers' compensation coverage. One of the six is later found to have a compensable injury from the uninsured period. Which assessments does Labor Code §3722 authorize?

a.$1,500 per employee with the stop order, and $10,000 per employee once the claim is compensable
b.$1,500 per employee with the stop order, and nothing further once the claim is found compensable
c.$10,000 per employee with the stop order, and $1,500 per employee for the compensable claim
d.One flat $100,000 assessment, which is the only figure §3722 authorizes in either situation

Explanation

Section 3722 assesses twice, on two different triggers. Subdivision (a) is issued together with the stop order, before anyone is hurt, at $1,500 per employee employed when the order is issued and served. Subdivision (d)(2) then adds $10,000 per employee employed on the date of injury once a claim is found compensable. The $100,000 in subdivision (f) is a CEILING on the total of these assessments, not a penalty in its own right, and the criminal exposure under §3700.5 sits on top of all of it.

Law Reference: Labor Code §3722(a), (d)(2), (f)

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