Do California contractors need workers' compensation insurance?
Any California contractor with employees must carry workers' compensation insurance. Contractors with no employees can usually file a CSLB exemption instead — but several classifications must carry workers' comp even with no employees, and that requirement is expanding to all licensees on January 1, 2028.
Verified against CSLB on · reflects current CSLB rules and California law.
Summary — key takeaways
- Any California contractor with employees must carry workers' compensation.
- C-39 roofing, C-8, C-20, C-22, and D-49 must carry it even with no employees (SB 216).
- Contractors with no employees can otherwise file a CSLB exemption (B&P §7125).
- SB 1455 delayed the all-classifications requirement to January 1, 2028.
- Confirm coverage before hiring — especially roofing, HVAC, concrete, asbestos, tree work.
The baseline workers' comp rule
The baseline, under Business & Professions Code §7125: a licensee with employees must have a workers' compensation policy on file with CSLB; a licensee with no employees may file an exemption certifying that. CSLB shows which applies on the license record.
Trades that must carry it regardless of employees
Some classifications must carry workers' comp regardless of whether they have employees. C-39 roofing contractors have long been required to. Under Senate Bill 216, that mandatory coverage also applies to C-8 (concrete), C-20 (HVAC), C-22 (asbestos abatement), and D-49 (tree service) contractors. For these trades, an exemption is not an option.
The requirement expands to all contractors in 2028
Senate Bill 216 was set to extend the regardless-of-employees requirement to every license classification, and Senate Bill 1455 delayed that universal requirement to January 1, 2028. Until then, contractors outside the listed classifications who have no employees may still operate under an exemption — so confirm coverage before hiring, especially for roofing, HVAC, concrete, asbestos, and tree work.
Frequently asked questions
Which California contractors must carry workers' comp even with no employees?
C-39 roofing, plus C-8 concrete, C-20 HVAC, C-22 asbestos abatement, and D-49 tree service contractors must carry workers' compensation regardless of employees under Senate Bill 216. From January 1, 2028, the requirement extends to all classifications.
Can a contractor be exempt from workers' compensation?
Yes — a licensee with no employees can file a CSLB exemption, unless they hold a classification that requires coverage regardless of employees (such as C-39, C-8, C-20, C-22, or D-49). Always confirm which applies.
Why does a contractor's workers' comp matter to me?
If a worker is injured on your property and the contractor has no coverage, you can be exposed to the cost. Confirming workers' compensation protects you, not just the crew.
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