Workers’ Comp Insurance in California: Costs and Rules for Small Employers

The day you hire your first employee in San Diego, you take on a legal duty many new owners do not know about until an inspector or an injured worker points it out. Workers comp insurance in California is not optional, and it is not only for big companies. It applies to a two-person taco shop in Barrio Logan, a landscaping crew in Escondido, and a family in Carmel Valley paying a full-time nanny.

This guide explains who has to carry coverage, what it pays for, how premiums are calculated, what 2026 rates look like, and what happens if you go without. It includes worked examples with realistic San Diego payrolls. All figures are based on publicly available information as of September 22, 2026, and rates, rules and deadlines can change. Check the linked sources before you rely on any number.

Quick Answer
California requires almost every employer with even one employee to carry workers’ compensation insurance or be approved to self-insure. Premiums are charged per $100 of payroll and depend mainly on each worker’s job classification, the insurer’s filed rates and, for larger accounts, your claims history. The state’s advisory benchmark for policies starting on or after September 1, 2026 averages $1.65 per $100 of payroll, but real rates range from pennies for office staff to more than $20 for some roofing work. Going uninsured can bring criminal charges, stop orders and penalties of up to $100,000.

Who Needs Workers Comp Insurance in California?

The one-employee rule

The Division of Workers’ Compensation (DWC) states plainly that California employers must have workers’ compensation insurance even if they have only one employee. The legal basis is Labor Code Section 3700, which the DWC summarizes as requiring any business with one or more employees to satisfy the law.

There is no part-time exemption and no grace period for a trial month. If someone works for you and qualifies as an employee under California law, the requirement applies from their first shift.

Owners, partners and corporate officers

A sole proprietor with no employees is generally not required to cover themselves. According to the DWC, a sole proprietor can buy a policy that covers only themselves, but the inclusion must be stated in the policy or added by endorsement. The DWC also notes that health, life or disability income insurance can be a workable alternative for some owners.

Corporations are different. The DWC says executive officers and directors must be included in coverage unless the corporation is fully owned by its directors and officers. In that case, they may elect to be excluded. Many small corporations in this position discuss the choice with a licensed commercial broker, since excluding yourself saves premium but leaves you without work-injury benefits.

Ways to meet the requirement

The DWC lists three routes: buy a policy from a licensed insurance company, buy from the State Compensation Insurance Fund (State Fund), or get state approval to self-insure. State Fund competes with private carriers and also acts as the insurer of last resort when private companies decline to offer coverage.

Route	Who it tends to fit	Key trade-offs
Private licensed insurer	Most small and mid-size employers	Prices vary by carrier; some have minimum premiums or prefer certain industries
State Compensation Insurance Fund	Employers of any size, including those turned down elsewhere	Non-profit, state-operated; still priced on class code and payroll
Self-insurance (individual)	Large, financially strong employers	DWC cites at least $5 million net worth, $500,000 annual net income and a security deposit
Group self-insurance	Small employers in the same industry pooling risk	Requires state approval; members share liabilities
PEO or staffing arrangement	Owners who want payroll and HR outsourced	Coverage flows through the PEO’s policy; you still need proof it applies to your workers

What a Workers’ Comp Policy Pays For

Benefits for the injured worker

The DWC describes the system as a trade-off. Employees get prompt medical treatment for work injuries regardless of fault, and in return they generally cannot sue the employer over those injuries. The benefits include medical care, temporary disability, permanent disability, supplemental job displacement benefits, a return-to-work supplement and death benefits.

Temporary disability is usually two-thirds of the worker’s lost pre-tax wages, within state limits. For injuries in 2026, the DWC set the minimum weekly temporary total disability rate at $264.61 and the maximum at $1,764.11, up from $252.03 and $1,680.29 in 2025. The increase tracks the rise in California’s State Average Weekly Wage, which the DWC calculated at 4.98826%.

What it does for you as the owner

The policy pays those benefits so you do not have to. It also preserves the “exclusive remedy” protection. The DWC warns that if you are illegally uninsured, an injured employee can file a civil lawsuit against you in addition to a workers’ comp claim.

Coverage also sets up the claims machinery: a claims administrator, utilization review of treatment requests, and often a Medical Provider Network. For a small business owner with no HR department, that support can matter as much as the money.

