❓ Do I need workers' comp for independent contractors in California?

In most cases, you are not required to provide workers' compensation insurance for independent contractors in California. However, there are important exceptions and legal risks to understand:

✅ Key Points:

1. True Independent Contractors Are Exempt:
   If the person working for you is legally classified as an independent contractor (per California law), you are generally not required to provide workers’ comp coverage for them.

2. The ABC Test Applies:
   California uses the ABC Test (from AB5 law) to determine whether a worker is truly an independent contractor. You must prove all three:

   • A: The worker is free from your control/direction.

   • B: The work is outside your usual business.

   • C: The worker is independently established in that trade/profession.

   🔍 If you fail the ABC Test, the state may reclassify the worker as an employee — and then you are required to provide workers' comp.

3. Misclassification Can Be Costly:
   Employers who wrongly classify workers as independent contractors may face fines, lawsuits, and be held liable for unpaid benefits, medical costs, and back insurance premiums.

4. Some Businesses Choose to Cover Contractors:
   Even if not required, some businesses choose to include independent contractors in their workers’ comp policy to protect against disputes or legal risk.

🛡️ Bottom Line:

If you’re unsure about a worker’s classification, consult with a workers’ comp insurance provider or employment law attorney. Misclassification is one of the most common and expensive legal pitfalls for California employers.

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