What Happens if Your Employer Has No Workers’ Comp Insurance in California?

 Posted on September 10, 2026 in Workers' Compensation

Getting hurt at work can be stressful, especially if you learn that your employer has no workers’ compensation insurance. You’re left wondering who will pay your medical bills or cover part of your lost wages.

California law still gives injured workers ways to seek benefits when an employer is uninsured. If you were hurt while working for an uninsured employer in 2026, a Santa Clara County, CA workers’ compensation attorney can explain what options are available to you.

Are California Employers Required to Have Workers’ Comp Insurance?

According to California Labor Code Section 3700, California employers must have workers’ compensation coverage, even if they have only one employee. Employers can buy insurance or get state approval to insure themselves. An employer that fails to get required coverage is illegally uninsured.

If your employer did not have insurance, you do not automatically lose your right to workers’ comp benefits. The employer is still responsible for benefits related to your work injury, including covered medical care and disability payments.

How Do You Get Workers’ Comp in California if Your Employer Is Uninsured?

You may still seek workers’ compensation benefits if your employer did not have insurance when you were hurt. You should report the injury and begin the claim process as you normally would.

Depending on your injury, available benefits may include:

• Medical care for your work injury
• Temporary disability payments if you cannot work while you recover
• Permanent disability payments if your injury causes lasting problems
• Help paying for job retraining if you qualify

An uninsured employer may be responsible for paying these costs. If the employer does not pay what you are owed, you may be able to seek payment through California’s Uninsured Employers Benefits Trust Fund (UEBTF).

What Is the Uninsured Employers Benefits Trust Fund in California?

The Uninsured Employers Benefits Trust Fund (UEBTF) can pay workers’ comp benefits when an employer illegally fails to carry workers' comp insurance and does not pay them. The fund gives injured workers another way to seek payment when there is no insurance company handling the claim.

Keep in mind that there are extra steps involved in a UEBTF claim. The California Division of Workers’ Compensation says a worker should file an Application for Adjudication of Claim before asking the UEBTF for benefits.

You must also give the employer and UEBTF the required documents. Errors during this process can slow down a claim, so make sure you follow the instructions carefully. An attorney can help you make sure the right forms are filed and sent to the right parties.

Can You Sue an Uninsured Employer in California?

An injured worker may also be able to sue an employer that failed to carry workers’ comp insurance. This is different from most workplace injury cases, as a lawsuit and a workers’ comp claim follow different rules.

Workers’ comp is usually the main way employees recover benefits after a job injury. However, California Labor Code Section 3706 allows an injured employee to file a civil lawsuit when the employer did not have required workers’ comp coverage.

What Happens to a California Employer Without Workers’ Comp Insurance?

An employer can face criminal and financial penalties for failing to carry workers’ comp insurance. Under California law, operating without required coverage is a misdemeanor. The state can also order the employer to stop using employee labor until it gets coverage.

These penalties are aimed at the employer. Injured employees still need to take action to seek their own workers’ comp benefits.

What Should You Do Immediately Following Your Injury if Your CA Employer Has No Workers’ Comp Insurance?

You should report your injury and get medical care as soon as possible. Keep copies of your medical records and any messages you exchange with your employer about the injury.

You should investigate whether your employer had insurance on the date you were hurt, even if you weren’t told about it. If there is no coverage, you may need to take extra steps to seek benefits through the UEBTF.

Contact a Santa Clara County, CA Workers’ Compensation Lawyer

An uninsured employer can make it harder to get the benefits you need after a work injury. If you were hurt while working for an employer without coverage, Raul Martinez Injury Law Firm can help you navigate the process and get compensation.

For a free consultation, contact our Gilroy, CA workers’ compensation attorney or call 408-848-1113 to discuss your claim. Attorney Raul Martinez has over 15 years of legal experience.