Under California workers' compensation law, you are required to pay for workers' compensation insurance as an employer. This no-fault system covers injuries, illnesses, or disabilities brought on by the environment of the workplace. Once the employee has become injured on the job or has discovered an illness brought on by the environment in the workplace, they will need to inform you, as their employer, as soon as possible.
They will need to then fill a claim form, up to line 7, while you fill out the rest of the form. As their employer, you also need to provide them with the phone number and address of the workers’ compensation company you get your insurance through. It is best to work with the injured or ill employee since refusing to provide them a claim form does not reflect well on the employer or the business.
Employees may wonder just how much workers' compensation insurance costs in California, but the answers are easy to find. They are set by the Workers’ Compensation Rating Bureau of California, with each industry having its own rate based on risk.
In the state of California, the average workers’ compensation rate was $2.25 per $100 of the payroll in 2018. This means that costs will greatly vary from a small business to a mid-size business and across industries as each industry has its own class code.
In California, Workers' Compensation coverage provides two-thirds of a worker's pretax gross income but the income is limited to a maximum amount which may affect higher-earning employees.
CoverWallet's team can help you get Workers' Compensation coverage to keep your business compliant. Our experts can also advise you on other insurance coverages that can protect your business.
In California, it is illegal to fire or harass an employee for placing a Workers' Compensation Claim. There may be other situations, however, where it is permissible to release an employee who is currently receiving Workers' Compensation benefits.
Sole proprietors without employees in California are not required to purchase Workers’ Compensation coverage. However, a sole proprietor may choose to provide coverage for themselves. It’s also common for companies that hire sole proprietors as independent contractors to require Workers’ Compensation coverage.
Injured workers are entitled to benefits in the state under California workers' compensation law. These benefits include medical benefits, permanent disability, temporary disability, return to work fund, vocational rehabilitation or training, death benefits, and compensable consequences.
Under the workers' compensation benefits in California, compensable consequences cover any additional problems caused by the initial work-related injury. For example, an employee may experience a workplace injury that causes their ankle to give way, which then causes them to injure their back or knee.
According to the California Labor Code, there are a few instances where there is a workers' comp exemption in California. Those who are exempt from workers’ compensation include owners of corporations, those who manage a limited liability company, members of a board of directors, and others. It may be surprising to learn that independent contractors, deputy sheriffs, and individuals who work for aid instead of pay are also exempt.
If you are a business owner, it's time to look into getting workers' compensation insurance. Contact CoverWallet today to set up a phone appointment to speak with one of our agents.
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Being a small business presents several challenges that may need more assistance. While CoverWallet provides you the best insurance, you can also consider these references to further support your small business:
The content provided on this page is intended for general information purposes only and is not represented to be error free nor is it intended to constitute an offer, inducement, promise or contract of any kind for you to rely upon. The information and data linked to by CoverWallet are provided as a courtesy and are not intended to nor do they constitute an endorsement by CoverWallet of the linked materials. To get accurate information for your business and industry we recommend you to contact a licensed insurance agent or attorney.
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