New Labor Laws in California | Workers' Compensation Requirements in California
New Labor Laws and Workers' Compensation in California
New labor laws that seek to provide wage and benefit protections to workers are set to come in effect in California from January 1, 2020. Now is the time to ensure your company is compliant with the law with regards to employing workers as employees, and having workers' compensation insurance in place.
Employees are your most valuable asset, and you can protect them and your business with Workers Compensation Insurance (workers comp), in meeting California legal requirements.
Who does the Labor Law cover
The new labor law is set to take effect January 1, 2020 and makes it more difficult for companies to classify staff as independent contractors instead of employees. Companies will be required to employ workers as employees, with employees entitled to minimum wage and benefits such as workers' compensation.The law will affect most industries including trucking and transportation, construction workers, janitors, health assistants, teachers, hairstylists, beauticians and most workers in the service industry.
In particular the new law has been a lot of attention with its effect on transportation, trucking, ridesharing and meal delivery drivers, due to those companies those companies paying their drivers on a per-ride basis and/or not providing benefits such as health insurance and paid leave.
What does Workers Compensation Insurance cover?
- Workers Comp covers injuries in the workplace and while workers are commuting to and from work. For Example, if an employee is injured while lifting inventory.- Workers Comp covers employees while driving to and from their work. For example, if an employee gets in an accident while driving to work.
Who requires Workers' Compensation
Basically any entity that is employing staff as an employee, not as a contractor, is required to provide benefits such as workers compensation.Difference between Employees and Contractors
An employee, is any worker that has a manager or boss who exercises control over the worker.On the other hand, to be classed as a contractor, a worker must be free from control of the entity, performing work outside the usual course of the hiring entity's business, and engaged in an independently established trade, occupation or business of the same nature as the work they are performing.
Categories specifically exempted under the law amount only to about 10 percent of the workforce, such as highly paid professionals including doctors and dentists, lawyers, accountants and real estate agents.
Ramifications of new Labor Laws concerning Workers' Compensation
It is estimated that the new law requirements could apply to a majority of current independent contractors, including truck drivers, delivery drivers and taxi drivers, janitors and maids, retail workers, grounds maintenance workers and childcare workers, having to be re-classified as employees instead of independent contractors. Unless certain strict criteria are met, this is would also include construction workers, hairdressers and barbers, designers and other artists, fitness personal trainers and sales representatives.Who does Workers Compensation protect
-Workers Comp protects both employees and employers from the financial effects of work related injuries.Workers Comp
Workers Compensation Insurance is also know as Workers Comp.How does Workers Compensation protect employees?
- Workers Comp provides benefits for work related injury or illness- Workers Comp pays employees' medical expenses
- Workers Comp helps to replace lost pay while out of work or disabled for a period of time
How does Workers Compensation protect employers?
- When an injured worker obtains Workers Compensation benefits they cannot sue the employer for damagesWorkers Compensation Coverage for Sole Proprietors
Even if you are a Sole Proprietor with no employees, there are many good reason to buy Workers Compensation, as it can cover your own medical expenses and lost income while recovering.Workers Compensation benefits for Sole Proprietors
- Workers Comp covers medical expenses- Workers Comp covers lost income.
Risk Management Review
If you employ workers, please contact us today for information about how the laws could affect your business and how we can ensure you are adequately covered with the most appropriate workers' compensation insurance to cover you, your business and your workers.Contact Stephen Thomas, Insurance Broker in California for more information about Workers Compensation, Workers' Compensation Insurance Quotes and Truck Insurance Quotes in California
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