CSLB Workers’ Comp 2028 — California Contractors

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If you hold an active California contractor license and currently file a no-employee workers’ compensation exemption, the rules are changing. By January 1, 2028, nearly every active CSLB license must have workers’ compensation insurance — or a Certification of Self-Insurance — on file with the Board. The only exemption that remains after that date is for a no-employee joint venture that files the required statement.

Quick answer: By January 1, 2028, nearly every active California contractor license must have workers’ comp or a Certification of Self-Insurance on file with CSLB. SB 1455 moved the deadline from 2026. C-8, C-20, C-22, C-39 and D-49 licenses already need it. After 2028, only a no-employee joint venture stays exempt. Going inactive is the legal alternative.

Lions & Coventry Insurance Services works with California contractors statewide who need a clean CSLB certificate, COIs for GCs, and a policy that matches how they actually staff a job. Sacramento metro is a local example — the CSLB rule is California-wide. Producers quote and place; we don’t promise approval.

Last reviewed October 2026.

Who needs workers’ comp by when

  • Already required (no exemption): Active C-8 (Concrete), C-20 (HVAC), C-22 (Asbestos Abatement), C-39 (Roofing), and C-61/D-49 (Tree Service) licenses must carry WC or self-insurance whether or not they have employees. Same if your license is qualified by a Responsible Managing Employee (RME).
  • Still exempt today (if truly no employees): Most other classifications — including many solo B (General Building) and C-10 (Electrical) licensees — may still file CSLB’s no-employee exemption form.
  • Starting January 1, 2028: That broad no-employee exemption ends. SB 1455 (Ashby, Ch. 485, Stats. 2024) moved the universal WC deadline from 2026 to 2028. After that date, only a joint venture with no employees keeps an exemption path.
  • Practical takeaway for Sac contractors: If you are currently exempt and plan to keep an active license past Dec 31, 2027, budget time to shop WC before the 2028 cutoff — especially if GCs already demand a COI with CSLB listed as certificate holder.

Who’s exempt now vs. after Jan 1, 2028

Situation Now (through Dec 31, 2027) On / after Jan 1, 2028
Solo owner, no employees, not C-8/C-20/C-22/C-39/D-49, no RME May file no-employee exemption Must have WC or self-insurance on file
Partnership / corp / LLC with no employees (same class limits) May file exemption Must have WC or self-insurance on file
C-8, C-20, C-22, C-39, or D-49 WC / self-insurance required Same
License qualified by an RME Cannot use exemption WC / self-insurance required
Joint venture with no employees May file exemption May still file exemption (only remaining path)
Anyone who hires even one employee subject to CA WC law Must carry WC; file certificate within 90 days of hire Same

This table is a plain-language summary of CSLB / Business and Professions Code §7125 rules. Confirm your license status and classification on your CSLB record before you act.

SB 291: exemption verification and penalties

SB 291 (Grayson, Chapter 455, Statutes of 2025) tightens how CSLB polices the exemption while it still exists:

  • Verification by Jan 1, 2027. CSLB must establish a process — including audit, proof, or other evidence — to verify that a licensee claiming no employees is actually eligible. The Board must report its proposed process to the Legislature by that date.
  • Minimum civil penalties when someone employs workers without maintaining WC coverage (including after a false exemption filing):
    • $10,000 minimum per violation for a sole owner licensee
    • $20,000 minimum per violation for a partnership, corporation, LLC, or tribal business licensee
    • Subsequent violations: additional civil penalties, not to exceed $30,000 per occurrence
  • No renewal / reinstate until a current Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance is on file.
  • Proposed ~$500 exemption filing / renewal fee (not enacted). CSLB has discussed funding enforcement with an estimated ~$500 exemption filing/renewal fee in its SB 291 legislative report; confirm current CSLB fee schedules — this is not automatically law.

False exemptions are not a paperwork shortcut. If you have helpers, day labor, or anyone who should be covered under California WC law, get coverage on file and keep the certificate current.

Certificate holders, COIs, and what GCs ask for

General contractors and public owners increasingly treat a missing or mismatched WC certificate as a gate, not a negotiation. Common asks we see from GCs and project owners:

  • CSLB listed as certificate holder on the WC certificate filed with the Board (required for CSLB filings)
  • Additional insured / waiver language on GL (separate from WC — WC is statutory and different)
  • Matching legal business name and license number on the certificate to the CSLB record
  • Continuous coverage — a lapse can suspend the license; work while suspended is treated as unlicensed

If a GC will not let you on site without WC proof, an exemption form will not help — even before 2028.

What a WC policy looks like for a one-person shop

A lot of solo licensees hear “you need workers’ comp” and picture a policy that pays them when they get hurt. Sometimes it does. Often it doesn’t. What the policy covers for the owner depends on how the business is set up, and California spells that out in Labor Code §§3351–3352.