Your duties when someone gets hurt

The DWC’s employer FAQ lists what you must do after a work injury is reported:

• Give the employee a claim form within one working day.
• Return a copy of the completed form within one working day of receiving it.
• Send the claim form and your injury report to the claims administrator within one working day.
• Authorize up to $10,000 in appropriate medical treatment within one working day of receiving the claim.
• Offer transitional or light-duty work where appropriate.

Missing these steps can create penalties and disputes even when you are fully insured, so many owners keep a printed checklist near the time clock.

How Workers’ Comp Premiums Are Calculated in California

The basic formula

According to the WCIRB, the premium starts with your insurer’s rate for each of your job classifications, multiplied by the payroll in that classification. Rates are expressed per $100 of payroll. A rate of $4.90 means $4.90 of premium for every $100 you pay in wages.

In simple form:

(Payroll ÷ 100) × insurer’s class rate × experience mod ± rating-plan credits or debits = estimated premium

The DWC names the main inputs as your industry classification, your experience modification, your payroll, any special underwriting adjustments and any group or dividend programs you qualify for.

Pure premium vs. what insurers charge

California uses “open rating.” The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) proposes advisory pure premium rates, and the Insurance Commissioner approves them. These rates reflect expected claim costs and claim-handling expenses only.

The California Department of Insurance (CDI) states that the adopted rate is advisory and that insurers are free to set their own rates. Each carrier adds its own loading for overhead, commissions, taxes and profit, then files its rates with the CDI.

Bright Coast Insurance, a broker that publishes WCIRB pure premium rates by class, describes carrier expense loading as typically 25% to 50% above pure premium. Treat that as a rough broker estimate, not a rule. Some carriers price below the benchmark, as the market-wide figures later in this guide show.

Why your class code matters most

The spread between classifications is enormous. The table below shows pure premium rates for policies effective September 1, 2026, as published by Bright Coast Insurance from WCIRB data. Confirm any code you rely on with the WCIRB’s free Classification Search.

Class code	Description	Pure premium per $100 of payroll (Sept. 1, 2026)
8810	Clerical office employees	$0.214
8742	Outside salespersons	$0.337
4297	Electronic pre-press; graphic design	$0.24
2121	Breweries	$2.86
0042	Landscape gardening	$5.58
5432	Carpentry, high wage	$5.32
5403	Carpentry, low wage	$12.07
5552	Roofing, low wage	$20.83

The carpentry codes show another California quirk. Some construction trades are split into “low wage” and “high wage” classes based on an hourly pay threshold. A worker paid just under the line can land in a code that costs more than twice as much.

The experience modification (X-Mod)

Once a business is large enough, the WCIRB calculates an experience modification that compares its claims history with similar employers. A mod of 1.00 is average. A mod below 1.00 lowers the premium, and a mod above 1.00 raises it.

Very small employers often do not qualify for a mod at all because they fall below the WCIRB’s eligibility threshold, which changes each year. For them, the class rate and the insurer’s rating plan do most of the work.

Schedule credits and rating plans

The CDI explains that the base rates insurers file can be adjusted through rating plans. These can add surcharges for new businesses or poor loss history, or give credits for good safety records and procedures. That is why two quotes for the same class code can differ even from the same carrier.

What 2026 Rates Look Like, and Why Published Numbers Disagree

The September 1, 2026 benchmark

On July 10, 2026, the CDI announced an average advisory pure premium rate of $1.65 per $100 of payroll. That is a 6.6% increase over the 2025 approved rate. The CDI said the decision matched its own actuaries’ analysis and was below the 10.4% increase the WCIRB had requested.

Workers’ Comp Executive, a California trade publication, reported that this follows an 8.7% increase approved in 2025. That was the first increase in a decade. The same report said employers and organized labor had suggested a 4.8% increase.

Why one headline says 10.4%

If you search this topic, you may see a July 2026 Insurance Journal headline saying the Commissioner approved a 10.4% increase. The body of that article describes the WCIRB’s proposal as 10.4%. It then gives the approved average as $1.65 per $100 of payroll.

The official CDI release is clear that 10.4% was the request and 6.6% was the approved change. The headline appears to have merged the two numbers.

The benchmark vs. what employers actually pay

A third figure causes more confusion. Measured Risk Insurance, a California broker, reported that the average rate insurers actually charged in 2025 was $1.56 per $100 of payroll, down slightly from $1.58 in 2024. That is below the new benchmark. The CDI release also notes that insurers’ charged rates have stayed low even as claim costs rise.

