Most businesses in America carry workers' comp as it is required in every state except Texas, according to Embroker, which noted there are exceptions for sole proprietors and the self-employed.
Depending on where the business is located, the penalty for not carrying workers' comp coverage can be severe. Embroker reported that noncompliance is a criminal offense in California, where the penalty often costs twice as much as the business would have paid in premiums or $1,500 per employee. Despite the stiff penalties, California employers continue trying to skirt the state's workers' comp requirements.
Pennsylvania and New Jersey also consider noncompliance a criminal offense. Illinois employers that willingly fail to secure coverage can face a felony charge, while New York and Virginia issue fines as high as $50,000 for noncompliance.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
