If you employ remote or out-of-state workers, whether you need California workers compensation depends on where each person actually works and where they were hired. A worker who works in California, or who was hired in California, is generally covered under California law and needs a California policy, even for an injury that happens out of state. A worker based in another state usually falls under that state's rules, and most states require coverage too, so the safe move is to check state by state.
Who this is for: California employers with remote workers, staff who travel for work, or employees based in other states, common for tech, consulting, and professional firms.
The short version
- A worker who works in California, or was hired here, generally needs California coverage, even for out-of-state injuries.
- A worker based in another state usually falls under that state's comp law, and most states require coverage.
- An out-of-state employer with staff working in California generally needs California coverage for them.
- There is a narrow exemption when another state's policy covers the California work and the two states have reciprocity.
- The safest step is to confirm coverage in every state where a worker actually sits before you assume California handles it.
Which state's rules reach a remote worker
California reaches an employee who is hired in California or who regularly works in California, and it keeps that reach even when the injury happens out of state. So a California-based remote employee needs California coverage. At the same time, California cannot switch off another state's mandate: a worker who lives and works in a state that requires comp is generally governed by that state's law, and you may need coverage there. Remote-hire decisions should therefore be checked against the rules of each state where a worker actually sits, not just California.
Out-of-state employers and California work
If your business is based outside California but has an employee working here, California generally requires a California policy, or California listed on your existing policy, for that work. There is one narrow way out: an out-of-state employer whose worker is only temporarily in California is exempt if it already provides comp under another state's law that covers the California work, and the two states recognize each other's coverage (reciprocity). Without that reciprocal arrangement, plan on California coverage for anyone working here.
Common remote setups
| Setup | What usually governs | What to check |
|---|---|---|
| California worker, works in California | California law | You need California coverage |
| Worker based in another state | That state's comp law | That state likely requires its own coverage |
| California-hired worker injured out of state | Often California | Hired in California or regularly works here |
| Out-of-state employer, staff work in California | California policy usually required | Exempt only with another state's coverage plus reciprocity |
A San Francisco example
Illustrative, not a quote. A San Francisco software company keeps most of its team in California and hires two fully remote employees in other states. The California staff clearly need California coverage, which the company carries. For the two out-of-state hires, it checks each state's rules, because those states likely require their own coverage. When a California-based salesperson is hurt on a short trip out of state, her California hire keeps her California rights. We help the company line up coverage that matches where its people actually work.
Real questions California owners ask
Do I need workers comp for remote workers in California?
For staff who work in California, or who were hired here, yes, you generally need California coverage. A worker based in another state usually falls under that state's rules, which often require coverage too.
Does California coverage follow a worker who travels out of state?
Often yes. A worker hired in California or who regularly works here generally keeps California rights even when injured out of state, so a California policy still applies to that trip.
I hired a remote employee in another state. Whose rules apply?
Usually that state's. California cannot switch off another state's mandate, so a worker who lives and works in a state that requires comp is generally governed there. You likely need coverage in that state.
I am based out of state but have a worker in California. Do I need coverage here?
Generally yes. California usually requires a California policy, or California added to your existing policy, for an employee working here, unless a narrow reciprocity exemption applies.
I already carry a policy in my home state. Can that cover my worker in California?
Only in a narrow case. If your worker is in California just temporarily and your home-state policy already covers that work, you can be exempt when the two states recognize each other's coverage, called reciprocity. Without that reciprocal arrangement, plan on California coverage for anyone working here.
Does one policy cover employees in several states?
Sometimes, if the states are listed on the policy. Many businesses add each state where workers sit to their coverage. The key is to confirm every work state is actually named, not assumed.
What should I check before hiring remotely from California?
Check the comp rules of each state where a worker will actually sit, and make sure California is covered for anyone working here. Assuming one state's rule covers a distributed team is the common mistake.
Why California owners choose Morrow
- We shop the right market for you. In California you buy workers' comp on the open market from any licensed private carrier, with the State Compensation Insurance Fund competing alongside them and standing as the insurer of last resort, so we can shop your rate freely and still have a guaranteed fallback for hard-to-place accounts.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related California guides
Every California business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in California (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- California tech workers comp
This guide is general information, not legal advice. California rules and penalty amounts can change, so verify current requirements with California Division of Workers' Compensation (DWC), a division of the Department of Industrial Relations (DIR) or a licensed advisor before you rely on them. Last updated: July 2026.