California requires coverage from your first employee, uses its own job classifications, and sets strict deadlines when someone gets hurt. Here’s what’s different for employers here.
Quick answer: California requires every employer with even one employee to carry workers’ compensation. Premiums are based on payroll and California-specific job classifications. For policies starting on or after September 1, 2026, the state’s advisory benchmark rates average $1.65 per $100 of payroll, up 10.4%, and each insurer sets its own final rates.
Full-time or part-time, one employee triggers the requirement. Penalties include stop-work orders, fines, and liability for an injured worker’s costs.
California uses job classifications set by its own rating bureau, the WCIRB, and some construction trades are split into separate rates by employee wage level.
Employers must give an injured employee a claim form within one working day of learning about the injury and report it to the insurer within five days.
| Topic | California rule | What to know |
|---|---|---|
| Who must carry it | Any employer with one or more employees | Part-time employees and family members on payroll count. |
| Advisory benchmark rate | $1.65 per $100 of payroll | For policies starting September 1, 2026, up 10.4%. Insurers set their own rates from this baseline. |
| Experience mod eligibility | Set yearly by the WCIRB | Recently about $10,200 in annual premium. Smaller policies are rated without a mod. |
| Serious injury reporting | Within 8 hours to Cal/OSHA | Applies to serious injuries, illnesses, and deaths on the job. |
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Yes. California requires every employer to carry workers’ compensation, even with a single part-time employee. Going without can bring stop-work orders, fines, and personal liability for an injured worker’s medical bills and lost wages.
The WCIRB recommends benchmark rates by job classification, and the Insurance Commissioner approves them as advisory. For September 1, 2026, those benchmarks average $1.65 per $100 of payroll, up 10.4%. Each insurer then files its own rates, so prices vary.
California generally uses the ABC test from AB 5. A worker is presumed to be an employee unless the business shows all three: the worker isn’t under its control, the work is outside its usual course of business, and the worker runs an independent business of their own. Misclassified workers can be owed workers’ comp benefits.
Some can. Certain corporate officers, directors, and LLC managing members can opt out if they meet ownership and health coverage requirements and sign a waiver. Sole proprietors without employees generally aren’t required to cover themselves.
Get them medical care, give them a DWC-1 claim form within one working day of learning about the injury, and report the claim to your insurer within five days. Serious injuries must also be reported to Cal/OSHA within eight hours.
One of our licensed agents compares workers’ comp options using your payroll, job classifications, and claims history.
