California Guide · Updated 2026
California Workers' Compensation Basics for Employers
Workers' compensation is no-fault insurance covering job-related injuries and illnesses. In California it is mandatory from your very first employee, and how you respond to a claim has both legal and human consequences.
Coverage is mandatory (Labor Code §3700)
Virtually every California employer with even one employee must carry workers' compensation insurance (or be lawfully self-insured). Going without it is a criminal offense and exposes the business to significant penalties and personal liability.
When an injury happens
- Provide the DWC-1 claim form within one working day of learning about a work injury;
- Authorize up to $10,000 in medical treatment while the claim is being assessed;
- Report the claim to your insurance carrier promptly.
Reporting serious injuries
A serious injury, illness, or death must also be reported to Cal/OSHA within 8 hours (Labor Code §6409.1), and recordable injuries go on your OSHA 300 log.
Return-to-work and no retaliation
- Coordinate modified or light-duty return-to-work; the FEHA interactive process may run in parallel.
- Under Labor Code §132a, you may not fire, threaten, or discriminate against an employee for filing or intending to file a workers' comp claim.
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