A fourth figure comes from Bright Coast Insurance, which lists an “average rate” of $2.15 across the California codes it publishes. That number is not wrong so much as calculated differently. It appears to be a simple average across class codes. The official $1.65 is weighted by how much payroll sits in each code, and most California payroll sits in low-rated office codes.

Figure	Source	What it measures	Why it differs
$1.65 per $100 (+6.6%)	California Department of Insurance	Approved average advisory pure premium, Sept. 1, 2026	Official benchmark, weighted by payroll; excludes insurer overhead
10.4% increase	WCIRB proposal, reported by CDI and trade press	What the rating bureau requested	Different loss-development and trend assumptions
4.8% increase	Employer and labor actuary, per Workers’ Comp Executive	Alternative recommendation	Different actuarial assumptions
$1.56 per $100 (2025)	Measured Risk Insurance, citing industry data	Average rate insurers actually charged	Reflects competitive pricing; insurers can charge below benchmark
$2.15 per $100	Bright Coast Insurance	Simple average across listed class codes	Not weighted by payroll, so high-risk codes pull it up

The practical takeaway is that no statewide average predicts your bill. Your class codes, payroll and insurer drive the number.

What is pushing costs up

The CDI pointed to higher medical treatment and medical-legal costs, more projected cumulative trauma claims, and rising claim-handling costs. Measured Risk Insurance, summarizing WCIRB data, reported that cumulative trauma claims made up about 26.4% of claims filed in 2025, compared with 15% in 2021.

Worked Examples: What San Diego Employers Might Pay

These are illustrations, not quotes. They use the Sept. 1, 2026 pure premium rates above and apply the 25% to 50% loading range Bright Coast Insurance describes. Your actual premium will depend on the insurer, your rating plan and any minimum premium.

Example 1: A three-person landscaping crew in Clairemont

Maria runs a landscape maintenance company based in Clairemont (92117) with three full-time crew members. She pays each $22 an hour, above the City of San Diego’s 2026 minimum wage of $17.75. Each works about 2,080 hours a year.

• Annual crew payroll: 3 × $22 × 2,080 = $137,280
• Code 0042 pure premium: $5.58 per $100
• Pure premium cost: ($137,280 ÷ 100) × $5.58 = $7,660
• With a 25% insurer loading: about $9,575
• With a 50% insurer loading: about $11,490

Now suppose her business qualifies for an experience mod. If a bad back injury pushed her mod to 1.20, the low-end estimate would climb to roughly $11,490. A clean history producing a 0.85 mod would bring it down to about $8,139. That is a gap of more than $3,300 a year on identical payroll.

If one of her workers were hurt and off work, their weekly temporary disability would be about two-thirds of $880, or roughly $587 a week. That falls well inside 2026’s state minimum and maximum.

Example 2: A four-person design studio in North Park

James owns a small graphic design and marketing studio in North Park (92104). He has four employees averaging $30 an hour, all doing office and computer work.

• Annual payroll: 4 × $30 × 2,080 = $249,600
• If all four fall under code 8810 (clerical) at $0.214: ($249,600 ÷ 100) × $0.214 = $534
• With 25% to 50% loading: roughly $668 to $801

In practice, a business this size may pay more than the formula suggests. The CDI notes that some insurers set minimum premium sizes, and a policy minimum can exceed the calculated amount. Classification also matters. Designers may belong in code 4297 rather than 8810, so James would want the correct code confirmed before comparing quotes.

The contrast between the two examples is the whole story of California workers’ comp pricing. James pays about 15 times less on nearly twice the payroll, because his workers sit at desks instead of running mowers on hillsides.

California and San Diego Rules Small Employers Miss

San Diego’s higher minimum wage raises the base

Premiums are a percentage of payroll, so wage floors matter. The City of San Diego raised its minimum wage to $17.75 an hour on January 1, 2026, above the statewide $16.90. It applies to employees who work at least two hours in a week inside city limits.

Employers in Chula Vista, El Cajon or other parts of the county may follow the state rate unless a local ordinance applies. When you estimate payroll for a quote, use the right floor for where the work happens.

The hospitality wage ordinance

San Diego’s tourism economy adds another layer. According to employment law firm Constangy, a city ordinance effective July 1, 2026 sets a $19.00 minimum at covered hotels and amusement parks and $21.06 at covered event centers. It phases up to $25.00 by 2030.

