What workers' compensation means for a California employer
Workers' compensation is how a California employer secures payment for a work injury without a lawsuit over fault. The Department of Industrial Relations describes the exchange: the employee is entitled to prompt medical treatment and the other statutory benefits for an on-the-job injury or illness no matter who is at fault, and in return is prevented from suing the employer over that injury. Labor Code section 3700 says every employer except the state shall secure the payment of compensation.
That section gives two ways. The usual way is a policy from an insurer authorized to write compensation insurance in this state. The other is a certificate of consent to self-insure from the Director of Industrial Relations, issued only after proof that the employer can pay compensation that becomes due. DIR's employer page states the working rule in one sentence: a business with one or more employees has to meet the duty. A Stockton taqueria with one dishwasher sits inside that sentence.
Whether an owner can be left off the policy is a narrower question than this definition, and it depends on the form of the business. That discussion stays on the exemption article. What the policy costs follows payroll and a classification filed with the Workers' Compensation Insurance Rating Bureau. Our cost calculator shows the arithmetic from the approved advisory pure-premium rates. It is not a quote. The policy file starts on workers' compensation insurance.
Questions
What is workers' compensation in California?
It is how an employer secures payment for a work injury without a lawsuit over fault. Labor Code section 3700 says every employer except the state shall secure the payment of compensation.
Does one employee trigger the duty?
Yes. The Department of Industrial Relations says a business with one or more employees has to meet the requirement.
What are the two ways to secure it?
A policy from an insurer authorized to write compensation insurance in this state, or a certificate of consent to self-insure from the Director of Industrial Relations after proof the employer can pay.
Is the calculator a quote?
No. It applies the approved advisory pure-premium rates to payroll and classification. A policy file starts on the workers' compensation page.
Sources
- Labor Code section 3700 (leginfo.legislature.ca.gov, checked October 5, 2026). Every employer except the state shall secure compensation by authorized insurance or by a certificate of consent to self-insure.
- DIR, Division of Workers' Compensation, employer information (dir.ca.gov, checked October 5, 2026). A business with one or more employees must provide workers' compensation. Benefits include medical care regardless of fault, and the employee does not sue the employer over that injury.
- WCIRB (wcirb.com). California's workers' compensation rating organization. The calculator uses the advisory pure-premium rates the Insurance Commissioner approved effective September 1, 2025, as described on that calculator page.
Related: Glossary · Workers' comp with employees · Stockton office · Esta página en español.