If you have an employee in Los Angeles, part-time included, you need workers’ comp before they start. The price is mostly arithmetic: payroll in each job classification times that classification’s rate, adjusted by your experience modification if you are large enough to have one. Most mistakes are classification and payroll estimates, which surface later at the premium audit. Contractors have an extra deadline: under current law, every licensed California contractor will need workers’ comp from January 1, 2028.
- Who sells workers’ comp in Los Angeles? Insurance companies, including the State Compensation Insurance Fund, through licensed brokers and agents. An independent broker such as Alishahi Insurance (Beverly Hills, CA License #4348151) quotes several at once.
- California requires workers’ comp once you have an employee, regardless of hours worked.
- Premium is based on payroll by job classification, and is checked against actual payroll at the end of the policy term in a premium audit.
When it’s required
California’s requirement attaches to the employment relationship. One employee is enough, and so is a part-time one. Calling a worker an independent contractor does not settle the question; California starts from the presumption that a person you pay to work in your business is an employee. Workers’ comp and 1099 contractors, and part-time employees.
Going without it is treated seriously: the Labor Commissioner can stop operations and assess penalties, and the employer can be left with the full cost of an injured employee’s claim. Owners with no employees.
How the price is built
- PayrollEstimated at the start of the policy, then trued up at audit.
- Class codesEach type of work has its own classification and rate. A clerical employee and a roofer cost very different amounts per $100 of payroll.
- Experience modificationLarger employers get a factor based on their own claims compared with similar businesses. How the mod works.
- The insurer’s own pricingCarriers file their own rates, so the same payroll can price differently from one insurer to the next. That is why it is worth shopping.
The premium audit
Because the policy starts on an estimate, the insurer checks your actual payroll after the term ends and bills or refunds the difference. Audit surprises usually come from three things: payroll that grew during the year, employees doing work in a higher-rated classification than the one on the policy, and uninsured subcontractors, whose payroll can be added to yours. Keep certificates of insurance from every sub. How premium audits work.
Contractors and the 2028 change
Some contractor license classifications already require workers’ comp even with no employees. Under current law, that requirement extends to every licensed contractor on January 1, 2028. If you hold a CSLB license and have been relying on an exemption, plan the change before your first renewal after that date. The 2028 contractor workers’ comp change.
Businesses that are hard to place
Roofing, framing, tree work, trucking, security, staffing and some restaurant operations can be declined by standard carriers or priced high. Those businesses can still be insured, through carriers with appetite for the class or through the state fund. Workers’ comp for high-risk businesses.
What to send me
- Payroll by job for the last year and an estimate for the next.
- What each employee does, so the classifications are right from the start.
- Your current policy and loss runs, if you have coverage now, and your experience mod if you have one.
- Subcontractor use and whether you collect their certificates.
Common questions
Do I need workers’ comp for one employee in Los Angeles?
Yes. California requires workers’ compensation once a business has an employee, and that includes a single part-time employee.
How much does workers’ comp cost in Los Angeles?
It depends on your payroll and on the classification of each job, then on your claims history. Two businesses with the same payroll can pay very different amounts if one has clerical staff and the other has employees on roofs.
Who sells workers’ comp insurance in Los Angeles?
Insurance companies licensed in California, including the State Compensation Insurance Fund, sell it through licensed brokers and agents. An independent broker can quote several at once.
What happens at a workers’ comp audit?
The insurer compares the payroll you estimated with what you actually paid, by classification, and bills or refunds the difference. Keeping payroll records by job and certificates from subcontractors avoids most surprises.
General information about California workers’ compensation as of October 2026, not legal advice. Requirements and penalties are set by state law; the Department of Industrial Relations has the details. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.