California Workers Compensation Insurance operates as an 'no fault' system. This means that the benefits are paid to the employee regardless of who is responsible for the work related injury. The benefits are paid regardless who is to blame. This allows most California Workers Compensation Insurance claims to be resolved without any problems or issues. Most issues that occur happen to be about how much benefit an employee should receive.
Does My Company Require California Workers Compensation Insurance?
California Workers Compensation Insurance requires that if you company has atleast 1 employee that you have to carry Workers Comp coverage. Roofers are often required to have Workers Compensation Insurance even if they do not have employees. If you are an out of state company looking to do work in California, it is required that you have California Workers Compensation Insurance coverage.
Who is Exempt From California Workers Compensation Insurance?
California Workers Compensation Insurance requires that all employees have coverage even corporate officers and directors. The only people exempt from Workers Compensation coverage are Sole owners, except for roofers in some cases. You always want to check with your Insurance Broker to make sure that you are covered for you individual situation.
California Workers Compensation Benefits
Full medical benefits are given to employees that are able to get Workers Compensation benefits, with no time or money limitations. Unless specified the employer or the insurance company will select the initial doctor, the employee can elect to switch doctors after 30 days. Medical benefits will include doctor visits, hospital care, dental care, prescriptions, medical devices, and also travel reimbursement to and from medical visits.
Along with medical benefits the employee is able to receive wage compensation for their injury or illness as well. The amount of the wage compensation is determined by a percentage of the employees weekly average wage. Employees are able to receive up to 2/3 the amount they are normally paid during a week. If the employee is off work for less than 7 days they are not able to receive wage benefits, but if they are off work for more than 14 days they are able to go back and receive the first 7 days wages.
California Workers Compensation Insurance allows for employees to receive money for training. They can receive training for a new job if they are unable to perform the job the used to have or the employer does not have that position anymore.
What if my Company Does Not Have Adequate Workers Compensation Insurance?
If an investigator finds that your business is operating with California Workers Compensation Insurance you can be charged with a misdemeanor. This crime carries up to a $10,000 fine or imprisonment for up to one year, or possibly even both. The state could also bring on additional fines of up to $100,000 for an illegally uninsured business.
If it is found that your business is operating without California Workers Compensation Insurance it can issue a stop order on your business. A stop order means that you are not able to use employee labor until the issue is fixed. If you do not go along with the stop order you can also be fined up to $10,000, spend 60 days in jail, or both. At the time of the stop order the state of California can impose a penalty of $1,000 per employee on the payroll.
California Workers Compensation Insurance can cost you a little money in the short term, but what could it really cost you if you don't have the right coverage. Speak to a Certified Workers Compensation Specialist to make sure you have the coverage to fit you individual needs.
Do you have questions about California Workers Compensation Insurance?
To find out how your company can save time and money, speak to a Workers Compensation specialist at 1-800-253-7040.
