Legal Question in Workers Comp in California
Employer has no W. Comp. Insurance
I have a friend who was injured on the job. It turns out the employer (in CA) did NOT have W. Comp. insurance.
If a civil claim (Labor Code 3706) is brought against the employer, who will pay the settlement/judgment?
The employer (from its assets)? Would a general liability policy or other insurance policy maintained by the employer cover it? Thank you for your help.
2 Answers from Attorneys
Re: Employer has no W. Comp. Insurance
There is a state fund called the Uninsured Employers Fund (UEF) that pays workers comp awards against uninsured employers (and then goes after the uninsured employers for repayment). You would need to find a workers' comp attorney who has specific experience handling UEF cases (they are different and harder than regular work comp cases). Ask lots of questions such as how many UEF cases the attorney has handled to conclusion. If the workers' comp attorney has never handled a UEF case before, or you do not like the answers you get, do not hire him or her. You would also have the right to file a Section 3706 lawsuit, but where the money would come from in the end is not clear. The employers' general liability insurance would not pay.
Re: Employer has no W. Comp. Insurance
Due to the complexity of a wompensation case against an uninsured employer, I suggest that you seek a Certified Sepcialist to represent your interests as the Unemployed Employer Fund will need to be brought in as a party.
UEF pays benefits then seeks civil relief.
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