Short answer. Required for every employer, even with only one employee.
At a glance
- Who must carry it
- Required for every employer, even with only one employee.
- Owners and officers
- Coverage for a sole proprietor is optional and must be stated in the policy. Corporate officers and directors must be included, but officers and directors who own the whole corporation may elect to be excluded.
- Self-insurance
- Allowed with state approval.
- Going without
- Going without coverage is a misdemeanor (a fine of at least $10,000, up to a year in county jail, or both), and the state issues penalties of up to $100,000 against illegally uninsured employers. A stop order can bar using employee labor.
- Workplace notice
- Post the 'notice to employees' poster where workers can see it. Not posting can bring a civil penalty of up to $7,000 per violation.
- Check a policy
- The DWC doesn't keep employers' insurer information. It points to the Workers' Compensation Insurance Rating Bureau (WCIRB) for an insured employer, and to the state roster for self-insured employers. Open the lookup
- Agency
- California Division of Workers' Compensation (DWC)
In the agency's words
The rule
"California employers are required by law to have workers' compensation insurance, even if they have only one employee."
Owners
"Executive officers and directors of corporations must be included in workers' compensation coverage."
Going without
"the state issues penalties of up to $100,000 against illegally uninsured employers"
Notice
"You must post the 'notice to employees' poster in a conspicuous place at the work site."
Three example businesses
What the stated rule says for three common setups:
- 2 employees, most businesses (not construction), llc: Required. See why
- 4 employees, construction, corporation: Required. See why
- 6 employees, most businesses (not construction), sole proprietor: Required. See why
Your own numbers: open the checker for California.
Worth knowing
An employer can show proof of coverage with a certificate of insurance from its insurance carrier.
Not stated on the pages we read: independent contractors.
Official sources
- Employer information (California DWC) (checked November 2026)
- Answers to frequently asked questions about workers' compensation for employers (California DWC) (checked November 2026)
General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business.
Common questions
Who has to carry workers' comp in California?
Required for every employer, even with only one employee. The agency puts it as "California employers are required by law to have workers' compensation insurance, even if they have only one employee."
Do owners and officers need coverage in California?
Coverage for a sole proprietor is optional and must be stated in the policy. Corporate officers and directors must be included, but officers and directors who own the whole corporation may elect to be excluded.
What happens to a California employer with no coverage?
Going without coverage is a misdemeanor (a fine of at least $10,000, up to a year in county jail, or both), and the state issues penalties of up to $100,000 against illegally uninsured employers. A stop order can bar using employee labor.
What notice must a California employer post?
Post the 'notice to employees' poster where workers can see it. Not posting can bring a civil penalty of up to $7,000 per violation.
Can an employer self-insure in California?
Allowed with state approval.
All states: workers' comp requirements by state · District of Columbia