When precisely is Workers Compensation Insurance Required in California?
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Operating a small business in California can be really challenging and confusing expertise because of California’s complex legal code. While there is several legal needs small business house owners will definitely want to become acquainted and compliant with, understanding the California workers compensation requirements to be a top priority. And according to the California labor code, failure to comply the state’s workers’ compensation requirements may result during a misdemeanor, fines of up to $100,000 and up to 1 year in jail. Additionally, California’s workers compensation laws are amongst the foremost strictly enforced laws in the state. And California’s Department of Industrial Relations makes it quite clear when an employer is needed to hold workers compensation insurance.
In California, any business with employee’s, is required to purchase California workers compensation insurance. Also, if you're a roofer and you have got no employee’s, you're still required to hold workers compensation. As workers compensation is needed for all employees, it’s usually not needed for owners or workers that are independent contractors. Be careful, as the line between classifying an employee as an independent contractor instead the employee is very fine and making a judgment error on this subject can be very expensive.
The definition of an employee can be found under California Labor Code3351, but you need to consult with an attorney to ensure any independent contractors that you may be using can be usually legally classified in this manner. Improper worker classification is most prolific in the construction industry as a result of relatively higher prices for workers compensation insurance as well as the prevailing use of temporary and contract labor. Also, a business selection of legal structure can even have an impact on workers compensation requirements. Typically, it's incorrectly assumed that company officers or directors of an organization aren't needed to be covered by workers compensation insurance. This is the only truth if the company officers/directors totally own the business.
The process of determining the workers compensation requirements for several businesses is comparatively straight forward, however becomes progressively complex when contract workers get involved. In any event, if you're utilizing labor in your business you ought to ask your insurance adviser to discuss any potential California workers compensation requirements. If you're not operating with an insurance adviser or would like to have a second opinion, view http://www.workerscompensation-california.com/WC_Glossary.html for your California workers compensation requirements.
In California, any business with employee’s, is required to purchase California workers compensation insurance. Also, if you're a roofer and you have got no employee’s, you're still required to hold workers compensation. As workers compensation is needed for all employees, it’s usually not needed for owners or workers that are independent contractors. Be careful, as the line between classifying an employee as an independent contractor instead the employee is very fine and making a judgment error on this subject can be very expensive.
The definition of an employee can be found under California Labor Code3351, but you need to consult with an attorney to ensure any independent contractors that you may be using can be usually legally classified in this manner. Improper worker classification is most prolific in the construction industry as a result of relatively higher prices for workers compensation insurance as well as the prevailing use of temporary and contract labor. Also, a business selection of legal structure can even have an impact on workers compensation requirements. Typically, it's incorrectly assumed that company officers or directors of an organization aren't needed to be covered by workers compensation insurance. This is the only truth if the company officers/directors totally own the business.
The process of determining the workers compensation requirements for several businesses is comparatively straight forward, however becomes progressively complex when contract workers get involved. In any event, if you're utilizing labor in your business you ought to ask your insurance adviser to discuss any potential California workers compensation requirements. If you're not operating with an insurance adviser or would like to have a second opinion, view http://www.workerscompensation-california.com/WC_Glossary.html for your California workers compensation requirements.