A contractor's employee is injured on a job site. The contractor failed to carry workers compensation insurance. What is the potential fine under SC law?
Correct Answer
D) $1,000 - $10,000 per employee
South Carolina imposes fines of $1,000 to $10,000 per employee for contractors who fail to maintain required workers compensation coverage.
Why This Is the Correct Answer
South Carolina imposes civil penalties of $1,000 to $10,000 per employee for contractors who fail to maintain required workers compensation coverage. The per-employee basis means the total fine can be substantial on a larger crew, and the penalty applies regardless of whether any injury actually occurred — though an injury obviously triggers enforcement scrutiny.
Why the Other Options Are Wrong
Option A: $5,000 - $10,000
$5,000 to $10,000 is a narrower range that falls partly within the correct range but misstates the floor. The statute's minimum starts at $1,000, not $5,000.
Option B: $10,000 - $25,000
$10,000 to $25,000 exceeds the statutory maximum per employee. This range might be confused with OSHA penalties or penalties in other states.
Option C: $1,000 - $5,000
$1,000 to $5,000 correctly states the floor but understates the ceiling. The maximum per-employee fine under SC law is $10,000, not $5,000.
Memory Technique
Remember '1 to 10, per person': $1,000 minimum to $10,000 maximum, and that penalty is assessed for EACH employee not covered. A contractor with 5 uninsured workers could face up to $50,000 in total fines.
More South Carolina Questions
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