Workers' compensation coverage is required for employers with how many employees?

Workers' compensation coverage is required for employers with how many employees?

• A. 0 employees
• B. 1 or more
• C. 5 or more
• D. 10 or more

Answer: (B)

In California, workers’ compensation coverage becomes mandatory as soon as an employer has any employees. This requirement exists to ensure that workers who are injured on the job can receive medical care and wage-replacement benefits, regardless of how many hours they work or whether they’re part-time. If you have zero employees, there’s no legal obligation to carry workers’ comp. However, once you hire even a single employee, you must obtain coverage. There are some nuances for business owners who work solo (such as sole proprietors or partners without employees), who may elect to exclude themselves; if they hire someone, the coverage must start. Not having coverage can lead to penalties and liability if an employee is injured. So the rule is that coverage is required for employers with one or more employees.

In California, workers’ compensation coverage becomes mandatory as soon as an employer has any employees. This requirement exists to ensure that workers who are injured on the job can receive medical care and wage-replacement benefits, regardless of how many hours they work or whether they’re part-time. If you have zero employees, there’s no legal obligation to carry workers’ comp. However, once you hire even a single employee, you must obtain coverage. There are some nuances for business owners who work solo (such as sole proprietors or partners without employees), who may elect to exclude themselves; if they hire someone, the coverage must start. Not having coverage can lead to penalties and liability if an employee is injured. So the rule is that coverage is required for employers with one or more employees.