California law requires most employers to carry workers’ compensation insurance. This coverage protects both employees and businesses when workplace injuries occur. But if an employer skips this requirement, the consequences can be severe for everyone involved.
Penalties for uninsured employers
Under state law, employers who fail to carry workers’ compensation insurance commit a misdemeanor. They can face fines up to $10,000 and possible jail time. The state may also add penalties reaching $100,000.
Without insurance, employers must personally cover the full cost of an injured worker’s medical bills and lost wages. These expenses can quickly add up and threaten the survival of the business.
How injured workers can still get benefits
When an employer lacks coverage, injured workers can still file a claim through the Uninsured Employers Benefits Trust Fund (UEBTF). This state-managed program helps pay for medical care and disability benefits.
To qualify, the worker must show that the injury happened on the job and that the employer had no valid insurance at the time. While the process can take longer than a standard claim, the fund ensures workers receive needed support after being injured in a workplace accident.
Protecting your rights after a workplace injury
Workers hurt while employed by an uninsured business should report the injury right away and document every detail. Photos, time records, and witness statements can help strengthen a claim. Contacting the California Department of Industrial Relations can also help workers start the UEBTF process and secure access to medical treatment and wage replacement.
Why awareness matters
Knowing your rights under California’s workers’ compensation laws helps prevent unnecessary setbacks after an injury. Informed workers and responsible employers create safer job environments and ensure every workplace injury gets proper attention and care.