Laws are nuanced when it comes to your employees’ rights and protections. Providing workers’ compensation insurance is an important aspect of employer law that you and other California business owners need to understand.
As FindLaw explains, most companies in California and elsewhere are required to provide workers’ compensation insurance, with few exceptions that would make a company exempt – for instance, owning a very small company with fewer than four employees or solely staffing independent contractors, rather than those classified as legitimate employees. An independent contractor, as you may know, is someone who provides his or her services to a company independently and is considered self-employed.
A workers’ compensation claim can be costly, and some employers may attempt to keep these costs to a minimum by denying or discriminating against an employee who seeks workers’ compensation. However, there are consequences you can face for not providing workers’ compensation when you are required to do so. You may end up being fined or face civil liability and criminal prosecution. Additionally, you can face further legal action for retaliating against an employee who files for workers’ compensation or discouraging an employee from filing a rightful claim.
Workers’ compensation is vital for employees who are hurt or become sick in job-related incidents. The benefits are intended to cover their work-related medical expenses and may also compensate them for their wages as they recover from their injuries. The information in this blog is meant for educational purposes, and therefore should not replace the advice of a lawyer.