Are you an employer in California? If so, you should know what the state mandates in terms of your requirement to provide insurance for your employees should they become injured or ill due to a job-related situation or incident. As explained by the State of California, Department of Industrial Relations, workers' compensation coverage is put totally on the shoulders of you, the employer. Employees should not be asked nor required to contribute to any premiums for this type of insurance.
There are three options via which you may legally be considered insured in the eyes of the law. One of these is to be self-insured. This requires that you meet some very stringent financial thresholds regarding your annual income and net worth. In addition, you must put up a deposit and be approved as self-insured by the state. You may also purchase workers' compensation insurance through the State Compensation Insurance Fund or through a private insurance company.
California considers it a misdemeanor for an employer to not carry valid workers' compensation coverage. Any offense may result in you being ordered to spend time in jail, pay fines and maybe even penalties in addition to provide coverage for employee medical costs. Injured or ill employees may even be able to pursue compensation from you through civil proceedings.
If you would like to get more information about your responsibilities as an employer to carry workers' compensation insurance for your employees, please feel free to visit the injured or ill employee coverage page of our California workers' compensation website for employers.