What is the punishment for not having workers' compensation insurance?

• A. A misdemeanor punishable by a fine up to $10,000.
• B. A felony charge with up to 5 years imprisonment.
• C. A misdemeanor punishable by up to $5,000 fine or 6 months.
• D. A misdemeanor punishable by a fine up to $10,000 or imprisonment for up to 1 year, and the state can issue up to $100,000 against illegally uninsured employers.

Answer: (D)

Not having workers’ compensation is treated as a serious legal violation. In California, an employer who goes uninsured faces both criminal penalties and civil penalties. The criminal side treats it as a misdemeanor with a fine up to $10,000 and/or imprisonment up to one year. Separately, the law allows the state to assess civil penalties up to $100,000 against illegally uninsured employers. This combination reflects the aim to deter non-compliance and to protect workers who would otherwise be without coverage. The other options miss one or more of these elements, either underestimating the penalties or misclassifying the offense.