They will cheat the system.
Robert Gunn, 70, of Pacific Grove, pleaded guilty to one felony count of failure to register as an employer and one misdemeanor count of failing to secure workers’ compensation insurance. A Department of Insurance investigation found that Gunn had not purchased workers’ compensation insurance prior to an employee’s injury.
“The underground economy is a multi-billion drain on California’s economy and hurts law abiding businesses,” said Commissioner Dave Jones. “Employers that cheat the system by not providing workers’ compensation not only risk employee safety but also contribute to higher costs for businesses and consumers.”