Under California Labor Code §3700, which employers are required to carry workers' compensation insurance?
a.All employers, including those with only one employee
b.Only employers in construction, agriculture, or mining
c.Only employers whose annual payroll exceeds $100,000
d.Only employers with five or more employees
Explanation
California is the strictest state in the nation on this point: Labor Code §3700 requires every employer with even one employee to either carry a workers' compensation policy from an admitted insurer or obtain approval to self-insure. There is no small-employer exemption based on headcount, industry, or payroll size.
Law Reference: Cal. Labor Code §3700This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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Related questions on this topic
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