The California Department of Industrial Relations (DIR) is reminding the real estate industry regarding workers’ compensation coverage.
California requires real estate brokers to provide workers’ comP coverage for their real estate sales agents. If an agent of an uninsured broker is injured and cannot collect the workers’ comp benefits to which they are entitled through the broker’s policy, the agent receives benefits from the Uninsured Employers Fund (UEF). The UEF would, in turn, make every attempt to collect from the broker.
In addition, when an investigation is conducted by the Division of Labor Standards Enforcement and it is determined that an employer is illegally uninsured, then that employer may be liable for up to $100,000 in penalties.
All uninsured employers in the real estate industry are urged to immediately obtain workers’ comp coverage either through the state-recognized self-insurance program or through a carrier recognized by the California Department of Insurance (CDI).
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