California employers are required to carry workers' compensation insurance if they have:
Correct Answer
C) One or more employees, with limited exceptions
California requires workers' compensation insurance for virtually all employers with one or more employees, with very limited exceptions such as certain domestic workers.
Why This Is the Correct Answer
California Labor Code Section 3700 mandates workers' compensation coverage for any employer with one or more employees. The threshold is extremely low — even a single part-time, seasonal, or temporary worker triggers the requirement. Exceptions are narrow and rarely apply in a contractor context.
Why the Other Options Are Wrong
Option A: Any number of employees, including part-time
Option A is close but not precise — 'any number including part-time' implies the threshold is zero employees, which is not the legal standard. The correct answer acknowledges there are limited exceptions, making option C the more accurate statement of the law.
Option B: Two or more employees working more than 20 hours per week
The '20 hours per week' threshold does not exist in California workers' compensation law. California imposes no minimum hours requirement; even a worker with one hour of work triggers coverage obligations.
Option D: Five or more employees
A five-employee threshold applies in some other states (e.g., Texas has no mandatory requirement at all; Alabama uses three employees), but California's rule is far stricter. Using a higher threshold would leave many workers without protection.
Memory Technique
Think '1 and done' — in California, hire just ONE employee and you are done debating coverage. You must carry workers' comp.
More California Questions
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