My Employer Doesn't Have Workers' Comp. Insurance. Now What?

In the State of California, all employers are required to carry workers’ compensation insurance or a certificate to self-insure. If they don’t, they risk serious consequences, including criminal prosecution and expensive litigation. Additionally, any employee who suffers a work-related injury or illness has the right to collect benefits for lost wages, medical bills, and the loss of future earning capacity. 

But what options do you have if you are injured or become ill at work and your employer is not legally insured? 

You Can Still Receive Benefits

If an employer fails to carry workers compensation insurance, an injured worker in California can still receive workers’ compensation benefits directly from the employer or a state fund. The injured worker can also sue the employer in civil court.

If the employer does not have the funds to pay the injured worker’s benefits, a California state agency, called the Uninsured Employers Benefit Trust Fund (UEBTF), will pay the workers’ compensation benefits. This is a special fund used to pay benefits to employees of illegally insured employers.

How to Claim Benefits With UEBTF

The claims process for the UEBTF is much more complicated than it is when an employer has proper insurance, but you can still get the benefits you’re entitled to.

After confirming that your employer does not have insurance coverage or self-insurance, you should put together three identical packets,including:

• a claim form

• an Application for Adjudication of Claim

• Special Notice of Lawsuit to notify the employer

• medical reports documenting the work injury

• medical bills related to the work injury

• proof of employment such as pay stubs or W-2 during the time of injury

• a report that employer did not have insurance

• Petition to Join Party Defendant UEBTF

One copy of the packet must be served to the employer. One must be filed with the Workers’ Compensation Appeals Board. The final copy is for the injured worker to keep.

What About a Civil Case?

If an employer does not have workers’ compensation insurance, an injured worker can also file a personal injury claim against the employer in civil court.

If an injured worker pursues both a workers’ compensation claim and a civil claim, a payment deduction system prevents the injured worker from getting paid twice for the same claim - meaning an employer can deduct any payments it makes in one court against the other.

The statute of limitations for filing a civil claim is three years from the date of the work injury.

Uninsured Employers Make Getting Benefits More Difficult

Dealing with an uninsured employer can make getting benefits extremely difficult for an injured worker. The process of dealing with the UEBTF can be time-consuming and confusing, and trying to pursue a civil claim can be intimidating.

Enlisting the help of a Certified Workers’ Compensation Specialist can take the daunting task of getting benefits off of your shoulders, while you focus on recovering from your injury or illness.

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Cole, Fisher, Cole, O’Keefe + Mahoney is Central California’s leading workers’ compensation and social security disability law firm. With over 30 years of successful experience, we are committed to securing maximum benefits for our clients in the Fresno, California area. Schedule a free consultation today.