In 2008, the California Legislature established the Occupational Safety and Health (OSH) Fund, funded by workers’ comp premium assessments paid by California employers. For 2026, employers’ assessments will rise 238% from 2024, reaching a total assessment of nearly $217 million. DIR’s assessments sometimes over-collect, and sometimes under-collect, for the agency’s immediate funding needs in an effort to provide stable funding for the agency.

Employers’ assessments provide the lion’s share of the agency’s budget from year; most DIR operations receive no funding from the state’s General Fund.

DIR also receives about $25 million in federal grants each year to finance compliance assistance programs (Cal/OSHA Consultation) and other activities. Cal/OSHA 2025-2026 budget is projected to be nearly $254 million.