--- title: "California Workers' Comp Requirements for Employers | MCC" description: "California workers' comp: 1 or more employees, owners and officers, penalties and the required notice, in the agency's words." url: "https://mcc-solutionsnj.com/bookkeeping/workers-comp-california" --- Workers' comp · California # California workers' compensation requirements Which employers must carry coverage, how owners and contractors are treated, and what the agency's pages say about penalties, the workplace notice, self-insurance and checking a policy. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) **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](https://www.wcirb.com/) Agency California Division of Workers' Compensation (DWC) ## In the agency's words **The rule** Hiring in another state? [Employer registration in California, done for you](/bookkeeping/out-of-state-employer-registration), or [a free bookkeeping health check](/bookkeeping/health-check). "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](/bookkeeping/do-i-need-workers-comp-checker?state=ca&employees=2&industry=other&biz=llc) - **4 employees, construction, corporation:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=ca&employees=4&industry=construction&biz=corporation) - **6 employees, most businesses (not construction), sole proprietor:** Required. [See why](/bookkeeping/do-i-need-workers-comp-checker?state=ca&employees=6&industry=other&biz=sole) Your own numbers: [open the checker for California](/bookkeeping/do-i-need-workers-comp-checker?state=ca). ## 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)](https://dir.ca.gov/DWC/Employer.htm) (checked November 2026) - [Answers to frequently asked questions about workers' compensation for employers (California DWC)](https://dir.ca.gov/DWC/faqs.html) (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](/bookkeeping/workers-comp-requirements-by-state) · [District of Columbia](/bookkeeping/workers-comp-district-of-columbia) Keeping coverage records in California? ## Workers' Comp and Business Insurance Records Kit A state coverage checklist with California's rule and official link, a certificate of insurance log for subcontractors, an injury report and claim log, and a workbook that flags policy renewals and expiring certificates, as Word files and PDFs. [Get the kit ($15)](/toolkits/workers-comp-and-insurance-records-kit) [Free sample](/toolkits/workers-comp-and-insurance-records-kit#free-starter)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Want payroll and insurance records kept for you? [See bookkeeping services](/bookkeeping/)[Call (908) 444-6373](tel:+19084446373)