Covered venues named in that analysis include Petco Park, the San Diego Convention Center, SeaWorld San Diego and Belmont Park, along with hotels of 150 or more rooms. If your business staffs events or supplies workers to these venues, rising payroll will raise your comp premium at the next audit.

Household employees: nannies, caregivers and housekeepers

Many San Diego households are employers without realizing it. California requires homeowners policies with comprehensive personal liability coverage to include workers’ compensation for residential employees, under Insurance Code Section 11590. Labor Code Section 3352 excludes workers who, in the 90 days before an injury, worked fewer than 52 hours or earned less than $100.

Sources do not agree on what that means for a full-time nanny. Falcon West, a San Diego broker, says the built-in coverage is meant for occasional help. It says families with full-time staff usually need an endorsement or a separate policy. By contrast, a California appellate decision quoted by WorkCompCentral said the Legislature requires homeowners policies to cover residential employees as defined in the Labor Code. The court treated that as the mechanism for covering household workers.

The honest answer is that it depends on your specific homeowners policy wording and your insurer. A family in Carmel Valley paying a nanny $25 an hour for 40 hours a week crosses the 52-hour line in about a week and a half. Many families in this situation ask their homeowners insurer in writing how a full-time household employee is covered.

Remote and cross-border workers

The DWC notes that out-of-state employers may need California coverage if they have employees regularly working here or sign employment contracts here. San Diego businesses with staff who live in Tijuana, or who send workers into Arizona or Nevada for jobs, often ask their broker how the policy handles work outside California.

Contractors and the CSLB

Construction is where the rules are strictest. The Contractors State License Board (CSLB) requires active licensees to file either a certificate of workers’ compensation insurance or a signed exemption stating they have no employees. The CSLB says licenses are suspended if coverage lapses, and any work done during suspension counts as unlicensed.

Certain trades cannot use the exemption at all. The CSLB lists C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement, C-39 Roofing and C-61/D-49 Tree Service as required to carry coverage whether or not they have employees.

You may have read that all contractors must carry workers’ comp starting January 1, 2026. That was the original date under SB 216. A November 2024 CSLB meeting packet explains that SB 1455 pushed the all-licensee requirement to January 1, 2028. SB 1455 also directed the CSLB to build a process for verifying no-employee exemptions. Contractors should check the CSLB website directly for current status, since this area has changed more than once.

Independent Contractors, AB 5 and Misclassification

The ABC test

Calling someone a 1099 contractor does not settle the question. Under AB 5, California’s Labor and Workforce Development Agency explains that a worker is an employee unless the hiring business proves all three parts of the ABC test:

• A: The worker is free from your control and direction in how the work is done, both on paper and in practice.
• B: The work is outside the usual course of your business.
• C: The worker is customarily engaged in an independent trade or business of the same kind.

Prong B catches many small businesses. A landscaping company that “subcontracts” mowing to individuals is hiring people to do its core business. Those workers will likely be treated as employees.

Why it matters for your premium

Workers’ comp is billed on employee payroll. When an insurer’s year-end audit finds that “contractors” were really employees, it can add their pay to your payroll and bill you back premium.

If a misclassified worker is hurt, you may face an uninsured claim. The LWDA adds that willful misclassification carries civil penalties of $5,000 to $25,000 per violation under Labor Code Section 226.8.

Uninsured subcontractors

Many policies charge premium for payroll paid to uninsured subcontractors. Collecting a current certificate of insurance from every subcontractor before they start is one of the simplest ways to avoid a surprise at audit.

What Happens If You Go Without Coverage

Criminal, civil and administrative penalties

Being uninsured is expensive in several ways at once. The DWC’s employer FAQ lists the consequences below.

Consequence	What the DWC says
Criminal charge	Misdemeanor under Labor Code 3700.5, with up to one year in county jail, a fine, or both
Stop order	Labor Commissioner can bar use of employee labor until coverage is obtained; ignoring it is a misdemeanor with up to 60 days in jail, up to a $10,000 fine, or both
Uninsured penalty	Greater of twice the premium you would have paid while uninsured, or $1,500 per employee during that period
Penalty after a claim	$10,000 per employee for a compensable claim, or $2,000 per employee for a non-compensable one, up to $100,000
Personal liability	You pay all injury costs, and the employee can also sue you in civil court
Posting violation	Failing to post the required notice can bring a civil penalty of up to $7,000 per violation

The DWC’s own FAQ describes the Labor Code 3700.5 fine two different ways. One passage says a fine of “not less than $10,000.” A later passage on the same page says “up to $10,000.” Anyone facing this charge would want an attorney to read the current statute rather than rely on a summary.

