Failure to Carry WC Coverage

An uninsured employer faces grave civil and criminal risks for failing to maintain continuous workers’ compensation coverage. Not only can the employee sue the employer in tort for work-related injuries or diseases, in which suit the employee may recover amounts in excess of those allowed under workers’ compensation. but the employer and those individuals responsible to act on its behalf may each be criminally charged for each day’s failure to maintain continuous workers’ compensation coverage.

Misdemeanor convictions can result in the potential imposition of a $ 2,500 fine and up to one year in imprisonment for each day the employer is in violation of the requirement to maintain workers’ compensation coverage. Felony convictions can result in the potential imposition of a $ 15,000 fine and up to seven years imprisonment for each day the employer intentionally violated this requirement. Further, the employer and those individuals responsible to act on its behalf may be required to pay all benefits awarded by a workers’ compensation judge.

The Bureau of Workers’ Compensation investigates employer compliance with workers’ compensation laws and may initiate the filing of charges against employers and individuals responsible to act on its behalf if workers’ compensation coverage is not continuously maintained.

Further, any individual, including competitors, may seek county district attorney approval to file a private criminal complaint against an employer who fails to maintain workers’ compensation coverage when required to do so.