California workers' compensation insurance
Every California employer with employees must carry workers' comp, and rates are rising for the first time in a decade. Bliss Marc is licensed in California (#0H92044) and places coverage for home care agencies, clinics, offices and contractors across the state.
- Average advisory rate
- $1.65
- Per $100 of payroll for policies on or after Sept 1, 2026.
- Change from 2025
- +6.6%
- Approved by the Insurance Commissioner (WCIRB proposed 10.4%).
- Stop-order penalty
- $1,500
- Per employee, under Labor Code section 3722.
The law: Labor Code section 3700
California requires every employer with employees to secure workers' compensation, either through an insurance policy or, for large employers, a certificate to self-insure. Going without is a misdemeanor under section 3700.5, punishable by up to a year in county jail and a fine of at least $10,000. When the state issues a stop order, section 3722 adds a $1,500 penalty for each employee.
What coverage costs in 2026
The WCIRB's approved advisory pure premium rates average $1.65 per $100 of payroll for policies starting on or after September 1, 2026. Rates vary enormously by class: clerical staff (8810) are $0.214 per $100, home care aides (8827) are $2.794 and residential care facilities (9070) are $5.213. Insurers add their own expenses, so quoted rates run higher than these benchmarks.
How we help California employers
- Classify every employee correctly, including splitting office payroll into 8810
- Compare private carriers, and the State Compensation Insurance Fund where it makes sense
- Set up pay-as-you-go billing to avoid large deposits
- Prepare you for the annual premium audit so the final bill matches the estimate
Frequently asked questions
Is workers' comp required in California with one employee?
Yes. Labor Code section 3700 requires every employer with employees to carry workers' compensation.
How much does workers' comp cost in California?
It depends on payroll and class code. The 2026 average advisory rate is $1.65 per $100 of payroll, ranging from $0.214 for clerical staff to over $20 for some roofing work. Search every class on our California class code page.
What happens if I'm caught without coverage?
The state can issue a stop order with a $1,500 penalty per employee, and failing to insure is a misdemeanor with a minimum $10,000 fine. You're also personally liable for injured workers' benefits.
Sources: California Labor Code sections 3700, 3700.5 and 3722; WCIRB, Approved September 1, 2026 Pure Premium Rates.
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