What Is California Labor Code §3706 (Sue an Uninsured Employer)?

How does §3706 actually carve a path out of California exclusive remedy?

The civil action allows recovery of pain and suffering, full lost earnings, and punitive damages, amounts workers' comp alone never pays.

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.

What does Section 3708 add to a California §3706 civil case?

Section 3708 adds a presumption of employer negligence once section 3706 civil exposure is established, shifting the burden to the employer to disprove fault.

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.

Can a California §3706 worker also collect ordinary comp benefits?

A section 3706 worker can also collect ordinary comp benefits from the UEBTF in parallel with the civil suit, stacking both avenues of recovery.

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.

What is the California §3700.5 misdemeanor consequence for the uninsured employer?

Section 3700.5 imposes a misdemeanor criminal penalty on every employer who operates without workers' comp coverage required by section 3700.

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.

Related on yazdchilaw.com: California workers' compensation lawyer pillar · California Labor Code §5400.30 explained · California Labor Code §3700.6 explained · what to do if you can't go back to work after a workers' comp injury.