The state requires employers with three or more employees to carry workers' compensation insurance or complete an application process to become self-insured.
Employers who fail to do so may be subject to civil or criminal penalties, as well as liability for workplace accidents and injuries that would have otherwise been covered by a workers' compensation insurance policy.
Here's a quick overview of the potential penalties employers can face.
- Criminal penalties. Failing to maintain workers' compensation insurance coverage is a misdemeanor crime that, upon conviction, can result in a fine up to $10,000, one year of imprisonment—or both.
- Civil penalties. Employers who refuse to comply with regulations that require them to carry workers' compensation insurance may face fines of up to $5,000 for each violation.
- Civil liability. If an employee is injured in the workplace and the employer doesn't have workers' compensation insurance, an employer may be personally liable for compensating the employee for injuries and losses.
Obtaining compensation from an employer who failed to carry workers' compensation insurance can be challenging and often requires the representation of an experienced attorney who can file a request for hearing before a workers' compensation judge to seek the damages you deserve.
Hurt on the Job? Consult an Experienced Workers' Compensation Attorney About Your Case
The knowledgeable attorneys with Rechtman & Spevak can help you make sense of your legal rights and options when an employer fails to carry the workers' compensation coverage the law requires. Contact us today to schedule an appointment for a free, initial consultation.