Workers' Compensation is a critical part of doing business in the United States and most especially in the State of California. If you are a contractor, licensed or unlicensed and found to be without workers' compensation coverage (per California regulations) you could get a Stop Order from the registrar of contractors.
If issued a Stop Order you have to stop all work immediately and pay your employees for lost wages, up to 10 days, until you get the required workers' compensation insurance.
If you do not follow the stop order it is considered a misdeamor with up to 60 days in county jail or $10,000 fine.
Remember: You must post the "notice to employees" poster in a conspicuous place at the work site. This poster provides employees with information on your workers' compensation coverage and where to get medical care for work injuries. Specific requirements are contained in sections 3550-3553 of the California Labor Code. Failure to post this notice is a misdemeanor that can result in a civil penalty of up to $7,000 per violation. Contact your insurer to get the posting notice and the required information that must be included on it. You may also download a poster from the forms page of the DWC Web site.
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