Workers' CompensationQuestion 203 of 215
What is a possible penalty when a California employer is found operating without required workers' compensation coverage?
a.A criminal misdemeanor charge plus monetary penalties and a stop-order shutting down the business until coverage is obtained
b.A written warning only on the first offense, with no fine
c.Loss of the employer's federal tax identification number
d.A one-year delay before the employer may apply for any insurance
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 §3722Practice all 215 questions free — no signup required.
Related questions on this topic
- Under California Labor Code §3700, which employers are required to carry workers' compensation insurance?
- Workers' compensation in California is best described as which type of system?
- The standard Workers' Compensation and Employers Liability policy is divided into two main coverage parts. What does each part cover?
- What is the California minimum limit typically required for Part Two — Employers Liability coverage?
- An injured employee unable to work while recovering from a workplace injury is entitled to temporary disability (TD) benefits. How is the TD rate generally calculated?
- Permanent disability (PD) benefits in California are paid based on what factor?
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