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Unlike many other states, worker's compensation insurance in California is absolutely mandatory. "Self-insuring" is only an option in the cases of companies with more than $5 million in net worth and a net income of $500,000 (and then only with a steep security deposit). In recent years, smaller companies have been allowed to "pool" their coverage together in group worker's comp policies. So stringent are California's worker's comp laws that even a real estate company has to carry worker's comp insurance on their real estate agents. Waivers are not permitted, nor is there an exemption for a lower number of employees.

Worker's comp policy in California is divided into two broad fields: worker's compensation and employer liability. Worker's compensation insurance is in place to protect and provide for employees who are injured on the job. Employer liability insurance covers the employer for any on-the-job injury suffered by an employee which is not compensable under worker's comp insurance. California worker's comp insurance is a "no-fault" system; in other words, it doesn't matter if it's the employee's negligence, the employer's or a third party's involvement, the employee will be taken care of regardless.

Making a posting of the employer's compliance accessible at every work site Seeing to it that every injury, regardless how small, is reported to the proper worker's comp authorities Documenting any lost-time injury with a written report Making sure that any employee injured on the job gets immediate emergency medical care Making sure that all information on a claim gets to the proper worker's comp office Providing medical care if the employee is unable or unwilling to do so on his own.

If an employee makes it known that he has a personal physician that he would like to see about any potential worker's comp claims, that employee has the right to see his personal doctor in case of an injury. The right of choice of physician also applies if the employer fails to post a notice of worker's comp rights and policies in the workplace. By California law, as many as seven percent of employees may "pre-designate" this way. In other cases, the employer has the first choice of physician (usually within a network of doctors who handle worker's comp cases), with the employee having the right to make a change after a 30-day period.

Premiums for worker's comp insurance are indexed according to the industry, the nature of the work and the company's prior record of on-the-job injuries. Underwriting adjustments such as a certified health care organization or special group or dividend programs may also have an influence on rates and premiums. An insurance carrier may impose a surcharge on a worker's comp premium according to the nature of the work and other factors; employers have the right to appeal that surcharge or just go elsewhere to look for coverage. An employer who cancels his worker's comp policy before the end of its term will be assessed with a penalty.

As in every other state, worker's comp insurance premiums in California are part of the cost of doing business; an employer cannot ask his employees to help pay for their premiums. The rates themselves are not regulated by the state of California. The state's Worker's Compensation Insurance Rating Bureau does make recommendations on carriers and rates, but as with any consumer-oriented industry, employers have the right and option to shop around for the best rates and coverage for their needs.

As in most other states, worker's compensation in California applies to the following:

Medical care (including all costs such as hospitalization, X-ray, doctor's bills, surgery, physical therapy, etc. from start to finish) Temporary disability (a stipend until the employee is able to recover and return to work) Permanent disability (a stipend if the employee is never able to work again) Vocational rehabilitation (retraining if the employee is too disabled to stay in his original field) Transportation reimbursement (back and forth to doctor's appointments, rehab or hospital) Death benefits (paid to surviving family)

In the case of a disputed claim, the employee can appeal to an Information and Assistance Officer; failing that, he/she can go to the state's Worker's Compensation Appeals Board for adjudication.

Unlike some states, an injured employee in California has the right to sue his employer if he/she can prove negligence, recklessness or other willful safety violations. It can include a full range of damages, including pain and suffering, bodily injury, mental anguish and diminished future earning power. Threatening to fire an employee for filing a worker's comp claim is considered retaliation in California and is a misdemeanor; it should be reported immediately to the local worker's comp office.

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