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Penalties That Arise for Not Having Workers’ Compensation

Most businesses across the United States are required to have some type of worker's compensation insurance. This is for your protection as well as that of your employees. Worker’s compensation insurance ensures that you will be able to cover the medical expenses if a work-related accident occurs.

Fines and Penalties

Almost every state imposes a penalty or fine if a business does not carry the proper amount of worker’s compensation insurance. In California, you can be fined between $10,000 and $100,000 if you do not have the worker’s compensation insurance. Some states, like Pennsylvania and New Jersey, have laws to incarcerate employer’s for up to 7 years if they do not have the required worker’s compensation insurance.

Your Employees Have the Right to Sue

If worker’s compensation insurance is not in effect when a work-related accident occurs, your employees have the right to sue you for damages. This can include their medical expenses, lost wages from being off of work, and in some cases, for their pain and suffering.

Is Your Business Exempt?

If you own a business and don’t have employees, you may not be required to have workers’ compensation insurance. You may also be exempt if you haven’t reached the minimum number of employees for your state.

A Gaylord & Nantais, our attorneys can help you find out whether or not your business is exempt from having worker’s compensation or if you have enough to meet the needs of your employees. Don’t get caught without it! Call and schedule an appointment today!


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Thomas M. Nantais

Thomas M. Nantais

Thomas M. Nantais is the Co- owner of Gaylord & Nantais, a legal firm specializing in workers’ compensation, in the state of California. This firm deals in getting hearing loss compensation and work related injuries compensation for those who have worked in the state of California. With his sincere efforts, Thomas is committed to meet the highest standards of the legal industry, and aims to provide the clients with an honest and aggressive representation.

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