The California workers’ compensation is an insurance provided by employers to employees to cover their medical costs and lost wages when they get injured in a work-related incident. All California businesses that have at least 1 worker must carry this coverage.

California’s workers compensation is a no-fault system. This means that an injured worker will receive coverage whether the incident that led to their injury was caused by themselves, their employers, or other coworkers. It compensates for medical treatment and lost wages without subjecting the worker to the duty of proving fault.

The workers’ compensation system was put in place to replace the personal injury lawsuits that people file when they get hurt in other accidents. When a worker chooses to file the workers’ compensation and receives a settlement, they will not be eligible to sue their employer for the same injuries. A personal injury lawsuit offers additional benefits to the ones provided by the workers’ compensation, which covers medical treatment and lost wages. The personal injury lawsuit could include compensation for pain and suffering and punitive damages.