In California, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and California's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in California, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in California?
Mandatory for any employer with one or more employees — there is no headcount exemption.
Can owners and officers be included or excluded in California?
| Sole proprietor | Excluded by default; may elect in. |
|---|---|
| Partners | Covered only by election; may elect out by written waiver if qualified. |
| LLC members | Managing members may elect out by written waiver if qualified, otherwise included. |
| Corporate officers | Generally included by default; qualifying stock-owning officers may elect out. A sole shareholder who is officer/director of a private corporation is excluded by default unless they elect in (eff. 7/1/2018). |
How to make the election in California
- Our form: CWCO California Workers Comp Exclusion Waiver — our fillable California waiver, built from the statute.
- Official source: California Division of Workers' Compensation — employer fact sheet
Payroll counted for an included owner in California
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 9/1/2026), set by the WCIRB.
| Included owner/officer minimum | $66,300 per year |
|---|---|
| Included owner/officer maximum | $171,600 per year |
These amounts update periodically; we confirm the current figure for your policy. Source: WCIRB Executive Officers & Partners guide.
California's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through California Workers' Compensation Insurance Plan (administered by the WCIRB); State Compensation Insurance Fund (SCIF) is the insurer of last resort. We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
California business insurance · Workers' compensation coverage · California Division of Workers' Compensation.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in California?
It depends on your entity and role. Excluded by default; may elect in. Generally included by default; qualifying stock-owning officers may elect out. A sole shareholder who is officer/director of a private corporation is excluded by default unless they elect in (eff. 7/1/2018). Employees are always covered.
How do I include or exclude an owner from workers' comp in California?
The right form, portal, or endorsement depends on your entity type. California does not publish its own exclusion form — the waiver is delegated to the insurer — so we provide a California-specific CWCO waiver that the qualifying owner signs under penalty of perjury, and we confirm acceptance with your carrier.
What payroll is used for an included owner in California?
$66,300 to $171,600 per year We confirm the current figure for your policy.
Can Cory Washington & Co. handle my California workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.