The Uninsured Employers Benefits Trust Fund

When an uninsured employer does not pay, the state’s Uninsured Employers Benefits Trust Fund may pay the injured worker. The DWC says the fund then pursues reimbursement from the employer through all available avenues, including liens on property.

To put it in San Diego terms: if Maria’s three-person crew went a year without coverage, the $1,500-per-employee penalty alone would be $4,500. Twice her likely premium would be much higher, probably close to $20,000. That is before any injury costs.

How to Buy Coverage: A Step-by-Step Guide

Step 1: Get your classifications right

List every job in your business and what each person actually does. Use the WCIRB’s Classification Search to see which codes might apply. Mixed roles, such as an office manager who also delivers product, are where most errors start.

Step 2: Estimate payroll honestly

Insurers quote on estimated payroll and then audit actual payroll after the policy year. Underestimating lowers the upfront price but creates a bill at audit. Include overtime and bonuses, and use the correct local minimum wage.

Step 3: Compare filed rates

The CDI publishes a free workers’ compensation rate comparison of the 50 largest insurers’ manual base rates by class code. The CDI notes these are not quotes. Rating plans and experience mods can change the final price, and some insurers have eligibility rules such as minimum premium size. Still, it shows which carriers are generally cheaper for your code.

Step 4: Request quotes

You can contact insurers directly, use State Fund, or work with a licensed commercial broker who can shop several markets. The CDI suggests checking any broker’s license and disciplinary record on its website. It also suggests checking insurers’ financial strength ratings.

The CDI also suggests asking about discounts for safety groups, trade associations, schedule rating credits, premium discounts and preferred providers.

Step 5: Set up compliance before the first shift

Once bound, post the required “Notice to Employees” in a visible spot. Give new hires the workers’ comp pamphlet the DWC requires. Keep claim forms handy. Contractors must also file the certificate with the CSLB, with the CSLB listed as certificate holder.

Step 6: Plan for the audit

Keep clean payroll records by employee and by job duty. If an employee splits time between two codes, some insurers will only split payroll if your records support it. Good records can move payroll into a cheaper class legitimately.

Common Mistakes and Ways to Keep Costs Down

Mistakes that cost San Diego employers money

Assuming a PEO covers everything. The CSLB publishes separate guidance for PEOs and leasing companies. Coverage can depend on which workers are leased and how certificates are issued. Confirm in writing that every worker is included.

Letting coverage lapse between policies. For contractors, a lapse suspends the license. For everyone else, even a few uninsured days can bring penalties.

Switching insurers mid-term without checking penalties. The CDI warns that cancelling mid-term can trigger a short-rate cancellation penalty. It says switching at renewal may be better when the savings are small.

Asking employees to chip in. The DWC is clear that employers cannot ask employees to help pay the premium.

Ignoring small injuries. A strain that is not reported and treated early can become a larger claim. The rise in cumulative trauma claims shows how slow-building injuries drive costs.

Legitimate ways to lower premiums

A written safety program and training can support schedule credits with many carriers. Cal/OSHA also requires most employers to keep an Injury and Illness Prevention Program. Fast reporting and a return-to-work plan with modified duty can shorten claims, which protects your future experience mod.

Reviewing class codes every renewal catches jobs that have changed. For construction trades, paying above the dual-wage threshold may move a worker into a lower-rated class. That is worth modelling with a broker, since the thresholds change.

Trade association and safety group programs sometimes pay dividends or offer group rates. Many owners also compare the CDI rate comparison against their current carrier each year before renewal.

Frequently Asked Questions

Do I need workers’ comp if I only have one part-time employee in California?

Yes. The DWC states that California employers must carry workers’ compensation even with only one employee, and there is no exemption for part-time work. A single part-time barista or receptionist counts. The premium for low-risk, low-payroll jobs can be modest, but some insurers apply a minimum premium. The rule applies from the employee’s first day of work.

How much does workers’ comp cost in California in 2026?

It depends mostly on class code and payroll. The state’s approved advisory benchmark for policies from September 1, 2026 averages $1.65 per $100 of payroll. Individual codes range from about $0.21 for clerical work to over $20 for low-wage roofing. Insurers add their own expense loading, and experience mods and rating plans raise or lower the final price.

