(a) Each employer must secure the payment of compensation under the
Act either through an authorized insurance carrier or by becoming an
authorized self-insurer under section 32(a)(1) or (2) of the Act (33
U.S.C. 932(a)(1) or (2)). An employer who fails to comply with these
provisions is subject, upon conviction, to a fine of not more than
$10,000, or by imprisonment for not more than one year, or both. Where
the employer is a corporation, the president, secretary and treasurer
each will also be subject to this fine and/or imprisonment, in addition
to the fine against the corporation, and each is severally personally
liable, jointly with the corporation, for all compensation or other
benefits payable under the Act while the corporation fails to secure the
payment of compensation.
(b) Any employer who willingly and knowingly transfers, sells,
encumbers, assigns or in any manner disposes of, conceals, secretes, or
destroys any property belonging to the employer after an employee
sustains an injury covered by the Act, with the intent to avoid payment
of compensation under the Act to that employee or his/her dependents,
shall be guilty of a misdemeanor and punished, upon conviction, by a
fine of not more than $10,000 and/or imprisonment for one year. Where
the employer is a corporation, the president, secretary and treasurer
are also severally liable to imprisonment and, along with the
corporation, jointly liable for the fine.
