One of the frequent issues we encounter at the Law Offices of Craig L. Cook is employers who fail to maintain Workers’ Compensation insurance.
While this situation can complicate the process for injured employees seeking compensation, it is by no means the end of the road.
Arkansas law provides remedies for workers when their employers neglect to carry the required Workers’ Compensation coverage, and our experienced attorneys can guide you through your options.
The Employer’s Obligation to Carry Workers’ Compensation Insurance
In Arkansas, any employer with three or more employees is required to carry Workers’ Compensation insurance or be self-insured. This rule ensures that workers are protected in the event of a workplace injury.
There are some exceptions to this requirement, such as agricultural employers and certain nonprofits. However, in most cases, failure to comply with these requirements exposes employers to serious legal consequences, including fines and civil penalties.
What the Law Says
Pertinent Arkansas law under A.C.A. § 11-9-105 states:
(b)(1) However, if an employer fails to secure the payment of compensation as required by this chapter, an injured employee, or his or her legal representative in case death results from the injury, may, at his option, elect to claim compensation under this chapter or to maintain a legal action in court for damages on account of the injury or death.
(2) In such action, it shall not be necessary to plead or prove freedom from contributory negligence, nor may the defendant-employer plead as a defense that the injury was caused by the negligence of a fellow servant, that the employee assumed the risk of his or her employment, or that the injury was due to the contributory negligence of the employee.
This statute essentially gives injured employees two options if their employer lacks Workers’ Compensation coverage:
- Claim benefits under Workers’ Compensation laws (if available).
- File a civil lawsuit for damages in Circuit Court.
Consequences for Employers Who Fail to Carry Workers’ Compensation Insurance
Employers who fail to carry the required Workers’ Compensation insurance face significant repercussions under Arkansas law.
These consequences may include:
- Fines and civil penalties imposed by state authorities.
- Loss of immunity from lawsuits: Normally, Workers’ Compensation laws protect employers from being sued in court. Without insurance, they lose this protection.
- Civil liability in court: Injured employees can sue the employer in Circuit Court for damages that go beyond Workers’ Compensation benefits.
The Right to File a Lawsuit in Circuit Court
When an employer does not maintain Workers’ Compensation coverage, injured employees may have the right to pursue a civil lawsuit in Circuit Court.
This is a significant departure from the typical process where the Arkansas Workers’ Compensation Commission has exclusive jurisdiction over workplace injury claims.
In a civil lawsuit, injured workers may seek compensation for:
- Pain and suffering: Compensation for the physical and emotional distress caused by the injury.
- Mental anguish: Damages for the psychological impact of the injury.
- Loss of earning capacity: Compensation for the long-term impact on the worker’s ability to earn a living.
Unlike Workers’ Compensation claims, civil lawsuits allow injured employees to present their case before a jury, which will determine the extent of their damages.
This process can result in significantly higher compensation than what might be awarded through the Workers’ Compensation system.
Legal Protections for Injured Employees in Civil Lawsuits
Arkansas law provides specific protections for employees pursuing civil lawsuits against employers who lack Workers’ Compensation insurance. According to A.C.A. § 11-9-105, the employer is barred from using the following defenses:
- Contributory negligence: The employer cannot argue that the employee’s own actions contributed to the injury.
- Assumption of risk: The employer cannot claim that the employee knowingly accepted the risks of their job.
- Negligence of a fellow employee: The employer cannot deflect responsibility by blaming another worker.
These legal protections level the playing field for injured workers and increase their chances of securing fair compensation.
Other Recovery Options for Injured Workers
In addition to filing a lawsuit in Circuit Court, injured workers may have other options for recovering compensation when their employer fails to carry Workers’ Compensation insurance. These options include:
- Pursuing claims against third parties: If a third party’s negligence contributed to the workplace injury (e.g., a defective product or unsafe equipment), the injured worker may file a claim against that party.
- Seeking assistance from state funds: Some states have funds to compensate workers when their employers fail to provide Workers’ Compensation insurance. Although not addressed in detail here, this option may be available in Arkansas.
These additional recovery options will be explored in greater detail in follow-up blogs.
How the Law Offices of Craig L. Cook Can Help
If your employer has failed to secure Workers’ Compensation coverage, navigating the legal process can be overwhelming. The experienced attorneys at the Law Offices of Craig L. Cook are here to help you:
- Evaluate your options: We will review your case and determine the best course of action for pursuing compensation.
- Build a strong case: Our team will gather evidence, consult medical experts, and prepare a compelling argument to support your claim.
- Represent you in court: Whether your case goes before the Workers’ Compensation Commission or a Circuit Court, we will advocate for your rights and fight for the compensation you deserve.
Contact Us for a Free Consultation
If you’ve been injured on the job and your employer lacks Workers’ Compensation insurance, don’t hesitate to contact the Law Offices of Craig L. Cook.
Our attorneys have the experience and dedication needed to help you navigate this challenging situation and secure the compensation you’re owed.
We offer free consultations and are ready to evaluate your claim. Call us today to learn more about your rights and options under Arkansas law.
