Workers' Compensation by state

Workers' compensation requirements in California

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Direct answer

Does California require workers' compensation insurance?

Yes. California requires workers' compensation coverage once a business has one or more employees, under the California Workers' Compensation Act. California requires every employer with one or more employees to carry workers' compensation coverage, even for a single part-time worker.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

California requires every employer with one or more employees to carry workers' compensation coverage, even for a single part-time worker. Coverage can be obtained from a licensed insurer, an approved self-insurance plan, or the State Compensation Insurance Fund.

Coverage trigger: One or more employees
If you go without coverage: Operating without required coverage is a misdemeanor and can bring stop-order penalties, substantial fines, and personal liability for an injured worker's benefits.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Sole proprietors and business owners with no employees
Certain corporate officers and directors who are sole shareholders and elect out
Some LLC members and general partners who elect to exclude themselves

Statutes and sources

California Workers' Compensation Act

Cal. Lab. Code sect. 3700 et seq.

Regulator: California Division of Workers' Compensation . Last verified 2026-07-29 from the official source .

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