It’s important to be aware of the requirements for California workers comp insurance. This is especially true if you manage an in-state business within a risk-prone industry, or maybe have had to lay people in the past off due to injuries. You and your employees need to know your associated rights and you certainly don’t want to be leaving money on the table, or getting into a lawsuit. If you’re unfamiliar with the basics of California worker’s comp insurance, read on to find out the things you need to know.
Yes, You Have to Have California Workers Comp Insurance
If you run a business in California, it’s a must. Worker’s comp functions as a type of liability insurance, and an employer is responsible for all of their employees and keeping them protected. If you’re looking to find out about the best rates/plans for California workers comp insurance, you should visit the Worker’s Compensation Insurance Rating Bureau. From there, you can get a feel for your various options, including self insurance plans. A failure to purchase and maintain California workers comp insurance is a criminal offense punishable by hefty fines, jail time, or both. It’s better to skip all that and get the insurance. Check in with your local DMV Division of Worker’s Compensation unit for more information.
How Much Does California Workers Comp Insurance Cost?
The cost of worker’s comp insurance varies based on a number of factors, including past accident history, the industry of your business, payroll, and whether or not you qualify for special programs or discounts. If you use a specific certified healthcare organization, you may be entitled to certain discounts as well.
Where Employees Fit in with Workers Comp Insurance
Because Workers’ comp insurance is termed as a cost of business, you may not pass on this cost to employees in any way. Also, you are responsible for informing your workers of their rights by posting a notice in a convenient, clearly visible location. If a worker should become injured on the job, it is your responsibility to provide the claim forms to the employee, and report the incident to all relevant parties (e.g. if the injury is the result of a crime, it must be reported to police).
Medical Leave and Returning to Work
Depending on the nature of the injury, as well as the work the employee performs, a medical professional may or may not authorize the employee to return to work. This authorization may come immediately, or it may be delayed until the employee recovers enough to perform their job. The medical professional may prescribe certain limitations on what the employee can and cannot do; these must be followed to the letter. Typically, this entire process will be carried out through the Medical Provider Network (MPN), but an employee may substitute their own medical practitioner if they so choose.
While there is a lot to know about California workers comp insurance, the information is pretty straightforward. It’s beneficial(as well as mandatory) to have for employees and employers alike. It creates happy, protected employees and protects businesses from lawsuits, settlements, and legal fees.