IR #2005-23
Friday, May 13, 2005

Dean Fryer
Renée Bacchini

Labor Commissioner busts auto body shops:
No workers' compensation insurance

SACRAMENTO - The California Department of Industrial Relations' Divisions of Labor Standards Enforcement (DLSE) and Occupational Safety and Health (Cal/OSHA), in cooperation with the Department of Insurance (DOI), and the Sacramento and Yolo County District Attorney's Offices today released information on violations found in a two day enforcement sweep of auto body shops in Sacramento and Yolo Counties. The enforcement sweep, an unannounced inspection to check for employer compliance with workers' compensation requirements and other state workplace rules, was conducted as a follow-up to a sweep conducted this time last year. DLSE issued a total of $21,000 in penalties to companies not having workers' compensation coverage.

"In California, workers' compensation is required as a means of protection for employees who may be injured on the job," said State Labor Commissioner Donna M. Dell. "The multi-agency approach is a very powerful enforcement tool to leverage government resources and encourage compliance by those who seek an unfair economic advantage when not following the law. Greater steps are being taken to focus enforcement efforts to address these issues in the underground economy"

During the enforcement sweep, teams of investigators from the partner agencies visited the targeted businesses looking for labor law violations. The findings are as follows:

"Our enforcement actions are meant to level the playing field for responsible employers who are at a disadvantage from unscrupulous operators," added Dell. "These enforcement actions are also an opportunity to educate employers and employees on their rights and responsibilities under the law."

In California, regulations governing wages, hours and working conditions are laid out in the Industrial Welfare Commission wage orders, which must be available at the worksite where employees can read them. Employers can access the Industrial Welfare Commission wage orders or other workplace postings on line at, click on workplace postings in the left navigation bar.