California Worker's Compensation Compliance Law

In California, employers are required to carry workers' compensation insurance.

In California, the law requires all employers to carry workers' compensation insurance, regardless of the number of employees. Failure to carry this insurance is considered a criminal offense and could result in severe financial penalties or even incarceration.

What Workers' Compensation Insurance Covers

An employer's workers' compensation insurance policy covers employees who are injured at the workplace or while in the course of performing job duties. It is considered to be "no-fault" insurance. Benefits can include medical care, temporary disability, permanent disability, supplemental job displacement and death benefits.

How to Obtain Coverage

Many insurance companies and agents provide workers' compensation insurance in California. Comparison-shop to find a policy that both meets your needs and provides the best coverage for your business. Another option is to become self insured. This requires submitting an application to the California Department of Industrial Relations. The application must be approved before self-insurance can be an option.

When an Injury Occurs

If an employee becomes injured while at work, provide a claim form to the employee within one working day after you have been notified of the injury. Furthermore, it is illegal to fire or punish an employee in retaliation for filing a workers' compensation claim.

References

• California Department of Industrial Relations Employer Fact Sheet

Resources

• California Department of Industrial Relations