Workers Comp Violations
Business owners want to find ways to cut costs and improve their bottom line. The problem is, this type of thinking sometimes leads them to neglect key safeguards such as workers’ compensation insurance. Some employers mistakenly think of this benefit as an unnecessary expense, particularly if none of their employees have been seriously hurt on the job. However, these business owners risk a lot: fines, lawsuits, and even jail time. Here’s what you need to know about workers’ compensation violations.
Is Workers’ Compensation Insurance Mandatory?
Workers’ compensation insurance is available in all 50 states. Most states require employers to purchase coverage as soon as they hire their first employee. Others don’t mandate it until a certain threshold has been reached.
Not every company is required to have workers’ compensation insurance. Companies can legally operate without it if:
- They haven’t reached the threshold of employees for mandatory coverage
- They are owned and run by one person
- They employ only immediate family members (depending on state)
- They are located in Texas, where workers’ compensation insurance is voluntary for most business owners
What Are the Penalties for Not Having Coverage?
If a business that’s required by law to carry workers’ compensation insurance is found to be operating without it, the company can face major penalties. In California, for example, the state can fine illegally uninsured businesses up to $100,000. In Pennsylvania, noncompliance can lead to jail time.
What Recourse Do Injured Employees Have for Noncompliant Employers?
Business owners face more than the prospect of fines or possible jail time: They can also be sued by their employees. If an employee works at a company that is required to have workers’ compensation insurance but doesn’t, they can file a lawsuit against the employer to recover financial compensation for medical expenses.
Contact a Workers’ Compensation Attorney Near You
If you’ve been injured on the job, don’t hesitate to contact the workers’ compensation attorneys at Morgan & Morgan. We can handle each step of the process and give you the best chance of recovering the compensation you deserve. Fill out a free legal case evaluation to learn more.