California employers will pay nearly 5.2% on top of workers’ compensation premium in 2026 to fund the state’s workers’ comp system, Cal/OSHA, labor law enforcement, and anti-fraud programs. Currently, insured employers are paying just over 5% of premium.
The Department of Industrial Relations so noticed workers’ comp carriers late last week. Carriers pay the assessments upfront and then recoup the monies from employers over the course of the year through their workers’ comp policies.
Self-insured employers pay the assessments directly to the Department based on a percentage of the indemnity benefits they have paid to their injured workers. The assessment factor for self-insured employers is 7.8%, down half a point from last year’s 8.5%.
Overall, the Department says it needs $2.04 billion to run the system next year. The total assessment is down slightly from the $2.06 billion the Department said it needed for the current year.
Again this year, there is no assessment from the California Insurance Guarantee Fund.
Workers’ Comp Executive will provide a full analysis of assessments for insured and self-insured employers in the upcoming premium edition.
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