Is workers comp required by law in California?

Yes. The California Department of Industrial Relations says every employer must carry it, even with only one employee.

What are the ways to carry workers comp in California?

A policy from an insurance company authorized in California, or a certificate of consent to self-insure from the Department of Industrial Relations. Local public agencies can also self-insure with the consent of the Director of Industrial Relations.

What is the penalty for not carrying workers comp in California?

It is a misdemeanor punishable by up to one year in county jail, a fine of up to double the premium that would have been owed (at least $10,000), or both (Labor Code section 3700.5).

California · Workers’ comp

California workers’ comp requirements

California requires every employer to carry workers’ compensation, even with only one employee. Employers carry it through an insurance company authorized in California or, with the state’s consent, by self-insuring.

This page is general information, not legal or insurance advice. InsuranceFinder doesn’t sell insurance, give quotes or take applications.

Official pages: California DIR, Division of Workers’ Compensation: Employers; California Labor Code section 3700

Who must carry it

Every California employer with one or more employees.
Roofing businesses, even with no employees.
Out-of-state employers whose employees regularly work in California may need coverage.

Official page: California DIR, Division of Workers’ Compensation: Employers

Ways to carry it

A policy from an insurance company authorized to write workers’ compensation in California.
A certificate of consent to self-insure from the Department of Industrial Relations.
Counties, cities and other local public agencies can self-insure with a certificate of consent from the Director of Industrial Relations. The State of California is not subject to these requirements.

Official page: California Labor Code section 3700

State Fund and private insurers

The State Compensation Insurance Fund writes workers’ compensation alongside private insurance companies. State law directs it to be fairly competitive with other insurers.

Official page: California Insurance Code section 11775

Penalties for going without

Failing to carry workers’ compensation, when the employer knew or should have known it was required, is a misdemeanor.
First conviction: up to one year in county jail, a fine of up to double the premium that would have been owed (at least $10,000), or both.
Second or later conviction: up to one year in county jail, a fine of triple that premium (at least $50,000), or both.

Official page: California Labor Code section 3700.5

Questions about this page

Is workers comp required by law in California?: Yes. The California Department of Industrial Relations says every employer must carry it, even with only one employee.
What are the ways to carry workers comp in California?: A policy from an insurance company authorized in California, or a certificate of consent to self-insure from the Department of Industrial Relations. Local public agencies can also self-insure with the consent of the Director of Industrial Relations.
What is the penalty for not carrying workers comp in California?: It is a misdemeanor punishable by up to one year in county jail, a fine of up to double the premium that would have been owed (at least $10,000), or both (Labor Code section 3700.5).

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Official sources

Last checked Oct 27, 2026. Rules change; check with the California Department of Industrial Relations, Division of Workers’ Compensation for your situation.