California workers comp.

When coverage is required

California requires workers' comp as soon as you have one employee. Part-time work does not change this, and calling someone a contractor does not make them one. Some industries and types of workers have special rules that may apply to you.

Owners and exemptions

If you are a sole owner, you are not covered unless you add yourself to the policy. Corporate officers and directors can opt out only under certain conditions, so review them carefully. An owner opting out never removes the duty to cover employees. Check your business type, ownership, and opt-out rules with your insurer.

If an employee is injured

Workers should tell you quickly. Waiting more than 30 days can put their benefits at risk. You must give or mail the worker a DWC-1 claim form within one working day after you learn of the injury or illness. You must also send Form 5020 to your insurer within five days if the injury causes time off after the day it happened or needs care beyond first aid. These are two separate duties with their own deadlines.

Operating without coverage

Not carrying required insurance can be a crime. The state can issue a stop order that bars your employees from working until you get coverage. You can also face civil fines and have to pay the worker's benefits yourself. The total depends on the facts, so do not assume one fine is the whole cost.

How to get covered

Compare policies through a licensed insurer or agent. California's State Compensation Insurance Fund is another place to buy coverage, and some employers can apply to self-insure. Describe all your work, give accurate payroll, confirm any owner opt-outs, and ask about required worker notices and how to report claims.

Benefits and return-to-work planning

A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.

Preparing an accurate cost estimate

Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.

Forms, posters, and notices

These links go straight to California’s official forms. Your insurer can often send a poster with your policy details already filled in.

• Notice to Employees poster (DWC Form 7)

  Post it where workers will see it. Your insurer can give you a copy.

• DWC-1 claim form

  Give or mail it to the worker within one working day after you learn of the injury.

• Form 5020 employer's report rule

  Send to your insurer within 5 days when required.

• DWC employer FAQs, including the new hire pamphlet

Weekly benefit limits

These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.

Maximum

$1,764.11 a week

Minimum

$264.61 a week

Applies to

Temporary disability, starting January 1, 2026

• DWC: 2026 temporary total disability rates

Check a contractor’s coverage

The state does not track which insurer covers each employer. The Workers' Compensation Insurance Rating Bureau (WCIRB) offers coverage research by business name.

• WCIRB: coverage research

How to request and check a certificate of insurance

Owner exemptions and elections

Officers and directors who own all of the corporation's shares can choose to be left off the policy by signing a waiver. A sole owner is not covered unless they add themselves to the policy. Other employees must always be covered.

• DWC: employer FAQs

Frequently asked questions

Your next steps

• Count your employees, check owner rules, and list every place people work.
• Ask a licensed insurance agent to review your business.
• Keep proof of coverage and set up a way to report injuries.