I just found out my employer does not have workers’ compensation insurance… does that mean I won’t get benefits?
So, you just found out that your employer doesn’t have workers’ compensation insurance? That’s certainly bad news but it’s not the end of the world. California law requires employers to carry workers’ compensation insurance. That means that all employers must either purchase workers’ compensation insurance or operate as permissibly self-insured or legally uninsured. The majority of employers satisfy this requirement by purchasing workers’ compensation insurance. If you are hurt at work and your employer does not have workers’ compensation insurance you’re not out of luck but you are going to need some patience. It would be much better if you directly get answers to this question and more from the Law Office of Joseph Pluta in a free consultation that you can schedule right away! Read on to get a better insight into what to do when your employer doesn’t have workers’ compensation insurance.

Understanding Your Options with No Workers Comp Insurance

You said that I’d need some patience, what gives?

The State of California operates an agency called the Uninsured Employers’ Benefit Trust Fund (UEF or UEBTF for short) which acts as if it was the insurance company for your uninsured employer. The reason you’re going to need patience is like all things run by the state, you have to expect delays. There is a whole set of extra hoops that your attorney must navigate before he can successfully join the UEF and the truth is, a lot of attorneys won’t take uninsured cases because they’re extra work and extra headaches.

What is the UEBTF Process And What to Expect?

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The path through UEBTF isn’t as straightforward as regular workers’ compensation claims, but understanding the process can help you prepare:

Initial Filing

First, you’ll need to file a workers’ compensation claim form (DWC-1) with your employer, even if they’re uninsured. This establishes an official record of your injury and starts the clock on your claim.

Additional Documentation

You’ll need to prove both your employment relationship and that your injury occurred during work. Keep detailed records of:

  • Pay stubs or wage statements
  • Employment contracts or agreement
  • Witness statements about your injury
  • Medical records documenting your work-related injury
  • Any communication with your employer about the injury

Legal Representation

An experienced workers’ compensation attorney becomes particularly valuable in these cases. They can help you:

  • Navigate the complex UEBTF application process
  • Gather the necessary documentation
  • Meet critical deadlines
  • Protect your rights throughout the process

Can I Sue My Employer for Not Having Workers’ Compensation?

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When you discover there’s no workers compensation insurance at your workplace, you actually have two main options for seeking compensation:

  • Pursuing a claim against the UEBTF
  • Pursuing a civil lawsuit against your employer

Unlike standard workers’ compensation cases, when your employer lacks required insurance, you can take legal action in civil court. This might allow you to recover:

  • Full lost wages instead of partial disability payments
  • Compensation for pain and suffering
  • Punitive damages in cases of serious negligence
  • Complete medical expense reimbursement

Understanding the Penalty for Employers That Don’t Have Workers’ Compensation Insurance in California

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California’s worker protection laws are clear: operating without workers’ compensation insurance carries severe penalties for employers. These penalties for not having workers’ compensation insurance in California include:

  • Criminal charges (misdemeanor or felony)
  • Fines up to $100,000
  • Stop-work orders that shut down business operations
  • State-mandated audits
  • Personal liability for worker benefits
  • Additional civil penalties
  • Full responsibility for legal costs

Does My Employer Have to Hold My Job While on Workers’ Comp in California?

First, it’s important to understand that California doesn’t have a blanket law requiring employers to hold your position indefinitely while you’re on workers’ compensation. However, you do have significant protections under various laws that effectively protect your job in many situations.

Does My Employer Have to Hold My Job While on Workers' Comp in California?

Protection Based on Company Size

Small Companies (5-49 employees):

  • Protected under CFRA for up to 12 weeks
  • Must maintain your health benefits during this time
  • Entitled to return to the same or comparable position
  • Protection from retaliation for filing a claim

Larger Companies (50+ employees):

  • All protections available to smaller companies
  • Additional federal FMLA protections
  • More likely to have alternative positions available
  • Often have established return-to-work programs

Time Frames for Job Protection

First 12 Weeks

The strongest protection period is typically the first 12 weeks after your injury, during which several laws provide overlapping protection:
1. CFRA Protection:

  • Guarantees your right to return to your same or comparable position
  • Maintains your health benefits
  • Protects your seniority and benefits accrual

2. FMLA Coverage (if applicable):

  • Runs concurrently with CFRA
  • Provides federal protection alongside state rights
  • Ensures continuation of health benefits

Beyond 12 Weeks

After the initial 12-week period, your rights continue under different laws:
1. ADA Protection:

  • Requires employers to provide reasonable accommodations
  • Protects against disability discrimination
  • May include additional leave as accommodation

FEHA Rights:

  • California’s version of ADA with broader protections
  • Covers more conditions than federal law
  • Requires interactive process for accommodations

Your job protection rights remain intact even if your employer lacks workers’ compensation insurance. The key is understanding and actively protecting these rights throughout your recovery process.

What Happens After Filing a UEF Claim?

Once you get the UEF successfully joined, your case often proceeds like any other case. That is, you complete a medical-legal evaluation and once your condition stabilizes, your attorney can attempt to settle your case with the UEF based on the medical evidence.

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When you’re hurt on a job with no workers comp coverage, the UEF process includes:

  • Verification of your employer’s uninsured status
  • Proof of employment relationship
  • Documentation of work-related injury
  • Medical evaluations
  • Benefit determination

Getting Professional Help is Essential

If you are injured at work and your employer tells you that they don’t have insurance, it’s a good idea to consult with an experienced workers’ compensation attorney as your case is going to be more complicated than the average case. Your attorney may also be able to offer you some advice to help you weather the additional waiting period while the UEF is successfully joined. The important thing to take away is that while you are usually in for a longer ride, you still have rights and you may be entitled to benefits.

