The Division of Workers' Compensation (DWC) monitors the administration of workers' compensation claims, and provides administrative and judicial services to assist in resolving disputes that arise in connection with claims for workers' compensation benefits.

Workers' compensation is the nation's oldest social insurance program. It was adopted in most states, including California, during the second decade of the 20th century. The workers' compensation system is based on a trade-off between employers and employees. Employees are entitled to receive prompt, effective medical treatment for on-the-job injuries or illnesses no matter who is at fault and, in return, are prevented from suing employers over those injuries.

Unlike most social insurance programs, workers' compensation benefits are not administered by a government agency. They are administered primarily by insurance companies and those employers secure enough to self-insure their workers' compensation liability.