Workers Comp Rates in California (CA)

California workers comp rates are approximately 42% above the national average. Here's what California business owners need to know about classification and premiums.

California Workers Comp Overview

California has some of the highest workers comp rates in the country. The state uses an open competitive rating system, meaning insurers set their own rates — but WCIRB (Workers' Compensation Insurance Rating Bureau) sets the baseline. Misclassification here costs more than almost any other state.

How California Rates Compare

With a state modifier of 1.42x, a business in California paying $10,000 in base premium nationally would pay approximately $14,200 in CA. This makes proper classification even more important in high-rate states like California — every misclassified employee costs more.

The most impactful thing a California business owner can do is ensure that office, clerical, and administrative employees are coded separately from their operational staff. In CA, the difference between a clerical code (8810 at $0.16/$100) and a construction code (5403 at $9.42/$100) is massive — and that gap is amplified by the state modifier.

This guide is for informational purposes only and is not insurance advice. California rates and requirements are subject to change.