Najib Mohammad Samara, 58, was arrested at his Hesperia business and booked into the San Bernardino County jail in Victorville. He is being held in lieu of $25,000 bail.
Samara was the subject of a criminal investigation in January 2012 by the Workers' Compensation Insurance Fraud Unit.
As a result of the investigation, criminal charges were filed against Samara for failing to maintain workers' compensation insurance for his employees, according to the DA's office.
At his June arraignment, Samara provided documents to the court proving he was current with the state required insurance.
Officials with the District Attorney's office said that the insurance policy Samara provided to the court, was cancelled a month later due to non-payment.
In November, the California Department of Standards and Labor Enforcement (DSLE) conducted a follow-up inspection for possible violation of California Labor Laws and confirmed that Samara did not have workers' compensation insurance for his employees, according to DA's officials.
DSLE issued several citations for California Labor violations and issued a "Stop Order" advising Samara that no employees were allowed to work at his business, officials said.
Samara, if convicted, faces a possible one year in prison and a fine starting at $10,000.
"Unfortunately, there are several business owners who put their employees at great risk by refusing to carry the required workers' comp coverage," San Bernardino County District Attorney, Michael Ramos said. "This practice also creates an unfair disadvantage for those business owners who follow the rules. Enough is enough. This office will continue to prosecute those who fail to comply with the laws of conducting business in our county."