Is workers’ comp required for independent contractors in California?

Not for genuine independent contractors, but California’s ABC test makes that status hard to prove. A worker is presumed to be an employee unless all three ABC conditions are met, including doing work outside your usual business. If a “contractor” is really an employee, you need coverage for them. Willful misclassification can bring penalties of $5,000 to $25,000 per violation.

Do sole proprietors need workers’ comp in California?

A sole proprietor with no employees generally does not have to cover themselves. The DWC notes an owner can buy coverage for themselves by stating it on the policy or adding an endorsement. Some licensed contractors are the exception. Certain CSLB license classes, including roofing, concrete, HVAC, asbestos abatement and tree service, must carry coverage even with no employees.

What is the penalty for not having workers’ comp in California?

Several penalties can stack up. Being uninsured is a misdemeanor that can bring jail time and fines. The Labor Commissioner can issue a stop order and assess the greater of twice the missed premium or $1,500 per employee. If an employee files a claim, added penalties can reach $100,000. You are also personally liable for injury costs and can be sued directly.

Does my homeowners insurance cover my nanny or housekeeper?

Possibly, but check your policy. California requires homeowners policies with personal liability coverage to include workers’ comp for residential employees. Workers under 52 hours or $100 in 90 days are excluded. Sources disagree on whether that built-in coverage is enough for full-time household staff. Some San Diego brokers recommend an endorsement or separate policy, so many families ask their insurer in writing.

What is an experience mod and how does it affect my premium?

An experience modification compares your business’s claims history with similar employers. A mod of 1.00 is average. Below 1.00 lowers your premium, and above 1.00 raises it. Very small employers often do not qualify for a mod, depending on the WCIRB’s annual eligibility threshold. For those that do, one serious claim can raise premiums for several years.

Do California contractors need workers’ comp starting in 2026?

The original SB 216 date of January 1, 2026 for all licensed contractors was pushed back. According to CSLB materials, SB 1455 moved the all-licensee requirement to January 1, 2028. Until then, contractors with no employees can generally file an exemption. That does not apply to concrete, HVAC, asbestos, roofing or tree service licensees, who must already carry coverage.

Can I get workers’ comp if private insurers turn me down?

Yes. The State Compensation Insurance Fund competes with private insurers and also serves as the insurer of last resort when private companies will not offer coverage. Businesses in high-risk trades, new businesses and those with claims history often end up there or in specialty markets. A licensed commercial broker can usually explain which markets write your class code.

How is workers’ comp premium calculated in California?

Your insurer’s rate for each class code is applied per $100 of payroll in that code. So $100,000 of payroll at a $3.00 rate produces $3,000 before adjustments. The insurer then applies your experience mod, if you have one, plus any rating-plan credits or debits. After the policy year, an audit compares actual payroll to the estimate and adjusts the bill.

Conclusion

Workers comp insurance in California is a legal requirement from your first hire, and the cost varies more by job type than by almost anything else. A San Diego office might pay a few hundred dollars a year. A landscaping or roofing crew can pay many thousands. The 2026 benchmark rose 6.6%, but your own bill depends on correct class codes, accurate payroll, your insurer’s filed rates and your claims history.

A practical next step is to list each role in your business and look up likely codes in the WCIRB’s Classification Search. Then check the CDI’s rate comparison to see which insurers are competitive for those codes. With that in hand, a licensed commercial broker or insurer can give you real quotes and tell you which rules apply to your situation.

