Restaurant Workers' Comp in California

Q: How much is restaurant workers' comp in California?

In California, the restaurant class-code rate is California uses WCIRB advisory pure premium rates, not NCCI. Effective Sept. 1, 2024 the old class 9079(1) split into six classes: full-service restaurants = 9080, fast food/fast casual = 9083, bars/taverns = 9084, food trucks = 9081. The advisory pure premium rate for full-service 9080 runs roughly $2.70–$2.80 per $100 of payroll; insurers file their own rates off this benchmark. Approximate, industry tier.. Premium is that rate times your payroll (per $100), adjusted by your experience modifier. Competitive private market backed by the State Compensation Insurance Fund (State Fund), a non-profit state entity that competes with private carriers and serves as the insurer of last resort.

What California requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.

Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated July 26, 2026.

Yes. California Labor Code section 3700 requires every employer with one or more employees—including restaurants—to secure workers' compensation coverage, with no small-business exemption. A sole proprietor with no employees is exempt, and owner-officers of a fully owned corporation may elect out. Operating uninsured is a misdemeanor carrying fines of at least $10,000 plus stop-work orders.

Required?: Yes
Kicks in at: One or more employees. Under Labor Code section 3700, any employer with at least a single employee — full-time, part-time, or seasonal — must secure workers' compensation, either by buying a policy or obtaining state approval to self-insure. There is no headcount minimum and no waiting period.
Restaurant rate: California uses WCIRB advisory pure premium rates, not NCCI. Effective Sept. 1, 2024 the old class 9079(1) split into six classes: full-service restaurants = 9080, fast food/fast casual = 9083, bars/taverns = 9084, food trucks = 9081. The advisory pure premium rate for full-service 9080 runs roughly $2.70–$2.80 per $100 of payroll; insurers file their own rates off this benchmark. Approximate, industry tier.
Market: Competitive private market backed by the State Compensation Insurance Fund (State Fund), a non-profit state entity that competes with private carriers and serves as the insurer of last resort.

Is workers’ comp required for a restaurant in California?

California requires workers' compensation once you reach One or more employees. Under Labor Code section 3700, any employer with at least a single employee — full-time, part-time, or seasonal — must secure workers' compensation, either by buying a policy or obtaining state approval to self-insure. There is no headcount minimum and no waiting period.. A true sole proprietor or partnership with no employees need not cover the owners themselves. Executive officers and directors of a corporation wholly owned by those officers/directors, and managing members of an LLC, may elect to exclude themselves in writing; genuine independent contractors are also outside coverage, though misclassification is heavily scrutinized.

What restaurant workers’ comp costs in California

The restaurant class-code rate in California is California uses WCIRB advisory pure premium rates, not NCCI. Effective Sept. 1, 2024 the old class 9079(1) split into six classes: full-service restaurants = 9080, fast food/fast casual = 9083, bars/taverns = 9084, food trucks = 9081. The advisory pure premium rate for full-service 9080 runs roughly $2.70–$2.80 per $100 of payroll; insurers file their own rates off this benchmark. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive private market backed by the State Compensation Insurance Fund (State Fund), a non-profit state entity that competes with private carriers and serves as the insurer of last resort.

What owners in California miss

Failing to carry required coverage is a criminal misdemeanor under Labor Code section 3700.5, punishable by a fine of not less than $10,000 or imprisonment, and the state can issue a stop-order shutting the business down until coverage is obtained.
Corporate officers and directors are automatically included in coverage unless the corporation is fully owned by those officers/directors, in which case they may affirmatively elect to be excluded.
Effective September 1, 2024 the WCIRB replaced the single restaurant/tavern class 9079(1) with six distinct classifications, initially sharing one advisory pure premium rate until enough loss data separates them.
California scrutinizes worker misclassification aggressively under the ABC test (Labor Code 2775), so treating servers or delivery staff as independent contractors to dodge premium is a significant enforcement risk.

Sources

California Legislature (via FindLaw): California Labor Code § 3700 — Employer’s duty to secure compensationprimaryretrieved 2026-07-27
California Department of Industrial Relations: DWC FAQs for employersprimaryretrieved 2026-07-27
State Compensation Insurance Fund: WCIRB Changes Restaurant and Tavern Classificationsindustryretrieved 2026-07-27

Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.

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