California Governor, Arnold Schwarzenegger, signed SB 313 in November, 2009, which went into effect on January 1, 2010. It is intended to help legitimate business, including contractors, to compete against business owners that do not pay workers' compensation insurance. It increases the employer's penalty from $1,000.00 per employee to $1,500.00 per employee for a business that does not carry workers' compensation insurance.
Another portion of this bill now makes employers pay the amount they should have paid into the state treasury for each week they were uninsured for the three years prior to the citation. If the employer obtains the insurance while a penalty determination is going on, the employer's penalty will be prorated.
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