Sources

1. California Department of Insurance, “Commissioner Lara takes action to maintain stable workers’ compensation market amid rising costs” (press release, July 10, 2026), https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release024-2026.cfm, accessed September 22, 2026.
2. California Department of Insurance, “Workers’ Compensation Rate Comparison,” https://www.insurance.ca.gov/01-consumers/105-type/9-compare-prem/wc-rate/, accessed September 22, 2026.
3. California Department of Industrial Relations, Division of Workers’ Compensation, “Answers to frequently asked questions about workers’ compensation for employers,” https://www.dir.ca.gov/dwc/faqs.html, accessed September 22, 2026.
4. California Department of Industrial Relations, Division of Workers’ Compensation, “Employer information,” https://www.dir.ca.gov/dwc/employer.htm, accessed September 22, 2026.
5. California Department of Industrial Relations, “DWC announces temporary total disability rates for 2026” (Newsline 2025-116, November 21, 2025), https://dir.ca.gov/DIRNews/2025/2025-116.html, accessed September 22, 2026.
6. Contractors State License Board, “Workers’ Compensation Requirements,” https://www.cslb.ca.gov/Contractors/Maintain_License/workers_compensation.aspx, accessed September 22, 2026.
7. Contractors State License Board, “Workers’ Compensation Insurance Stakeholder Meeting” agenda and packet (November 19, 2024), https://cslb.ca.gov/Resources/StakeholderAgendas/2024/WC_Stakeholder_Meeting_Agenda,_Packet_Nov_2024.pdf, accessed September 22, 2026.
8. California Labor and Workforce Development Agency, “Employer Resources” (AB 5 and the ABC test), https://www.labor.ca.gov/employmentstatus/employers/, accessed September 22, 2026.
9. City of San Diego, “City of San Diego Hourly Minimum Wage Will Increase to $17.75 Effective Jan. 1, 2026” (press release, December 31, 2025), https://www.sandiego.gov/sites/default/files/2025-12/2025-12-31-city-of-san-diego-hourly-minimum-wage-will-increase-to-17.75-effective-jan-1-2026.pdf, accessed September 22, 2026.
10. Constangy, Brooks, Smith & Prophete, “San diego minimum wage updates for 2026” (January 6, 2026), https://www.constangy.com/newsroom/newsletters/san-diego-minimum-wage-updates-for-2026, accessed September 22, 2026.
11. Insurance Journal, “California Insurance Commissioner OKs Upping Workers’ Comp Pure Premium 10.4%” (July 13, 2026), https://www.insurancejournal.com/news/west/2026/07/13/877149.htm, accessed September 22, 2026.
12. Workers’ Comp Executive, “Flash Report: Workers’ Comp Rate Hike” (July 13, 2026), https://www.wcexec.com/flash-report/workers-comp-rate-hike/, accessed September 22, 2026.
13. Measured Risk Insurance, “Insurance Commissioner Approves Workers’ Comp Rate Hike” (August 2026), https://measuredriskinsurance.com/blog/insurance-commissioner-approves-workers-comp-rate-hike/, accessed September 22, 2026.
14. Bright Coast Insurance, “California Workers Comp Class Codes & Rates,” https://brightcoastins.com/workers-comp-codes/ca, accessed September 22, 2026.
15. Falcon West Insurance Brokers, “Workers Comp for Nannies in California,” https://falconwest.com/work-comp-for-household-employees/, accessed September 22, 2026.
16. WorkCompCentral, “Household Employees and Section 3351” (March 25, 2006), https://www.workcompcentral.com/news/article/id/f82e06q1351874tu10w22n, accessed September 22, 2026.

Disclaimer

Disclaimer: This article is for general information and educational purposes only. It is based on publicly available information believed to be accurate at the time of writing, and rates, rules, products and eligibility requirements change frequently. It is not financial, insurance, tax or legal advice, and no advisor-client relationship is created by reading it. We are not licensed financial advisors, insurance agents, tax preparers or attorneys, and nothing here is a recommendation to buy, sell or hold any product, policy or security. Your own situation is different from the examples used here, so please consult a licensed financial advisor, insurance agent, tax professional or attorney before making any decision. We make no warranty as to the accuracy or completeness of the information and accept no liability for any loss arising from its use. Some links may be to third-party sites we do not control.

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• Homeowners insurance in San Diego, including coverage for household employees (anchor: “homeowners insurance San Diego”)
• Best Health Insurance for Self-Employed and Gig Workers in California (anchor: “self employed health insurance California”)
• CalSavers Explained: Retirement Savings for California Workers Without a 401(k) (anchor: “CalSavers for employers”)
• Commercial auto insurance for San Diego contractors and service businesses (anchor: “commercial auto insurance San Diego”)

External Authoritative Links

• California Division of Workers’ Compensation, Employer FAQs: https://www.dir.ca.gov/dwc/faqs.html
• California Department of Insurance, Workers’ Compensation Rate Comparison: https://www.insurance.ca.gov/01-consumers/105-type/9-compare-prem/wc-rate/
• Contractors State License Board, Workers’ Compensation Requirements: https://www.cslb.ca.gov/Contractors/Maintain_License/workers_compensation.aspx