Wednesday, October 22, 2008

California Firms Cited for No Workers' Comp

Officials with California's Division of Labor Standards Enforcement (Labor Commissioner’s Office) issued 115 citations totaling $477,966 in fines to construction firms across the state for various labor law violations in a recent two-day enforcement activity that concluded on Oct. 16.

Thirty-three teams of investigators conducted the inspections of 369 companies at residential and commercial construction sites across the state. Officials subsequently made referrals to the District Attorneys in San Francisco, Yolo and Los Angeles counties.

The inspections revealed that nearly one out of every four employers investigated failed to obtain workers’ compensation insurance. Contractors and their subcontractors must have workers’ comp insurance when hiring employees. An exception does exist for work being done exclusively by parents, siblings or children of the contractor.

Additional violations encountered included the failure to obtain a California contractor’s license as well as businesses that paid their employees but did not provide itemized deduction statements.

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