A contractor fails to secure workers' compensation coverage. What is the maximum civil penalty per employee for the first violation?
Correct Answer
C) $10,000
Under B&P Code Section 7125, the penalty for first-time workers' compensation violations is up to $10,000 per employee.
Why This Is the Correct Answer
$10,000 is the correct maximum civil penalty per employee for a first-time workers' compensation violation under B&P Code Section 7125. This substantial penalty reflects the seriousness of failing to protect employees with mandatory coverage.
Why the Other Options Are Wrong
Option A: $15,000
$15,000 is incorrect. This figure is not the penalty for a first violation — it may be confused with penalties for subsequent violations or other regulatory fines. The first-violation cap is $10,000 per employee.
Option B: $5,000
$5,000 is incorrect. This understates the penalty. The actual maximum for a first violation is $10,000 per employee under B&P Code Section 7125.
Option D: $25,000
$25,000 is incorrect. While this sounds like a round penalty figure, it exceeds the statutory maximum for a first violation. The $10,000 cap applies per employee for initial violations.
Memory Technique
Think '10 for the first time' — $10,000 per employee on the first offense for missing workers' comp. Ten fingers, first time = $10,000.
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A contractor fails to maintain workers' compensation insurance. The CSLB may suspend the license and impose a penalty of up to: