If the Director of Industrial Relations finds a private self-insured employer has failed to pay benefits, what can they do?

The correct answer, which involves utilizing the self-insured's security deposit for compensation, is based on the regulatory framework established to protect injured workers and ensure that self-insured employers fulfill their responsibilities. In California, self-insured employers are required to maintain a security deposit as a form of financial assurance that they can meet their obligations to pay for workers' compensation benefits.

When the Director of Industrial Relations identifies a failure to pay benefits, the use of the security deposit acts as a safeguard for employees affected by this non-compliance. It allows for immediate compensation to injured workers who would otherwise be left without necessary support. This mechanism ensures that workers receive their entitled benefits while also holding the employer accountable for their obligations.

The other options do not directly address the immediate need to compensate injured workers in the event of non-payment. While fines, terminating the self-insurance program, or reassessing eligibility may be actions taken in response to non-compliance, they do not provide direct support to injured workers in the short term. Using the security deposit is a more direct and effective solution to remedy the situation and ensure that workers' rights are protected.