What if My Employer Doesn’t Have Workers’ Compensation Insurance?
In California, most employers are required by law to carry workers’ compensation insurance to protect employees who suffer work-related injuries or illnesses. This coverage ensures that injured workers can receive medical treatment and wage replacement benefits without having to prove fault. But what happens if you get hurt on the job and your employer doesn’t have workers’ compensation insurance?
Unfortunately, some employers try to cut costs by failing to carry the required coverage. This leaves injured workers in a difficult position, unsure how to get the care and compensation they need. At Invictus Law, P.C., we represent workers in Orange County and the Inland Empire who find themselves in this situation. Below, our Southern California workers’ compensation lawyers discuss what you need to know about your rights and options if your employer is uninsured.
California’s Workers’ Compensation Insurance Requirements
Under California Labor Code Section 3700, all employers with at least one employee must carry workers’ compensation insurance, even if they only have part-time staff. There are very few exceptions, and failing to have coverage is not just a violation of labor laws; it’s a criminal offense.
Employers who fail to carry workers’ compensation insurance can face severe penalties, including fines, criminal charges, and even jail time. But those penalties don’t automatically help an injured worker pay their medical bills or replace lost income. That’s where the Uninsured Employers Benefits Trust Fund comes in.
How the Uninsured Employers Benefits Trust Fund (UEBTF) Works
If you are injured at work and your employer doesn’t have workers’ compensation insurance, you may be able to file a claim with California’s Uninsured Employers Benefits Trust Fund (UEBTF). This special state-administered fund provides benefits to injured employees when their employers fail to carry the required coverage.
Through the UEBTF, you can receive:
- Payment for reasonable medical treatment related to your work injury
- Temporary disability benefits if you can’t work while recovering
- Permanent disability benefits if your injury causes lasting impairment
- Death benefits for surviving dependents in fatal cases
The process is similar to a regular workers’ compensation claim, but there are extra steps involved in proving your employer is uninsured. You will likely need to provide documentation from the California Division of Workers’ Compensation (DWC) confirming the lack of coverage, and you may have to participate in legal proceedings to establish your employer’s liability.
Suing Your Employer in Civil Court
In addition to filing a claim with the UEBTF, you may have the right to file a personal injury lawsuit directly against your uninsured employer. Normally, workers’ compensation is the exclusive remedy for workplace injuries, meaning you cannot sue your employer for damages. However, if your employer failed to carry the required coverage, that legal protection is removed.
A civil lawsuit can allow you to recover damages beyond what workers’ compensation offers, such as full wage loss, pain and suffering, and other out-of-pocket costs. That said, collecting on a judgment can be challenging if your employer lacks the resources to pay. You would also need to prove the employer was negligent or to blame for the accident and fend off challenges that you caused or contributed to your injury by your own actions or negligence.
Challenges in Uninsured Employer Claims
Pursuing benefits when your employer is uninsured can be more complicated than a standard workers’ compensation claim. Some common challenges include:
- Identifying and proving employment: Your employer may try to deny that you were an employee, claiming you were an independent contractor or otherwise not covered by labor laws.
- Proving the injury is work-related: As with any claim, you’ll need strong medical evidence connecting your injury or illness to your job duties.
- Delays in processing: UEBTF claims often take longer than regular workers’ comp claims due to the extra investigative steps involved.
These obstacles are why having an experienced workers’ compensation lawyer is so important. A lawyer can help you gather evidence, file the necessary paperwork, represent you in hearings, and protect your rights throughout the process.
Protecting Yourself After an Injury with an Uninsured Employer
If you discover your employer doesn’t have workers’ compensation insurance, taking the following steps can help protect your health and your legal claim:
- Get medical treatment right away. Make sure your health and safety come first. Tell your healthcare provider that the injury occurred at work.
- Report the injury in writing. Even if your employer is uninsured, notify them as you would with a standard claim.
- Contact the California Division of Workers’ Compensation. They can verify whether your employer is insured and guide you toward filing a UEBTF claim.
- Speak to a workers’ compensation attorney. These cases are complex, and an attorney can help you pursue both a UEBTF claim and any potential civil lawsuit.
Invictus Law, P.C. Can Help
At Invictus Law, P.C., we understand how stressful it can be to suffer an injury on the job only to find out your employer is breaking the law by not carrying workers’ compensation insurance. We help injured workers in Orange County and the Inland Empire navigate the UEBTF process, hold employers accountable, and recover the benefits and compensation they deserve.
If you’ve been injured and your employer doesn’t have workers’ comp insurance, you still have options. Contact us today for a free consultation over the phone or to schedule an appointment at our offices in Orange and Ontario. We’ll explain your rights, help you take the right legal steps, and fight for the support you need to recover.
