Workers’ compensation insurance in California
If you need assistance or help in a matter of workers’ compensation, the lawyers of Lluis Law can help you in whatever you need. Whatever your needs in workers’ compensation, Lluis Law’s expert lawyers have more than 40 years of experience representing workers in the Los Angeles area.
The California workers’ compensation law requires employers to have Compensation Insurance for their workers. Even companies that have only one employee, are required to contract an insurance policy with an insurance company or qualify to obtain an auto insurance.
The compensation insurance policy protects workers in case of injury or illness in the workplace. All workers in California, without exception, whether legal or illegal, are entitled to workers’ compensation benefits.
When employers violate this legal provision, they are exposed to harsh sanctions punishable by imprisonment and payment of very high fines. The violation of the California Labor Code (Section 3700.5) is punishable by a fine of up to $ 10,000 or imprisonment for up to one year. Sometimes both sanctions can be applied to the same employer.
This type of violation of the law is considered a punishable misdemeanor in California whereby in addition to monetary and prison sanctions, the state also applies additional penalties of up to $ 100,000 against uninsured employers (Labor Code, § 3722 (a/b)).
Workers’ compensation insurance is basically compulsory health insurance, which all businesses are required to provide to provide medical care and benefits to the worker when needed. These policies cover the California worker, regardless of whether or not the worker was at fault in the work accident that caused the injury.
This is because California is governed by the workers’ compensation system without fault. That is, the worker has the right to claim workers’ compensation benefits regardless of who was responsible for the work accident. In exchange for receiving these benefits, workers usually do not have the right to sue the employer, except in cases where they violate the Labor Law.
Do I need worker’s compensation insurance?
Both employers and workers need to have workers’ compensation insurance. Employers because they are subject to extremely drastic penalties for violating California’s labor laws, and workers because getting injured or sick is what guarantees that their expenses and other benefits will be fully covered.
It is convenient for employers and workers to have insurance policies contracted with serious and responsible companies that timely respond to claims without delay. An injured worker is an asset that loses the company, the faster can recover from an injury or illness the quicker can return to work to generate wealth for the employer.
Who pays the workers’ compensation insurance policy?
Workers’ compensation insurance premiums must be paid entirely by the employer; under no circumstances this cost can be charged partially or totally to the worker, because it is the sole responsibility of the employer to pay it. When an employer asks an employee to help pay the compensation insurance premiums he is making a serious mistake and an illegality.
Likewise, if the employer dismisses a worker after being injured so as not to pay compensation benefits, flagrantly violates the law and is subject to sanctions and civil suits. Nor can dismiss the worker under the argument that he/she was responsible for the accident.
If this happens, the worker should immediately seek legal help with an expert Los Angeles workers’ compensation attorney to study the case and determine the penalties that may apply to the employer, in accordance with the law and benefits that the worker can obtain through a civil lawsuit.
Who is protected by the Workers’ Compensation Law?
California’s labor laws protect and cover all workers regardless of whether they work full-time, part-time or are a rented worker. Also in cases where workers have papers (work permit or not) and their presence in the United States is legal or illegal.
According to the law, from public school teachers, to workers who perform dangerous jobs and even volunteer workers who provide services for profit, they may qualify to receive compensation benefits when they are injured or become ill.
What does the compensation insurance policy cover?
Insurance policies generally provide payments for the payment of medical bills (including medical fees, medicines and hospitalization), treatment and rehabilitation, payments of temporary or permanent disability benefits. Also, benefits for loss of work and death benefits.
Workers’ compensation insurance is required in almost every state in the United States. California is an independent state regarding worker’s compensation insurance, as are 10 other states of the union.
In these states, private insurance companies are allowed to sell insurance policies using their own classification system different from that established by the National Compensation Insurance Council that applies to other states of the country.
What is self-employment compensation insurance?
This is a perfectly legal option that employers can use when they do not want to purchase an insurance policy with an insurance company. In general, it is used by large companies to cover and comply with the workers’ compensation law.
The self-insurance requires the prior approval of the state and the company must have a net worth not less than $ 5,000,000 and annual net income in the order of $ 500,000, in addition to leaving a security deposit.
Currently, groups of small companies in specific production areas are making use of this option, through collective self-insurance. To do this, several employers agree and contract common health care services and compensation benefits for their employees.
The California State Office of Self-Insurance Plans offers information to employers about how to self-insure. The self-insurance system has been gaining popularity in recent years for the collective benefits it offers to small businesses.
Under this system, the employer has the option of managing workers’ compensation claims himself or can contract the services of an external or third-party administrator (TPA).
If you need help for yourself or a family member in a workers ‘compensation case or want a free consultation to evaluate the benefits you can get, contact the workers’ compensation attorneys at Lluis Law. Our telephone number is (213) 320-0777.
Address: 205 South Broadway, Suite 1000 Los Angeles, CA 90012. Tel: (213) 687-4412 Fax: (213) 687-3441.