Workman's Comp Law in California
California workers' compensation law -- the Boynton Act -- was enacted in 1913 and coverage became mandatory in 1917. Workers' compensation protects employees unable to work due to job-related illnesses or injuries. Prior to the law, employees often sued employers to obtain needed compensation. California's workers' compensation provides employees injured at work with immediate financial and medical benefits.
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Statutes Requiring Insurance
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California Labor Code Section 3700 requires employers to purchase workers' compensation insurance, even if there is only one permanent or part-time employee. Employers headquartered outside the state must carry workers' compensation on California-based workers. Employers can be self-insured, but must submit proof of assets adequate to provide coverage as specified in the labor code. Employers who cannot find a carrier to insure their business can purchase coverage through California's State Compensation Insurance Fund.
Penalties for Noncompliance
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Section 3700.5 of California's Labor Code created penalties for employers who fail to provide workers' compensation coverage. A first offense carries fines up to twice the amount of the premium that would have been needed to obtain coverage and up to one year of jail time. A second offense imposes fines up to triple the potential premium, with a minimum fine of $50,000. The employer would be liable for payment of whatever benefits the employee needs for a work-related injury or illness.
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Employee Notification of Rights
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California's Labor Code Section 3550 requires employers to prominently post a notice for employees detailing their workers' compensation rights. The notice must include information such as covered illnesses and injuries, right to emergency medical treatment, types of cash benefits -- temporary versus permanent disability -- and how to report work-related injuries and illnesses. Under Section 3551 of the Labor Code, employers must provide each new employee written copies of the same information in English or Spanish.
Required Medical Treatment
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Section 4600 of the Labor Code mandates workers' compensation provide employees any necessary medical care for job-related injuries. The insurer must pay up to $10,000 for treatment while its claims department reviews the case. The employee has no costs in connection with treatment. Under Section 4053, the employee must cooperate with reasonable requests by the insurer for examinations by medical-care providers or else risk suspension of benefits. California's labor code specifies that medical procedures must conform to recommendations of the American College of Occupational and Environmental Medicine.
Temporary and Permanent Benefits
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Temporary disability payments replace lost wages up to 104 weeks. The insurance carrier has 90 days to make a decision on the merits of the claim or approval is automatic. The biweekly payments are usually two-thirds of the employee's regular gross salary. If the doctor states the employee has a permanent injury, she may receive additional permanent benefits based on the percentage of disability and her usual wages. The total payable must be agreed upon with the employer and paid biweekly or as a lump sum.
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References
- San Francisco Medical Association: History of Workers' Compensation in California
- California Division of Workers' Compensation: Fact Sheet for Permanent Disability
- California Division of Industrial Relations: Workers' Compensation FAQ
- California Legal Info: Labor Code and Workplace Posting
- California Legal Info: Labor Code and Penalties for Non-Compliance
- California Division of Workers' Compensation: Fact Sheet for Temporary Benefits
Resources
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