Workers' compensation insurance (mandatory for any employee): San Francisco restaurant guide
California DIR — Division of Workers' Compensation
What it is
California Labor Code §3700 requires every employer with one or more employees to carry workers' compensation insurance; SFDPH requires proof of it before issuing the health Permit to Operate.
When a restaurant needs it
Before your first employee's first shift — and before you apply for the DPH health permit.
How to apply
Buy a policy from a licensed insurer or the State Compensation Insurance Fund (the insurer of last resort); keep the certificate for DPH and the required workplace posting.
Documents you’ll need
- Entity details and payroll estimate
- Job classifications (cooks, servers, bartenders)
- Certificate of insurance for DPH
Good to know
Operating without coverage is a crime: up to one year in jail and fines of at least $10,000, plus stop orders and penalties of up to $100,000.
Official source
CA DIR — workers' compensation FAQ for employers
Answer a few questions about your space and get every permit in order, with a timeline, a cost range, walkthroughs, and every application filled in for you to sign with Open.
Last reviewed 2026-10-06. Guidance only, not legal advice.