Is Workers’ Compensation Mandatory in California?
All California businesses, no matter if they employ one or 100 employees, are required to have workers’ compensation coverage. Even if the business is headquartered in another state, if employees regularly work in California, workers’ compensation is mandatory for the company. Workers’ comp is required for both full-time and part-time employees.
While workers’ compensation coverage is not mandatory for independent contractors and sole proprietors, it is still highly recommended. Personal health insurance providers may deny the claim when an injury is work-related. The individual would be responsible for paying medical bills out of pocket if they don’t have workers’ compensation insurance. Self-employed individuals are encouraged to visit the California Department of Industrial Relations for more information about their rights and liabilities.