Purchasing health, life and/or disability insurance may be a viable option for the compensation of employees of a sole proprietor. Contact a licensed commercial brokerage agent or property and casualty insurance brokerage agent for more information and advice. Q: Where can I get the application forms that I need to give to my employees if they get sick or injured because of the job? A: All California employers must provide employee compensation benefits to their employees in accordance with California Labor Code Section 3700. If a company employs one or more employees, it must meet the legal requirements. They must also provide newly hired employees with a workers` compensation brochure explaining their rights and obligations. This guide provides an overview of California`s workers` compensation system. It is designed to help workers who have suffered accidents at work understand their basic legal rights, what steps to take to apply for workers` compensation benefits and where to seek further information and assistance if needed. Employers can find DWC fact sheets and guides for injured workers useful and can access them at www.dwc.ca.gov. A commercial broker can help a company take out workers` compensation insurance with a licensed insurance company and can provide information about sovereign wealth fund and self-insurance. Information about insurance companies licensed to sell workers` compensation insurance and an online comparison of rates from the top 50 workers` compensation insurers is available on the California Department of Insurance (CDI) website under www.insurance.ca.gov.
California Labor Code Section 3351 defines who is an employee and therefore may be covered by a workers` compensation policy. Whether a business is a sole proprietorship, partnership or corporation, it is beneficial to establish an employment relationship with a reliable and knowledgeable broker-agent who can explain eligibility issues and present options based on a company`s organizational model. A: Workers` compensation insurance premium rates are not regulated by the state. While the Workers` Compensation Insurance Rating Bureau – the licensed statistical office for the state`s insurance commissioner – issues recommended rates and airlines must submit their rates to the California Department of Insurance, rates can vary from carrier to carrier. Like any good consumer, you should look for a carrier that best suits your needs. Cost is a consideration, but there are other factors to consider: services, easy access to adjusters, their familiarity with your industry, the doctors in their network, etc. If you have a broker or agent, he or she should be able to advise you expertly. A: Yes, you can be fined and more. If the Division of Labor Standards Enforcement determines that an employer is working without workers` compensation coverage, a stop order is issued. This order prohibits the use of employee labor until coverage is reached, and non-compliance is an offense punishable by imprisonment in the county jail for up to 60 days or a fine of up to $10,000, or both. The Labour Standards Enforcement Division will also impose a penalty of (1) twice the amount that the employer would have paid during the period during which the employer was not insured in terms of defined compensation premiums in accordance with subdivision (c), or (2) the sum of one thousand five hundred dollars ($1,500) per employee employed during the period, in which the employer was not insured.
[Article 3722(b) of the Labour Code]. A: Yes, workers` compensation fraud is a crime and can take many forms: a worker who says they were injured on the job when their injury actually occurred while skiing; an employer who says its employees work in office jobs if they are really construction workers; A medical service provider who charges six treatments for an injured worker if they have provided only two, etc. These are just a few examples of scams in the workers` pay system. Fraud is a serious problem and must be reported to the California Department of Insurance (CDI) for investigation. The CDI has more information about fraud on its website. CDI works closely with other agencies to investigate possible cases of fraud and also works with local district prosecutors to prosecute those caught in the act of violating the law. This edition of the guide describes the workers` compensation system as of April 2016. Workers using the guide should also check out the updates posted on the Department of State`s Workplace Injuries (DWC) website. Officers and directors of businesses must be included in workers` compensation coverage, unless the business is wholly owned by the directors and officers. If the directors and officers are full owners of the business, they may choose to be excluded from workers` compensation benefits.
Full-owned companies may want to discuss the possibility of involving or excluding their officers and directors with a licensed commercial brokerage agent. A: Employers must take out workers` compensation insurance either with a licensed insurance company or through the State Compensation Insurance Fund (State Fund). Employers may also have the option of insuring against employees` remuneration. A: Your Employee Claims Administrator (usually your insurance company or a third-party administrator if you are self-insured and have one) will provide you with the claim form in the quantities you need. You can also download it from the form page of the DWC website. Q: My employee has work restrictions. What does that mean? A: You must report this notice to your employees` Comp Claims Administrator. Tell them all the facts you know, any witnesses you might know, and the people they should talk to. Follow each phone or oral report with a letter. Q: Can my injured employee work while recovering? A: Self-insurance requires state approval, a net worth of at least $5 million, a net income of $500,000 per year, and the deposit of a security deposit.
While in the past only very large companies were able to insure themselves due to legal requirements, in recent years, group self-insurance, in which several small employers in the same homogeneous industry bundle the compensation obligations of their employees, has gained popularity as an alternative to traditional coverage. Contact your broker or the state office for self-insurance plans for information about self-insurance. Q: My injured employee is ready to return to work. What kind of work can I offer him? The sovereign wealth fund is a state-run institution that exists to provide workers` compensation on a non-profit basis. The sovereign wealth fund competes with private workers` compensation insurance companies for businesses and also acts as an insurer of last resort when private companies are unwilling to offer workers` compensation insurance. Sometimes a business owner (sole proprietor) wants to purchase workers` compensation insurance to cover themselves. The involvement of a sole proprietor must be clearly stated in the workers` compensation policy or added to the policy as a coverage note. Since workers` compensation insurance is a type of liability insurance in which the employer assumes full responsibility for all workplace accidents, an employee compensation policy may not be the best choice for a sole proprietor. Q: Isn`t employee compensation fraud a crime? Who is investigating these cases? If you offer your employee a modified or alternative job, they may only have 30 days to accept the offer. If your employee does not respond within 30 days, you can withdraw the offer. A self-insured employer has the option to manage its own employees` claims or enter into a contract with a third-party administrator (APT) to provide these services.
These enterprises serve the specific groups of workers covered by the relevant laws and regulations by reducing the financial burden of accidents at work. People who are injured on the job while employed by private companies or state and local government agencies should contact their state workers` compensation agency….