Santa Cruz County District Attorney Bob Lee announced that on Aug. 12, 2008, a sting operation was conducted at nail salons in Santa Cruz County, Calif., that led to five citations. The operation was conducted to enforce laws concerning workers’ compensation insurance coverage. The operation was conducted by investigators from the California Department of Insurance and Santa Cruz District Attorney’s Office.
The operation was in response to complaints of businesses failing to have required workers’ compensation insurance coverage on employees. Businesses who do not carry the insurance can undercut prices of the legitimate businesses because they have less overhead.
Enforcement and compliance provides a level playing field for all businesses, the D.A. said.
During the operation 29 Nail Salons were visited and, five citations were issued for failing to have workers’ compensation Insurance. The investigation is continuing and several more citations are expected to be issued, the office said.
Workers’s compensation insurance is required by state law for businesses who have employees. It not only provides help to injured workers, it protects businesses from certain liability.
The Santa Cruz District Attorneys Office has an ongoing workers’ compensation insurance compliance program and further stings will take place in the future.
Source: Santa Cruz DA
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