Short answer: Yes.
In California, if you have even one employee — including part-time — you are legally required to carry workers’ compensation insurance.
Let’s break it down clearly.
đź“ś What Does California Law Say?
Under California law, any business with one or more employees must carry workers’ compensation insurance.
This requirement is enforced by the
California Department of Industrial Relations.
There is no exception for:
- Part-time employees
- Seasonal workers
- Temporary staff
- Family members on payroll
If they are classified as employees, coverage is required.
🧑‍💼 What Counts as an “Employee”?
An employee includes:
âś” Full-time workers
âś” Part-time workers
âś” Minors
âś” Undocumented workers
âś” Family members (in many cases)
Even if someone works only 5–10 hours per week, the law still applies.
âť“ What About Independent Contractors?
This is where many business owners get confused.
You may not need workers’ comp for true independent contractors.
However, California has strict classification standards.
If a worker is misclassified and later deemed an employee, you could face:
- Back premiums
- Fines
- Legal penalties
- Personal liability for medical bills
Misclassification audits are common.
💰 What Happens If You Don’t Carry Workers’ Comp?
Operating without required workers’ comp insurance can result in:
❌ Fines up to $10,000 or more
❌ Stop-work orders
❌ Criminal misdemeanor charges
❌ Personal liability for employee injuries
If an employee is injured and you don’t have coverage, you may be personally responsible for:
- Medical bills
- Lost wages
- Legal costs
That risk alone makes compliance critical.
🩹 What Does Workers’ Comp Cover?
Workers’ compensation typically covers:
âś” Medical treatment for work-related injuries
âś” Temporary disability benefits
âś” Permanent disability benefits
âś” Supplemental job displacement
âś” Death benefits
It also protects employers from most workplace injury lawsuits.
📊 Is Workers’ Comp Expensive for One Employee?
Not necessarily.
Premium is based on:
- Industry classification
- Payroll size
- Claims history
- Risk level of work performed
For a low-risk office employee working part-time, premiums may be relatively modest compared to the legal exposure of not having coverage.
🧠Key Takeaway
If you have even one part-time employee in California, workers’ compensation insurance is required by law.
There are very few exceptions.
The cost of non-compliance can far exceed the cost of the policy.
📅 Not Sure If You’re Compliant?
At Starwest Insurance, we help California business owners:
✔ Confirm whether workers’ comp is required
âś” Ensure proper employee classification
âś” Compare multiple carrier options
âś” Reduce premium exposure
âś” Stay compliant with state regulations
👉 Schedule a Workers’ Compensation Review Today