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Workers'
Compensation - If you employ an individual that is determined to be
a worker instead of an independent contractor, you are the employer and responsible
for providing workers' compensation coverage. Employers that are not in compliance
with workers' compensation coverage laws are liable for penalties two times the amount
they should have paid in premiums or $1,000, whichever is greater. The penalty for
every additional incident of noncompliance is $250 per day for each day of noncompliance
with no limit on the total fine. After a third offense, the employer is referred to
the Department of Justice to pursue a court ordered injunction. Further violations
will result in a contempt of court judgment with possible jail time.
If a subject worker is
injured while employed by someone that does not have workers' compensation insurance,
the worker may still be eligible for benefits. The claim is referred to an agent for
processing. In addition to penalties assessed for noncompliance, the employer must
reimburse all claim costs and a claims processing administration fee. There is no protection
under a corporation or limited liability company because officers, members, or partners
are separately and individually liable for the costs. Furthermore, a noncomplying employer
is subject to civil action in addition to workers' compensation benefits if the injured
worker files a civil suit. There is no exclusive remedy protection if the employer
does not have coverage at the time of injury.
Carrying required workers'
compensation insurance is vital to an employer's business. The cost of not doing so
can be very high. e for providing workers' compensation coverage. Employers that are
out of compliance with workers' compensation law are liable for penalties of two times
what they would have paid in premiums or $1,000, whichever is greater. Upon additional
occurrences of non-compliance, the penalty is $250 per day for each day out of compliance
with no maximum amount which can be assessed. After a third offence, the employer is
referred to the Department of Justice to pursue a court ordered injunction. Further
violation will result in a contempt of court judgment with possible jail time.
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