By Stephanie Goldberg, Crain News Service
CHICAGO (May 19, 2014) — Virginia soon will “significantly” increase its maximum penalty up to $50,000 for employers who don't provide employees — including subcontractors — with workers' compensation insurance, the Virginia Workers' Compensation Commission said last week.
An amendment to the Virginia Workers' Compensation Act, effective July 1, increases the maximum civil penalty for employers who have more than two part-time or full-time regular employees and don't carry workers' comp insurance, according to a statement May 13 from the commission.
Beginning July 1, employers failing to insure workers under Virginia law will incur a civil penalty of up to $250 for each day of noncompliance, and be subject to a maximum penalty of $50,000 plus additional collection costs.
Currently, employers that fail to provide coverage face a civil penalty of up to $5,000 for each instance of noncompliance, according to Virginia comp law.
The commission noted that Virginia requires employers who hire subcontractors to count the subcontractor's employees in addition to its own employees in determining coverage requirements.
“‘Employee' includes…(subcontractor's employees), corporate officers, minors, undocumented workers, working family members, apprentices, temporary and seasonal employees,” the statement reads. “A business that doesn't count all of its employees may not realize it is required to carry coverage.”
This report appeared on businessinsurance.com, the website of Crain's Business Insurance magazine, a Chicago-based sister publication of Tire Business.