“The California Department of Industrial Relations (DIR) launched the Insurance Coverage Program, an enforcement program designed to identify and target employers who fail to carry workers' compensation insurance.”
|
|
|
|
|
 |
LABOR ENFORCEMENT UPDATE
DIR Launches Enforcement Program
to Target Employers Who Fail to Carry
Workers' Compensation Insurance
By Christopher W. Olmsted
On May 15, 2008 the California Department of Industrial Relations (DIR) launched the Insurance Coverage Program, an enforcement program designed to identify and target employers who fail to carry workers' compensation insurance.
The DIR press release quotes DIR Director John C. Duncan: "Through this new enforcement program we will be able to systematically identify unlawfully uninsured employers to prioritize as enforcement targets," said DIR Director John C. Duncan. "By partnering with other agencies we are leveraging our resources to seek out illegally operating employers and to level the playing field for those who follow the laws."
The DIR did not specify how it would decide which employers to target. However, it would be reasonable to assume that the targets will include companies that improperly classify workers as independent contractors, and not just companies that fail to procure workers' compensation insurance coverage.
Often, misclassification cases are identified by the EDD, when a supposedly independent contractor attempts to apply for unemployment benefits. With inter-agency cooperation on the rise, such instances could be referred to the DIR for further enforcement action.
The DIR reminds businesses that under California law, all employers are required to purchase workers' compensation insurance or file a certificate to self-insure. The DIR's Division of Labor Standards Enforcement (Labor Commissioner's Office) is charged with identifying and targeting violators.
The enforcement program is well funded. Senate Bill 869, signed into law by Governor Schwarzenegger in 2007, authorizes DIR to use funds from the Workers' Compensation Administration Revolving Fund for the enforcement of the Insurance Coverage Program. Any penalties collected during the enforcement process will be credited back to the special fund. Businesses should therefore expect to see more enforcement actions very soon.
More Legal Update articles.
Download entire June Legal Update in PDF format.
This article is intended as a brief overview of the law and are not intended to substitute as legal advice. Any questions or concerns regarding any statute or case law should be addressed to a licensed attorney. Copyright © 2008 by Barker Olmsted & Barnier, APLC. San Diego, California. All rights reserved.
|
Copyright © 2007 Barker Olmsted & Barnier.
All Rights Reserved. Powered by Infinitude.net Disclaimer.
Privacy Notice. 