Uninsured Employer Claims


Every employer in the State of California is required to provide workers’ compensation for every employee (Labor Code §3600 et. seq.). Failure to provide workers’ compensation coverage is a misdemeanor.

In order for a worker to be considered an independent contractor, there are a number of specific legal requirements to be observed. If these requirements are not met, it is probable that a worker will be considered an employee, and the person hiring the employee will be considered his employer, for purposes of California workers' compensation law. This can have extremely important consequences.

An employer in California whose employee sustains a job injury is required by law to have a policy of workers' compensation insurance, or to be legally self-insured (self-insurance requires a certificate to self-insure). It is unlawful for an employer to expect an employee to provide for his or her own workers' compensation coverage, and payments to an employee do not meet the employer’s obligations to provide for workers' compensation coverage.

Failure to carry such insurance also carries substantial civil penalties and adverse liabilities. An employer’s business may be subject to immediate closure by the State of California, and significant fines may be imposed for operating without workers' compensation insurance.

The law firm of Jerald P. Grainger is experienced in representing uninsured employers before the Workers' Compensation Appeals Board. Due to the nature of these cases, the firm requires that the client employer maintains a balance in the attorney-client trust fund sufficient to cover litigation expenses.