California Workers' Compensation Law: The Basics (2025)

Employer Obligations to Carry Workers’ Compensation Insurance

California has some of the strictest workers’ compensation requirements in the country. California Labor Code states that businesses with one or more employees must have workers’ compensation insurance.

What the Law Defines as a Work-Related Injury or Illness

California workers’ compensation law defines an injury or illness as work-related if a workplace event or exposure:

• Caused an injury/illness
• Contributed to an injury/illness
• Aggravated an existing condition

There are some exceptions. For instance, if you were intoxicated or engaging in horseplay at the time of the injury, workers’ compensation will likely decline to cover it.

Legal Rights of Injured Employees Under California Law

If an employee has a work-related illness or injury, they are entitled to medical care and disability benefits. They are also protected from employer retaliation.

Statutory Deadlines and Filing Requirements Employers Must Follow

Generally, an employer must provide an employee with a DWC-1 claim form within one working day of their injury report. Employers should also forward the claim to the insurance company within a working day.

The insurance company then has 90 days to approve or deny the claim. The employer must cover up to $10,000 of medical care before the insurance company’s decision.

Penalties for Employer Non-Compliance With California Workers’ Comp Laws

California workers’ compensation law imposes steep penalties on employers without proper coverage. Employers who violate the law could owe up to $100,000 in fines and spend up to a year in jail.

Dispute Resolution & Appeals Process Under State Law

If your claim is denied, you have 20 days—or 25 days if the decision was mailed to you—to file a Petition for Reconsideration. Here’s what happens next:

• The Workers’ Compensation Appeal Board (WCAB) has 60 days to make a decision
• If the appeal is denied, you may request a writ of review with the California appellate court
• If this is unsuccessful, you may file an appeal with the California Supreme Court

You may also file an appeal with the California Department of Insurance (CDI). You have 30 days from the denial of your Petition for Reconsideration to do so.

Need Legal Help?

If you’ve been severely injured or are having issues getting your claim approved, a California work injury lawyer can help. ConsumerShield can match you with qualified workers’ compensation lawyers in your area. Fill out our contact form for a free case review!