Steps to Take When You Have No Workers Compensation Insurance Coverage

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It can be overwhelming to find out your employer does not have workers’ compensation insurance after you have sustained an injury on the job. With loss of income, medical bills and other bills may pile up, leaving you feeling desperate. However there are proactive steps that you can take to get through this difficult period and secure the support and compensation you deserve. Here’s a list of steps you should take if you find yourself in such a position:

1. Document Your Injury

  • Take photos of visible injuries
  • Write down accident details
  • Keep copies of medical records
  • Save all employer communications

2. Report Your Injury: Even with no workers’ comp insurance, formally report your injury in writing to create a paper trail.
3. Seek Medical Care: Don’t delay treatment – your health comes first, and medical documentation strengthens your claim.
4. Contact an Attorney: Look for one experienced in handling UEF cases. contact us image

Frequently Asked Questions

I’ve been paying my own medical bills for a work injury. Can I get reimbursed through the UEF?

Yes, you may be compensated for medical expenses incurred out of pocket. Make sure to keep all receipts, bills, and documentation of your medical treatment. When your claim is settled, your attorney will seek reimbursement for your self-procured medical expenses. However, future medical care will be subject to the rules and restrictions which governing treatment in the California workers’ compensation system. Your attorney will help facilitate proper medical care via the workers’ compensation system.

My employer says I’m an independent contractor, not an employee. Does this mean I can’t get benefits?

Do not just accept what your employer says. California law uses certain standards to determine who is and who is not an independent contractor. As a result, many workers are misclassified as contract workers, whereas, in fact, they should be considered employees. In some instances, the control an employer has over your work, the tools and equipment provided by the employer, and the manner in which you are compensated are strong hints that you were mistakenly identified as an independent contractor. Either way, you could well be entitled to benefits. An experienced attorney knows how to evaluate your true employment status

How long does it typically take to get benefits through the UEF?

Usually, it takes longer for the UEF cases to be tried compared to regular workers’ compensation cases. While one can get benefits on average after 3-6 months for a regular workers’ comp case, UEF cases take around 6-12 months or even much longer. This is due to the additional verification and paperwork involved as long as your doctor certifies you for benefits. (I wanted to add that to the end of the sentence I highlighted.

What if my employer threatens to report me to immigration authorities if I file a claim?

Such threats are illegal and may legally expose your employer to additional penalties. Your immigration status does not affect your right to receive workers’ compensation benefits in the state of California. As per UEF’s rules, claims are entitled to benefits and do not require immigration status. You cannot be reported or retaliated for filing an honest complaint. Keep records of such threats if made by your employer; then call your counsel or attorney immediately.

Can I still get medical treatment while waiting for my UEF claim to be approved?

Yes, you have several options for medical care while your claim is pending:

  • Use your personal health insurance (you can seek reimbursement later)
  • Apply for state disability benefits
  • Work with medical providers who understand workers’ compensation and are willing to wait for payment
  • Seek care through community health centers or public health programs
  • Your attorney can often help arrange treatment with medical providers who understand the UEF system.

What happens if my employer goes out of business during my claim?

The UEF was set up for situations like this. Even though your employer closes or goes bankrupt or disappears, you can still pursue your claim through UEF. The fund is designed to give injured workers benefits, regardless of the employer’s status or ability to pay. If possible, obtain proof of employment before the plant closes.

I’ve been offered a settlement through the UEF. How do I know if it’s fair?

Evaluating a settlement offer requires considering multiple factors:

  • The extent of your injuries
  • Your future medical needs
  • Your ability to return to work
  • Your pre-injury wages
  • The permanent effects of your injury

Never accept a settlement without having an experienced attorney review it.

What if I have multiple jobs and get hurt at the uninsured one?

Your benefits calculation should include wages from all your jobs at the time of injury, not just the one where you were hurt. Make sure to document your earnings from all employment sources. The UEF can consider your total income when calculating disability benefits, which could result in higher benefit payments.

How can I pay my bills while waiting for benefits to start?

While waiting for UEF benefits, consider these temporary support options:

  • State Disability Insurance (SDI)
  • Unemployment benefits (if you’ve lost your job)
  • Short-term disability insurance if you have it
  • Social Security Disability Insurance for long-term cases

Your attorney can help you understand which programs you might qualify for and how they interact with your UEF claim.

What if my employer tries to fire me or cut my hours after I file a claim?

This would be illegal retaliation. California law provides strong protections against employer retaliation for filing a workers’ compensation claim. If you experience any negative job actions after filing your claim, document everything carefully and inform your attorney immediately. You might have additional legal claims against your employer beyond your workers’ compensation case.

Do I need to hire an attorney who specializes in UEF cases?

While any licensed attorney can technically handle your case, working with one who has specific UEF experience is highly recommended. These cases involve unique procedures, deadlines, and documentation requirements that differ from standard workers’ compensation claims. An experienced UEF attorney will know how to navigate these complexities efficiently and maximize your chances of success.

Why Choose Professional Legal Representation?

When an uninsured employer case has arisen, having experienced legal representation is crucial. The Law Office of Joseph Pluta recognizes that UEF cases are complicated and can:

  • Handle all communication with state agencies
  • Ensure proper filing of all required documentation
  • Protect your rights throughout the process
  • Fight for maximum available benefits
  • Guide you through alternative benefit options

It may take longer to resolve your uninsured employer claim, but other means are available to protect your rights and claims under California law. Don’t let your employer hide behind their failure to secure workers’ compensation insurance.
Free consultations are offered so that you can learn about your case and options. Your rights matter, and we’re here to help you protect them.