### Workers’ Compensation: Uninsured Employers and the Transfer of Real Property — What SB 847 Means for California’s Future
In California, the intersection of labor laws and property rights has often been a battleground. With the passage of SB 847, the state has taken a decisive step toward addressing the pressing issue of uninsured employers. This legislation, now Chapter 790 of the Statutes of 2025, has the potential to reshape not only how workers’ compensation is handled but also how we view accountability in the workplace.
The issue of uninsured employers is no small matter. According to the California Department of Industrial Relations, thousands of workers are left vulnerable each year due to employers who fail to obtain mandatory workers’ compensation insurance. This negligence places an undue burden on the state, which often ends up covering costs for injured workers through public assistance programs. Moreover, it creates an uneven playing field for compliant businesses, who shoulder the costs of insurance while their uninsured competitors can undercut prices.
SB 847 is a response to this crisis, aiming to facilitate the transfer of real property owned by uninsured employers to ensure that injured workers have access to compensation. By allowing the state to pursue real asset recovery in cases where employers have failed to uphold their responsibilities, the bill seeks to create a more equitable system. This move could dissuade employers from skirting their obligations, thereby increasing compliance rates and protecting workers.
However, the impact of SB 847 is not just theoretical. The public response has been mixed, with advocates praising the bill as a necessary step toward protecting workers’ rights, while critics argue it may disincentivize entrepreneurship and discourage small business growth. For instance, a small business owner in Los Angeles expressed concern that the bill could lead to increased scrutiny and potential financial repercussions for businesses that mistakenly lapse in coverage. “We’re trying to create jobs, not navigate a minefield of regulations,” they argued.
Yet, the reality is that the stakes are too high for California’s workforce to ignore the implications of this bill. As we move toward a post-pandemic economy, ensuring that every worker has access to proper compensation is not just a moral obligation but an economic necessity. The potential for increased insurance coverage could lead to a more robust labor market, where workers feel secure enough to report injuries without fear of retaliation or financial ruin.
Moreover, the implications of SB 847 extend beyond the immediate context of workers’ compensation. This legislation signals a shift in how California is willing to address employer accountability. If the state can successfully enforce asset recovery, it may pave the way for more stringent regulations in other sectors, creating a precedent for holding businesses accountable for their actions.
As we look toward the future, the question remains: How will this bill be implemented, and will it achieve its intended goals? The legislative framework is in place, but the success of SB 847 will ultimately depend on the willingness of the California government to allocate the necessary resources for enforcement and education. Public awareness campaigns will be crucial in informing both employees and employers about their rights and responsibilities under this new law.
In conclusion, SB 847 represents a critical shift in California’s approach to uninsured employers and workers’ compensation. While there are valid concerns about its impact on small businesses, the overarching need to protect workers cannot be overstated. As this legislation unfolds, the real challenge will be in balancing the interests of employers with the rights of workers, ensuring that California remains a place where both can thrive. The next steps will require collaboration, transparency, and a steadfast commitment to creating a fair labor landscape. For all stakeholders involved, the time to engage in this conversation is now.
Bill Details
- Bill Number: SB 847
- State: CA
- Status: Status not available
- Last Action: Chaptered by Secretary of State. Chapter 790, Statutes of 2025.
- Read Full Bill Text
