California Self-Insurance Plans (SIP) Practice Exam

When injury occurs to someone in illegal employment, California workers’ compensation law adds a penalty: the total compensation that would normally be payable is increased by 50 percent. This 50% uplift acts as a deterrent to hiring people illegally and ensures that workers in illegal work situations still receive benefits, though at a higher amount to reflect the policy aim. Practically, the worker receives 1.5 times the usual compensation. For example, if the normal benefits would be $10,000, the amount payable becomes $15,000.