California Workers' Compensation Cost Calculator
Key facts: workers' comp in California
- Who must be covered
- Mandatory starting at 1 employeeOfficial agency: DWC
- Average rate
- $1.86 per $100 of payrollRank #4 of 51 (#1 = most expensive), above the $1.09 national median
- Rating organization
- WCIRBWorkers' Compensation Insurance Rating Bureau of California (WCIRB) · independent rating bureau · Private insurers and a state-created carrier
- Verified from official records
- October 3, 2026Rates: Oregon DCBS study, June 2025
California requires workers' comp even with a single employee. Every employer except the state must secure it, either through an insurer authorized to write it in California (the State Compensation Insurance Fund is one) or with a certificate of consent to self-insure.
Rates in effect September 1, 2023 · Oregon Department of Consumer and Business Services, 2024 study (June 2025) · Nothing you enter leaves your browser
2024 study rate for all industries in California. Edit it if your policy shows a different rate.
For the class you're pricing. Insurers rate each class code's payroll separately.
Printed on your experience rating worksheet or renewal. New or small employers that don't qualify for experience rating are rated at 1.00.
Estimated premium
$18,600
per year at an EMR of 1.00
At an average mod
$18,600
per year at an EMR of 1.00
Your EMR's impact
$0
no adjustment
Effective cost: $1.86 per $100 of payroll.
At an EMR of 1.00, your claims history neither raises nor lowers this premium.
Every claim from now on counts toward your next three renewals. IncidentLog makes the first step — a complete, same-day incident report — take about 90 seconds from a job-site QR code.
Create a free accountEstimate before schedule credits or debits, premium discounts, expense constants, state assessments and minimum premiums — your insurer's quote will differ.
Who must carry workers' comp in California?
Mandatory starting at 1 employee
Official agency
California Division of Workers' Compensation (DWC)
Market: Private insurers and a state-created carrier · Law: Cal. Lab. Code § 3700
California workers' comp rates by business type
Rate per $100 of payroll for common class codes in California, against the median of the 51 jurisdictions in the study.
| Business type (NCCI code) | California | U.S. median | Difference |
|---|---|---|---|
| Office and clerical staff (8810) | $0.24 | $0.11 | +118% |
| Retail store (8017) | $3.05 | $1.20 | +154% |
| Restaurant (full service) (9082) | $3.11 | $1.09 | +185% |
| Restaurant (fast food) (9083) | $3.11 | $1.09 | +185% |
| Hotel (all other employees) (9052) | $7.18 | $1.79 | +301% |
| Assisted living / retirement center (care staff) (8824) | $3.44 | $2.03 | +69% |
| Hospital (professional staff) (8833) | $1.62 | $0.82 | +98% |
| Electrical contractor (5190) | $2.78 | $2.37 | +17% |
| Plumbing contractor (5183) | $4.17 | $2.70 | +54% |
| Residential carpentry (up to 3 stories) (5645) | $8.41 | $8.71 | −3% |
| Roofing (5551) | $15.68 | $9.64 | +63% |
| Trucking (7219) | $7.94 | $5.72 | +39% |
California doesn't use NCCI class codes; the study maps each class to the closest California equivalent. Your insurer applies the rate for your own classes, then your EMR.
What a bad EMR costs in California
Take $500,000 of payroll at California's $1.86 index rate: $9,300 a year at an average mod of 1.00.
- EMR 0.85
- $7,905/yr
- EMR 1.25
- $11,625/yr
- Difference
- +$3,720/yr
A claim year usually stays in the mod for three renewals, so the gap adds up to about $11,160. The mod is built from claims, and the cheapest claim is the injury caught early.
IncidentLog lets crews report an injury or near miss from a job-site QR code in about 90 seconds, so you hear about it the same shift and see patterns on your OSHA 300 log before they become claims.
Create a free accountCalifornia workers' comp FAQ
Is workers' comp insurance mandatory in California?
Yes. California requires workers' compensation coverage from the first employee (Cal. Lab. Code § 3700). Source: California Division of Workers' Compensation.
How are workers' comp rates set in California?
Employers can buy coverage from private insurers or from a carrier created by the state that competes with them. California doesn't use NCCI: the Oregon DCBS study lists an independent bureau, the Workers' Compensation Insurance Rating Bureau of California (WCIRB), as its rating organization. Your own premium then depends on your class codes, your payroll and your experience modification rate (EMR).
What is the average workers' comp rate in California?
The Oregon Department of Consumer and Business Services's 2024 study puts California's all-industry index rate at $1.86 per $100 of payroll for rates in effect on September 1, 2023, 170% of the study's national median of $1.09. That ranks California #4 of 51 jurisdictions, where #1 is the most expensive (#3 in the 2022 study). Your own rate depends on your class codes.
Sources
Official texts behind this page (4 quotes)
“When a dispute like that arises, the Division of Workers' Compensation can help resolve it through its Information and Assistance Unit or by going before a judge at one of the division's 23 local district offices plus satellites.”
Employer information — California Division of Workers' Compensation (opens in a new tab) · checked October 3, 2026
“California employers are required by law to have workers' compensation insurance, even if they have only one employee.”
Employer information — California Division of Workers' Compensation (opens in a new tab) · checked October 3, 2026
“Every employer except the state shall secure the payment of compensation in one or more of the following ways: (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this state. (b) By securing from the Director of Industrial Relations a certificate of consent to self-insure”
California Labor Code § 3700 — California Legislative Information (opens in a new tab) · checked October 3, 2026
“The State Compensation Insurance Fund is continued in existence, to be administered by its board of directors for the purpose of transacting workers’ compensation insurance”
California Insurance Code § 11770 — California Legislative Information (opens in a new tab) · checked October 3, 2026
An estimate for planning, not a quote, legal or insurance advice. IncidentLog is not an insurer or broker. Median rate across all industries: $1.09 per $100.