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About 100 Contractors without Workers’ Compensation Coverage Due to Recent State Action

SACRAMENTO - The Contractors State License Board (CSLB) is alerting licensees who contracted for workers’ compensation insurance through Mainstay Business Solutions that the Department of Industrial Relations (DIR) revoked that firm’s certificate of self-insurance on April 18, 2011. Mainstay provided staffing and other services, including workers’ compensation coverage and payroll tax withholding to about 150 California businesses.

About 100 CSLB licensees have secured their workers’ compensation coverage through Mainstay. These licensees must now secure workers’ compensation coverage from another carrier within 30 days from the date identified on a soon-to-be-mailed letter from CSLB. This will assure that the license remains in good standing and is not suspended.

By law, California employers must have workers’ compensation coverage for each of their employees. That insurance can be purchased through a private carrier, the State Compensation Insurance Fund (SCIF) or through a contract with a professional employment or staffing agency. Failure to secure workers’ comp insurance can result in employer liability for an injured worker, possible criminal charges or administrative fines, or a stop work order.

Mainstay’s existing workers’ compensation claims will be paid through the California Self Insurers’ Security Fund. For additional information, see this news release issued by DIR.

 

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