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California state flag California Workers' Compensation Requirements

Required from your 1st employee

At a glance

1st
employee threshold (general)
0
construction threshold (same as general)
Private market
buy from any carrier
CA Department of Industrial Relations - Division of Workers' Compensation
official source (verified 2026-09-08)

The details

SB 216 phase-in: as of 2026 all licensed contractors must carry WC even with zero employees. Household/domestic employees covered if HH wage threshold exceeded.

FAQ

Do I need workers' compensation in California?

Yes — California requires coverage as soon as you hire your first employee (full-time or part-time).

What about construction businesses in California?

Licensed contractors must carry coverage even with zero employees (SB 216 phase-in).

What if I don't carry required coverage in California?

Penalties vary by state and can include per-employee per-day fines, stop-work orders, and personal liability for injury claims. Check the official source below for California's current enforcement posture.

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Official source: CA Department of Industrial Relations - Division of Workers' Compensation · Verified 2026-09-08 (official) · Compare all states · Construction rules · Farm rules