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Tina, Lawyer
Category: Employment Law
Satisfied Customers: 33167
Experience:  JD, BBA, recognized by ABA for excellence.
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What are the penalties a business without workers comp

Customer Question

What are the penalties for operating a business without workers comp insurance and or under reporting the wages in the state of California? Also, how aggressive is the audit process?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Tina replied 1 year ago.

Hello and welcome,

Unfortunately I don't have good news for you. The state does aggressively pursue enforcement of worker's comp laws, which are punishable under the penal code. That means the owners could be criminally prosecuted and jailed, along with a fine against the company of $10,000 plus $1,000 for each employee it failed to cover with worker's comp insurance.

If you do get a notice from the state, it would be best to retain a local attorney to defend you and your company in this serious matter.

Here is a link which provides information on this issue:

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