EmploymentQuestion 1001 of 1605
When the Division of Labor Standards Enforcement discovers an employer operating without required workers' compensation coverage, one immediate enforcement action it can take is to:
a.Issue a stop order prohibiting the use of employee labor until coverage is obtained
b.Order the employer to pay all past wages in cash
c.Automatically revoke the contractor's driver's license
d.Seize the employer's business bank accounts without notice
Explanation
Under Labor Code §3722, the state can issue a stop order that immediately prohibits the illegally uninsured employer from using any employee labor until it obtains coverage. Violating a stop order is itself a misdemeanor, and penalties of up to $1,500 per employee (and more) may be assessed.
Law Reference: Labor Code §3722Practice all 1605 questions free — no signup required.
Related questions on this topic
- Who is responsible for paying workers' compensation insurance premiums?
- A contractor with three employees carries no workers' compensation insurance. Under Labor Code §3700.5, failing to secure the required coverage is:
- An employee of an illegally uninsured contractor is injured on the job. What special legal right does the injured worker gain because the employer had no coverage?
- As of January 1, 2026, under the phase-in enacted by SB 216, which licensed contractors must carry workers' compensation insurance?
- What happens to a contractor's license if the required workers' compensation coverage lapses and no exemption is on file?
- A licensed general contractor hires an unlicensed subcontractor who brings his own crew but carries no workers' compensation insurance. If one of that crew is injured, who is most likely liable to provide workers' compensation benefits?
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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)