Insureon Blog

What Happens When Small Businesses Violate Workers’ Compensation Laws?

21. February 2014 08:30

Health aide helps older woman.

Last week, reported that a Bronx-based home healthcare business was arrested and arraigned for failure to pay its workers and violations associated with New York State’s Workers’ Compensation laws. The defendants, business owners Maria Etim and Charles Mayers and manager Wayne Patterson, could end up spending four years in prison.

This is a particularly egregious example of what happens when small-business owners fail to comply with local Workers’ Compensation laws. For nearly four years, these three hired personal home care aides to care for severely disabled patients and refused to pay them. Additionally, the business owners did not carry Workers’ Compensation Insurance, file quarterly tax returns, or pay required unemployment insurance taxes for their employees.

But your business does not have to act with such recklessness in order to find itself in violation of local Workers’ Compensation Laws – even businesses honestly trying to comply could have room for improvement.

What Small-Business Owners Need to Know about Local Workers’ Compensation Regulations

You likely already know that most states require business owners to carry Workers’ Compensation Insurance, a type of coverage that helps you compensate employees when they get sick or hurt at work.

But are you completely familiar with your state’s rules and regulations? If not, be sure to check out our state-by-state breakdown of Workers’ Compensation Insurance laws. In the meantime, consider the following questions:

The point is, it can be relatively easy for small-business owners to unintentionally find themselves on the wrong side of state Workers’ Compensation laws. Most of that has to do with the fact that the rules, regulations, and exemptions are so varied – the questions above only serve to scratch the service of Workers’ Comp requirements in the United States.

If you liked this post, you may be interested in learning about ways to manage your WC costs. Check out our Workers' Comp Insurance Quote Analysis for more info.


Allied Health Insurance | Risk Management | Small Business Risk Management | Workers' Compensation Insurance

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