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Bakery Short on Dough After $166K Fine for Lack of Comp Coverage

  • State: California
  • Topic: WEST
  • - Popular with: Legal
  • -  0 shares

A bakery in Carmel is reportedly struggling to stay afloat after being hit with a $166,080 fine for not carrying workers’ compensation insurance.

Lafayette Bakery was ordered to pay the penalty in a judgement filed March 5 in Monterey County Superior Court, the Monterey County Weekly reported on Thursday. The business’ work comp coverage reportedly lapsed for about 17 months, from April 2, 2017, to Sept. 11, 2018.

The bakery owner’s daughter told the publication that the lapse occurred because the business’s accountant didn’t update a debit card that made automatic payments.

State officials shut down the bakery in September for failure to carry workers’ comp insurance, the Weekly reported. It reopened four days later but incurred costs over that time from the loss of perishable goods and having to pay workers during the closure.

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George Corson Mar 22, 2019 a 12:03 pm PDT

This is a sad story, but there are usually a few warning letters before Coverage is actually cancelled. The only thing more expensive than WC Insurance is getting caught without it. Coverage appears to have cost them about 5K per month; the Penalty is now 10K per month of non-insurance. That 80K difference can be a lot of dough for a small business.

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