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A contractor receives a project payment of $45,000 on January 15th. The contractor has 4 employees working on the project. If the contractor fails to carry workers' compensation insurance, what is the potential penalty per employee per day?

Correct Answer

C) $1,000 per employee per day

Labor Code Section 3722 imposes penalties up to $1,000 per employee per day for failure to carry required workers' compensation insurance.

Answer Options
A
$2,000 per employee per day
B
$100 per employee per day
C
$1,000 per employee per day
D
$500 per employee per day

Why This Is the Correct Answer

Labor Code Section 3722 imposes penalties up to $1,000 per employee per day for failure to carry required workers' compensation insurance.

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