Under state law, businesses not carrying valid workers' compensation coverage are considered uninsured and face a "Stop Notice and Penalty Assessment" from the Labor Commissioner and fines of $1,500 per employee, up to $100,000. If an injury occurs, the fine increases to $10,000 per employee. A worker injured while working for an uninsured employer can sue for damages and the employer is presumed negligent in such cases.
The Uninsured Employers Benefits Trust Fund (UEBTF), a program funded by user assessments and administered by DIR's Division of Workers' Compensation, pays claims to injured workers when illegally uninsured employers fail to pay workers' compensation benefits. Costs due to illegally uninsured employers exceeded $30 million in fiscal year 2009-10.
The California Department of Industrial Relations' Division of Labor Standards Enforcement adjudicates wage claims, investigates discrimination and public works complaints and enforces state labor law. Additional information on labor laws and work-related topics are available on our Web site, as well as on Facebook and Twitter.
Employees with work-related questions or complaints may call the California Workers' Information Hotline at (866) 924-9757 for recorded information on a variety of work related topics.CONTACT: Erika Monterroza Peter Melton (510) 286-1161Twitter @CA_DIR Facebook Internet: www.dir.ca.gov SOURCE California Department of Industrial Relations, California Labor Commissioner