Workers Comp Rates in California (CA)
The average workers' compensation rate in California is $1.45 per $100 of payroll , effective as of 2025-01-01. This is $0.26 (21.9%) above the national average of $1.19 per $100. California has a competitive insurance market where employers can purchase workers' comp from private insurers. California has the largest workers' compensation market in the US. All employers must carry coverage from the first employee. Rates are above the national average due to high benefit levels and litigious environment.
Workers Comp Requirements in California
Workers Comp Rates by City in California
The table below shows average workers' compensation rates for 8 cities in California, sorted by rate from highest to lowest. Rates range from $1.35/$100 in San Jose to $1.60/$100 in Bakersfield. Actual rates depend on your industry class code and claims history.
| City | Rate/$100 | Est. Cost ($250K) | vs. State Avg | vs. National Avg | Notes |
|---|---|---|---|---|---|
| Bakersfield | $1.60 | $4,000 | +$0.15 | +$0.41 | Oil/agriculture |
| Fresno | $1.55 | $3,875 | +$0.10 | +$0.36 | Agricultural region |
| Los Angeles | $1.52 | $3,800 | +$0.07 | +$0.33 | Largest city in CA |
| Oakland | $1.48 | $3,700 | +$0.03 | +$0.29 | -- |
| Sacramento | $1.42 | $3,550 | -$0.03 | +$0.23 | State capital |
| San Diego | $1.40 | $3,500 | -$0.05 | +$0.21 | -- |
| San Francisco | $1.38 | $3,450 | -$0.07 | +$0.19 | Tech/office-heavy economy |
| San Jose | $1.35 | $3,375 | -$0.10 | +$0.16 | Silicon Valley |
How California Compares to Other States
Below is a comparison of California with five states that have similar workers' compensation rates. This comparison helps illustrate where California stands nationally in terms of workers' comp costs and requirements.
| State | Rate/$100 | Type | Min Employees | Waiting Period | Est. Cost ($250K) |
|---|---|---|---|---|---|
| California (CA) | $1.45 | Competitive | 1+ | 3 days | $3,625 |
| Rhode Island (RI) | $1.42 | Competitive | 1+ | 3 days | $3,550 |
| Florida (FL) | $1.40 | Competitive | 4+ | 7 days | $3,500 |
| Washington (WA) | $1.40 | Monopolistic | 1+ | 3 days | $3,500 |
| New Jersey (NJ) | $1.38 | Competitive | 1+ | 7 days | $3,450 |
| District of Columbia (DC) | $1.35 | Competitive | 1+ | 3 days | $3,375 |
Workers Comp Cost Examples for California
The following table shows estimated annual workers' compensation costs for various payroll sizes in California using the state average rate of $1.45 per $100 of payroll. Actual costs depend on your industry class code and experience modifier.
| Annual Payroll | Est. Annual Premium | Est. Monthly Cost |
|---|---|---|
| $50,000 | $725 | $60 |
| $100,000 | $1,450 | $121 |
| $250,000 | $3,625 | $302 |
| $500,000 | $7,250 | $604 |
| $1,000,000 | $14,500 | $1,208 |
| $2,500,000 | $36,250 | $3,021 |
Frequently Asked Questions About Workers Comp in California
How much does workers comp cost in California?
The average workers' compensation rate in California is $1.45 per $100 of payroll. For an employer with $250,000 in annual payroll, that works out to approximately $3,625 per year. However, actual rates vary significantly by industry. Office workers may pay as little as $0.20/$100 while high-risk industries like construction or logging can exceed $10/$100.
Is workers comp required in California?
Yes. California requires workers' compensation for employers with 1 or more employees. The following are exempt: Sole proprietors (may opt in), certain corporate officers. Penalties for noncompliance include: Misdemeanor, up to $10,000 fine and/or 1 year imprisonment, penalty of $100,000 against illegally uninsured employers.
Where can I buy workers comp in California?
California has a competitive workers' compensation market. You can purchase coverage from any licensed private insurance company, through an insurance agent or broker, or in some cases through a state-sponsored program. Shopping multiple carriers is recommended to find the best rate for your industry and claims history.
What is the waiting period for workers comp in California?
The waiting period in California is 3 days. This means an injured worker must wait 3 days before receiving wage replacement benefits. Medical benefits typically begin immediately. If the disability extends beyond a certain number of days (usually 14-21 depending on the state), the waiting period benefits are paid retroactively. The maximum weekly benefit in California is $1,619.
Estimate Your Workers Comp Cost
Use our workers comp cost calculator to estimate your premium based on your specific payroll in California, or browse all 50 states to compare workers' comp rates across the country. Remember that actual rates depend on your industry classification, claims history, and experience modification rate.