What is a possible penalty when a California employer is found operating without required workers' compensation coverage?
Explanation
Failure to carry workers' compensation in California is a misdemeanor. Under Labor Code §3722, the Director of Industrial Relations may issue a stop-order halting business operations until coverage is in place, plus assess civil penalties (commonly cited at $1,500 per employee under the stop-order, with additional minimums). The employer also remains directly liable for any work injury costs.
Law Reference: Cal. Labor Code §3722This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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