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Sections 3550-3553 of the California Labor code require that employers have workers compensation insurance, which pays benefits to s matter. Last week, California Labor Commissioner Angela Bradstreet referred two San-Francisco area construction companies to the District Attorney’s office for a failure to comply with a stop order and failure to maintain the required worker’s compensation insurance. After inspections in mid-October, the construction companies were ordered to stop working until the required insurance was obtained. Bradstreet explained the stop-work order, reminding employers that “illegal operations have a negative impact on our state’s economy and they do not provide the protection legally afforded to California Workers.” When neither of the companies, Struct-Tech Group, Inc. and Glenside Construction, did not comply with the order, the referral to the DA’s office was almost immediate.

The owners of Struct-Tech Group, Inc. and Glenside construction companies are facing court dates this month and face between $2,000 and $5,000 in penalties for the violations. While the penalties are not assessed per evaluation, Bradstreet commented that "the actions of the Labor Commissioner and District Attorney should send a strong no tolerance message to employers who seek to violate California’s worker’s compensation laws."Perhaps more importantly, the stop orders have no doubt had an impact on the day-to-day operations of the companies, demonstrating the necessity of meeting the labor code’s requirements.

If you employ even one employee, you may be required to carry your own worker’s compensation insurance. California’s Department of Industrial Relations provides information for employers to help them comply with the law. If you are interested in learning more about the workers compensation that you may be required to provide, you may want to visit them online. If you have questions or need advice regarding workers compensation at your place of work or within a company you own, you may want to speak to an attorney.

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