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✦ Certified Specialist in Workers’ Compensation Law — Certified by the State Bar of California, Board of Legal Specialization ✦
Serving injured workers across California. Board-certified specialist; no fee unless we win.
By Eman Yazdchi, Esq. · Certified Specialist in Workers' Compensation Law, State Bar of California Board of Legal Specialization
In California, Labor Code §3706 lets a worker injured by an uninsured employer sue the employer in civil court outside the §3601 exclusive-remedy bar — and pursue both workers' compensation benefits and civil tort damages. Yazdchi Law handles California uninsured-employer claims statewide.
California Labor Code §3706 lets a California worker injured by an uninsured employer — one who failed to carry workers' compensation insurance as California Labor Code §3700 requires — sue the employer in civil court outside the California Labor Code §3601 exclusive-remedy bar. The §3706 California carve-out is the legislature's enforcement mechanism against employers who skip the comp insurance system entirely. An injured worker covered by §3706 can pursue BOTH ordinary workers' compensation benefits AND civil tort damages, including pain-and-suffering damages unavailable in the comp system.
Under California Labor Code §3601, California workers' compensation is normally the exclusive remedy against the employer. California Labor Code §3706 carves out the uninsured-employer case: when the employer failed to carry comp insurance as California Labor Code §3700 required, §3601 exclusivity does not apply, and the California worker may sue in civil court. The §3706 carve-out is direct legislative pressure — comply with §3700 insurance or face uncapped civil liability.
In a California §3706 civil action against an uninsured employer, California Labor Code §3706 works hand-in-hand with Labor Code Section 3708, which creates a presumption of employer negligence. The Section 3708 presumption shifts the burden — the uninsured employer is presumed negligent and must affirmatively prove its conduct was not the legal cause of the injury. The §3706 plus Section 3708 combination makes the civil suit easier to win than an ordinary negligence action.
Yes — under California Labor Code §3706, a California worker injured by an uninsured employer can pursue BOTH a §3706 civil action AND an ordinary workers' compensation claim through the Uninsured Employers Benefits Trust Fund (UEBTF) administered by the Division of Workers' Compensation. The UEBTF pays comp benefits — California Labor Code §4600 medical, California Labor Code §4653 TD, California Labor Code §4660 PD — when the employer cannot pay, then seeks reimbursement from the uninsured California employer.
Under California Labor Code §3700.5, an employer's failure to carry California workers' compensation insurance as California Labor Code §3700 requires is a misdemeanor — county jail and fines, plus civil penalties of $10,000 per employee on the date of the offense (or $2,000 per employee with a higher cap when no injury occurred). The §3700.5 criminal exposure runs alongside §3706 civil exposure and ordinary California Labor Code §3601 comp obligations.
Injured at work? Call (661) 273-1780
Tap to call →Last reviewed by Eman Yazdchi, Esq., May 2026.
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