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HomeLabor CodeDiv. 4Pt. 1Ch. 4Art. 2§ 3727 Employer Compensation Penalty Lien

§ 3727 Employer Compensation Penalty Lien

Labor Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 3727 Employer Compensation Penalty Lien

Key Takeaways

  • •If a boss doesn't pay the required money to help workers who get hurt on the job, the government can put a special hold on the boss's stuff (like their house or car).
  • •This hold means the boss can't sell their stuff until they pay the money they owe.
  • •The government can do this in any county where the boss has stuff.
  • •Once the boss pays the money, the government will remove the hold.

Example

A boss doesn't pay the money to help workers who get hurt on the job.

The government can put a hold on the boss's house so they can't sell it until they pay the money they owe.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 3727 Employer Compensation Penalty Lien

If the director determines pursuant to Section 3722 that an employer has failed to secure the payment of compensation as required by this division, the director may file with the county recorder of any counties in which such employer’s property may be located his certificate of the amount of penalty due from such employer and such amount shall be a lien in favor of the director from the date of such filing against the real property and personal property of the employer within the county in which such certificate is filed. The recorder shall accept and file such certificate and record the same as a mortgage on real estate and shall file the same as a security interest and he shall index the same as mortgage on real estate and as a security interest. Certificates of liens may be filed in any and all counties of the state, depending upon the information the director obtains concerning the employer’s assets. The recorder shall make no charge for the services provided by this section to be performed by him. Upon payment of the penalty assessment, the director shall issue a certificate of cancellation of penalty assessment, which may be recorded by the employer at his expense. (Amended by Stats. 1980, Ch. 852.)

Last verified: January 21, 2026

Key Terms

certificate of the amount of penalty dueliencertificate of cancellation of penalty assessment

Related Statutes

  • § 100 Employee Claim Consolidation
  • § 1409 Call Center Relocation Definitions
  • § 1410 Call Center Relocation Notice
  • § 1410.5 Call Center Notice Enforcement
  • § 1411 Call Center Employer Grant Ineligibility

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Labor Code. Section 3727.
View Official Source