California Codes

Cal. Labor Code § 3727.1 (2026)

✓ current as of May 2026

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The director may withdraw a stop order or a penalty assessment order where investigation reveals the employer had secured the payment of compensation as required by Section 3700 on the date and at the time of service of such order. The director also may withdraw a penalty assessment order where investigation discloses that the employer was insured on the date and at the time of an injury or claimed injury, or where an insured employer responded in writing to a request to furnish the status of his workers’ compensation coverage within the time prescribed.

Notes of Decisions

Cited in 2 cases, 2003–2005 · leading case: Starving Students, Inc. v. Dep't of Indus. Relations, 2005 Cal. Daily Op. Serv. 676 (Cal. Ct. App. 2005).

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Starving Students, Inc. v. Dep't of Indus. Relations, 2005 Cal. Daily Op. Serv. 676 (Cal. Ct. App. 2005). · cites it 5× “) Labor Code section 3727.1 authorizes the director to withdraw erroneous penalty assessments: “The director may withdraw a stop order or a penalty assessment order where investigation reveals the employer had secured the payment of compensation as required by Section 3700 on…”

Catalina Car Wash, Inc. v. Dep't of Indus. Relations, 2003 Cal. Daily Op. Serv. 236 (Cal. Ct. App. 2003). “(Lab. Code, § 3727.1.) 6 Walsh testified: “And it was our intent, as far as I can tell, from our records, it was our intent to renew the policy for another period.”

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