What is a hardship waiver?

A hardship waiver is an exemption from certain Workers’ Compensation requirements allowed by the state of California. This waiver is designed to help employers who cannot afford to provide benefits to their employees due to financial hardship. For example, if an employer’s finances are tight, they can apply for a hardship waiver, which allows them to forego certain requirements such as paying for workers’ compensation insurance. In order to be approved for a hardship waiver, employers must provide evidence that they are indeed experiencing severe financial hardship. This might include documents such as income statements, bank statements, and other financial records that show the employer is unable to afford the cost of workers’ compensation coverage. Once a hardship waiver is approved, the employer is exempted from certain requirements for a set amount of time, usually 12 months. Employers should be aware that while a hardship waiver can provide some relief, it does not give them full exemption from workers’ compensation requirements. Employers are still obligated to comply with all other workers’ compensation requirements, such as providing reasonable medical care and paying benefits to employees with work-related injuries or illnesses. Furthermore, employers should keep in mind that a hardship waiver must be renewed every year in order to remain in effect.

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