If you have an employee but no workers' comp insurance, is that a crime?

• A. No
• B. It depends on the number of employees
• C. Only if an employee is injured
• D. Yes, misdemeanor

Answer: (D)

Not having workers’ compensation insurance when you hire someone is illegal in California. Employers are required to obtain workers’ comp to ensure an injured worker gets medical care and wage replacement. If you have an employee and you don’t carry coverage, you’re committing a misdemeanor. The crime isn’t tied to whether someone is injured or to how many employees you have; it’s about failing to obtain the required coverage in the first place. Penalties can include fines and, in many cases, jail time, depending on the specifics of the violation.