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HomeLabor CodeDiv. 4Pt. 1Ch. 4Art. 2§ 3721 Lien Cancellation Certificate

§ 3721 Lien Cancellation Certificate

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

§ 3721 Lien Cancellation Certificate

Key Takeaways

  • •If an employer pays what they owe to a worker or a special fund, they get a paper saying a legal hold on their stuff is removed.
  • •If a worker’s request for money is finally turned down, the legal hold on the employer’s stuff is also removed.
  • •If the employer gives a promise (like a bond) to pay later, the legal hold can be removed too.
  • •If it was a mistake to say the employer didn’t have insurance, the legal hold is removed when that mistake is fixed.

Example

A worker gets hurt on the job and asks for money, but the boss didn’t have insurance. The boss pays the money they owe.

After the boss pays, they get a paper saying the legal hold on their stuff (like their house or car) is gone.

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

Official Source
View on CA.gov

§ 3721 Lien Cancellation Certificate

The director shall provide the employer with a certificate of cancellation of lien after the employer has paid to the claimant or to the Uninsured Employers Fund the amount of the compensation or benefits which has been ordered paid to the claimant, or when the application has finally been denied after the claimant has exhausted the remedies provided by law in those cases, or when the employer has filed a bond in the amount and with such surety as the appeals board approves conditioned on the payment of all sums ordered paid to the claimant, or when, after a finding that the employer was prima facie illegally uninsured, it is finally determined that the finding was in error. The recorder shall make no charge for filing the certificates of lien, for filing amended certificates of lien, or for cancellation when liens are filed in error. Cancellation of lien certificates provided to the employer may be filed for recordation by the employer at his or her expense. (Amended by Stats. 1985, Ch. 1547, Sec. 7.)

Last verified: January 21, 2026

Key Terms

certificate of cancellation of lienUninsured Employers Fundprima facie illegally uninsuredappeals board

Related Statutes

  • § 3711 Employer Insurance Verification Requirement
  • § 3716.2 Uninsured Employers Fund Payments
  • § 3717.2 Director Authority Over Shareholders
  • § 3718 Uninsured Employers Fund Actions
  • § 3719 Uninsured Employers Fund Compromise

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Labor Code. Section 3721.
View Official Source