Uninsured Employer defense attorney in California shaking hands with a client

Uninsured Employer Defense Attorney

Any person or entity who has been named as the “employer” on a case that has been filed at the Workers’ Compensation Appeals Board is in urgent need of legal representation.

Representation should be by an attorney that specializes not only in workers compensation law but that is well versed with the special issues that exists when it appears there is no insurance to cover the alleged claim.

With an aggressive plan of action/attack, we can minimize or eliminate the costs of such a claim and associated Penalties and Fines.

We specialize in finding creative solutions in the face of what may appear to be impossible odds. Our firm has handled hundreds of cases that involve the Uninsured Employers Benefit Trust Fund (UEBTF) throughout the State of California.


California Workers’ Compensation laws require that all employers of one or more non-family employees have workers’ compensation insurance. This ensures that if an employee is injured, disabled, or killed in the workplace, compensatory benefits are available to the employee or their survivors.

Workers can become Employees by statute, even if you believe you have taken necessary steps to avoid liability. For example, a person can be found to be your employee, even if the following facts exist: You pay persons and report to the Internal Revenue Service via Form 1099 (not Form W-2); they are an undocumented worker; they were employed by a licensed/unlicensed contractor, you hired. See examples below:

  • Landscape/Gardener
  • Handyman
  • Painter
  • Electrician
  • Laborer

For instance, if a homeowner has a Homeowner’s Liability Policy, a mandatory workers’ compensation addendum often covers domestic employees injured while working on the premises if it is your home. However, if you operate a business out of your home, there is a good chance that the Homeowner’s Policy will not cover employees of the business. Also, if the home is a rental, that business use often precludes workers’ compensation coverage. A Landlord can easily find himself uninsured if an unlicensed or uninsured paint/landscape contractor falls while cleaning up the property.

Hiring a Contractor that does not possess both a valid Contractor’s License and a Workers’ Compensation policy for their employees exposes the Home or Business owner to great financial risk.

Paying an Unlicensed and Uninsured Contractor can turn them into Employees for purposes of Workers’ Compensation, even if this was not your intent. This can result in liability for injuries occurring during the job to either the contractor or their employees.


Worker’s compensation insurance is not the same as liability insurance!

Liability Insurance provides coverage for an events of a non-employee injuries on the premises. These policies only cover non-work-related conditions. These policies generally cover personal injury/property damages, medical bills and pain and suffering.

Workers Compensation Insurance provides coverage for employees which include temporary disability (wage replacement if an employee is unable to work, usually for 2 years), medical treatment (to cure or relieve the affects of the work injury), impairment (compensation for permanent disability that has caused loss of future income in the labor market), supplemental job displacement voucher (to provide for vocational rehabilitation when an employee is unbale to perform their usual and customary job duties) and in some cases, death benefits awarded (these are paid to dependents of the employee).

If an employer does not have workers compensation insurance coverage, as required by law, they are classified as an “Uninsured Employer.”


The Uninsured Employers Benefit Trust Fund (UEBTF) is an entity created by the California Labor Code that provides benefits to injured workers who worked for Uninsured Employers. Through this entity, the State of California must step in and pay the benefits due if the Employer does not. Payouts come from the Uninsured Employers Benefits Trust Fund, for benefits awarded by the Workers’ Compensation Appeals Board to employees.


When the State pays the claims for Uninsured Employers, the penalties for noncompliance are costly. Many employers do not understand the very serious civil and, in some cases, criminal consequences of being uninsured.

Penalties and Fines for uninsured employers may include any of the following:

  1. Prosecution for a misdemeanor punishable by imprisonment for up to one year, or by a fine of up to $10,000, or by both fine and imprisonment. See Labor Code §3700.
  2. Civil Negligence lawsuit, with a presumption of employer negligence. See Labor Code §3708.
  3. Administrative order or court injunction stopping business operation. See Labor Code §3710.1.
  4. A penalty of $2,000 per Employee (at time of alleged injury) for non-compensable injury, or $10,000 per employee for compensable injury, up to $100,000 maximum. See Labor Code §3722(d).
  5. Liability for the injured workers’ attorney fee. See Labor Code §4555.
  6. Assessment of 200% (Double) the Workers’ Compensation Premium for the period of Non-Insurance (up to maximum of 3 years). See Labor Code §3722(c).
  7. A lien may be imposed upon your property without further hearing and before the issuance of an award. See Labor Code §3720.
  8. If the Appeals Board makes an award against you, your house or other dwelling or other property may be taken to satisfy that award in a non-judicial sale, with no exemptions from execution. See Labor Code §3720.

Our experienced attorneys can help you navigate these Uninsured Employer case issues.

While we cannot guarantee results, we are highly successful in eliminating the penalties and fines outlined above.

Ignoring legal notices, subpoenas and hearing dates will not help you and will make things worse.
You need to act in order to protect your rights and interests.

Once we commence representation, we will handle ALL aspects of this process for you.
This will allow you to get back to living your lives in peace!

Click on the button above to schedule a consultation or contact our office (800) 997-1390.