California · Business and Professions Code - BPC

BPC §7125.4: (a) The filing of the exemption certificate prescribed by this article that is false, or the employment of a person subject to coverage under the workers’ compensation laws after the filing of an exem

Misdemeanor

What this law says, in plain English

Filing false workers' compensation exemption certificates or employing workers without maintaining required coverage subjects licensees to civil penalties and qualifiers to criminal misdemeanor liability.

Read the full statutory text
(a) The filing of the exemption certificate prescribed by this article that is false, or the employment of a person subject to coverage under the workers’ compensation laws after the filing of an exemption certificate without first filing a Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in accordance with the provisions of this article, or the employment of a person subject to coverage under the workers’ compensation laws without maintaining coverage for that person, constitutes cause for disciplinary action, including, but not limited to, the following civil penalties: (1) A minimum civil penalty of ten thousand dollars ($10,000) per violation for any sole owner licensee found to have employed workers without maintaining workers’ compensation coverage. (2) A minimum civil penalty of twenty thousand dollars ($20,000) per violation for any partnership, corporation, limited liability company, or tribal business licensee found to have employed workers without maintaining workers’ compensation coverage. (3) Additional civil penalties for any subsequent violations, not to exceed a total of thirty thousand dollars ($30,000) per occurrence. (b) Any qualifier for a license who, under Section 7068.1, is responsible for assuring that a licensee complies with the provisions of this chapter is also guilty of a misdemeanor for committing or failing to prevent the commission of any of the acts that are cause for disciplinary action under this section. (c) The board shall not renew or reinstate a license in violation of this section until the applicant or licensee provides the board with a current and valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance in the applicant’s or licensee’s business name.

Verify at the official source: California legislative text

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.