Workers Compensation California

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.