As stated in the Frequently Asked Questions on the website of the California Division of Workers' Compensation, California law requires all employers to have workers' compensation insurance. This is true even when hiring your own child or other family member. Heavy fines can be imposed on employers without coverage.
Workplace injuries can and do happen. If a child care worker gets hurt or contracts a disease on the job, the business owner is responsible for paying all bills related to the injury or illness. (A biting child, kitchen mishap, or stairway accident, anyone?) These costs will not be covered by the employee's own health insurance. The employee can file a civil action against the employer in addition to filing a workers' compensation claim.
In California, failing to have workers' compensation coverage is a misdemeanor criminal offense punishable by a fine of up to $10,000 or imprisonment of up to one year, or both. The state can also issue penalties well above that amount. Large penalties also apply in many other states.
For all these reasons, it is very important to have a workers' compensation insurance policy if you have one or more employees.
If you are an employer without coverage, read my article on obtaining workers' compensation insurance.
Last updated on 19 December 2011
Posted on 2009-01-03 21:31:23