EmploymentQuestion 998 of 1605

Who is responsible for paying workers' compensation insurance premiums?

a.The employer pays the full cost; it is illegal to deduct any part of the premium from employees' wages
b.The state pays the premium out of general tax revenue
c.The employee pays the premium through a payroll deduction
d.The employee and employer split the premium equally

Explanation

Under Labor Code §3751, the employer must pay the entire cost of workers' compensation coverage. It is unlawful for an employer to require an employee to contribute to, or to deduct from wages any part of, the workers' compensation premium.

Law Reference: Labor Code §3751

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