SB1878 Bill Summary

• Modifies civil penalties for employers who fail to obtain workers' compensation insurance, establishing tiered penalties of $1,000 per employee (hazardous industries) or $500 per employee (other industries) for first offense, with additional $100 per employee per month up to 36 months of non-compliance.

• Allows the Commissioner of Labor to reduce penalties by 10% if coverage is obtained within 30 days of citation, 10% if penalty is paid within 30 days, and up to 30% discretionary reduction based on business history, violation severity, and compliance efforts.

• Establishes cease and desist authority for employers with two violations who fail to obtain coverage within 30 days of second citation.

• Requires employers to post proof of workers' compensation compliance in workplaces; violations subject to fines up to $500 with each week of non-compliance constituting a separate offense.

• Creates whistleblower program allowing individuals reporting non-compliant employers to receive up to 25% of collected penalties (maximum $10,000), with reporter identity kept confidential.

• Directs Commissioner of Labor to annually approve a list of most hazardous industries based on NAICS codes, considering total injuries, fatalities, fatal incident numbers, experience modifiers, and other hazard factors; effective November 1, 2012.