What is the penalty percentage for failing to obtain worker's compensation coverage based on the compensation paid?

In California, if an employer fails to obtain the required workers' compensation insurance coverage, they can be subjected to penalties based on the compensation they have paid to employees over a certain period. The penalty for non-compliance is established at a percentage of the compensation paid, and this percentage is set at 10%.

This penalty serves as a deterrent to ensure that all employers comply with the legal requirements to provide workers' compensation coverage, thus protecting employees in the event of job-related injuries or illnesses. The purpose of imposing this specific percentage is to create a clear and consistent enforcement mechanism that encourages compliance, thereby promoting workplace safety and ensuring that injured workers receive the benefits they are entitled to.

Understanding the implications of not having proper coverage and the penalties associated with it is crucial for employers to manage their risks effectively. It's a reminder of the importance of adhering to the workers' compensation laws in California.