  • Sole proprietor. You are not your own employee, so the owner usually isn’t covered unless you elect coverage with the carrier. The policy still exists to cover anyone you hire, and it is what CSLB wants on file.
  • Corporation. Paid officers and directors count as employees under §3351(c). A sole shareholder of a private corporation is excluded unless the owner or the corporation elects coverage. Other officers and directors may waive coverage only if they meet the ownership and health-coverage tests in §3352(a)(16) and sign a waiver under penalty of perjury.
  • Partnership or LLC. Working partners and members paid wages regardless of profits count as employees under §3351(f). A general partner or managing member may opt out by signing a sworn waiver the carrier accepts (§3352(a)(17)). The waiver stays in place until withdrawn.

Excluding yourself does not make the policy go away. It changes what the policy covers. It also doesn’t make it free: carriers set minimum premiums, so a no-payroll policy still costs real money. Your producer can give you the actual number once a carrier quotes; we won’t guess at one here.

The legal alternative is going inactive. The 2028 rule applies to active licenses. If you are not contracting, you can place the license on inactive status with CSLB instead of buying a policy you won’t use. You can’t bid or work on an inactive license, and you’ll need WC on file (or a valid exemption) before you reactivate.

Buy before the rush. Every currently exempt active licensee who stays active needs a policy on file by January 1, 2028. That means a wave of first-time accounts in late 2027, all hitting underwriters and CSLB processing at once. A first-time WC account needs time to underwrite, and you’ll want to fix a wrong legal name or license number before the deadline, not after. Starting in 2027’s first half is the calmer move.

Whether someone working for you is an employee or an independent contractor is a legal question. Talk to an employment attorney; a certificate won’t settle it.

Penalties outside CSLB

CSLB discipline isn’t the only exposure. Going without required coverage also brings in the Labor Commissioner and your carrier:

  • DIR stop order (Labor Code §3710.1). If you have employees and no coverage, the state issues a stop order barring employee labor until you comply. It takes effect on service, and affected employees are paid for lost time, up to 10 days.
  • $1,500 per employee (Labor Code §3722). A penalty assessment of $1,500 per employee comes with the stop order. If you were uninsured for more than a week, the state can instead assess the greater of twice the premium you would have paid or $1,500 per employee for the uninsured period.
  • C-39 annual payroll audit (Insurance Code §11665). Carriers writing a C-39 roofer must audit payroll every year, including an in-person visit to check the employee count, and may surcharge for the cost.
  • Class codes on your public record (Bus. & Prof. Code §7125.6). At renewal you certify the three WC class codes with the highest estimated payroll on your policy, and CSLB shows them on your license record. If your codes don’t match the work you advertise, GCs and anyone checking your license can see it.

Coverage is subject to underwriting and carrier availability. No rate quotes or placement promises.

Talk to a licensed Lions & Coventry producer: (916) 967-7715 or request a review. Lions & Coventry Insurance Services · CA Lic. #0G22084.

Related coverage

Optional CSLB reference (external): CSLB Workers’ Compensation Requirements.

What contractors usually ask about

  • Do I still qualify for a no-employee exemption with my classification?
  • When should a currently exempt B or C-10 buy a policy so the CSLB filing clears before Jan 1, 2028?
  • What happens if I hire one helper after I’ve filed an exemption?
  • How do I get CSLB listed correctly as certificate holder?
  • Will my WC certificate satisfy both CSLB and the GC’s COI checklist?
  • Does an owner-operator with no employees still need a policy after 2028? (Yes, unless you are a qualifying no-employee joint venture.)

Talk to a licensed producer

If you are a California contractor in Sacramento, Citrus Heights, Roseville, Folsom, Elk Grove, or Northern California contractor sorting out the 2028 WC requirement, talk to a licensed Lions & Coventry producer. We’ll match the conversation to your license class, payroll picture, and certificate-holder needs — then producers quote and place with available carriers.

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Lions & Coventry Insurance Services · California License #0G22084 · lionsandcoventry.com

Coverage is subject to underwriting and carrier availability. This page is general information about CSLB workers’ compensation filing rules, not insurance, legal, or tax advice. Confirm current requirements with CSLB and your own counsel.

FAQ

Do all California contractors need workers’ comp by 2028?

By January 1, 2028, active CSLB licensees generally must have workers’ compensation insurance or self-insurance on file. The remaining exemption is for a no-employee joint venture that files the required statement. Some classifications already must carry WC today.

Which contractor classifications already cannot file a no-employee exemption?

C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement, C-39 Roofing, and C-61/D-49 Tree Service. Licenses qualified by an RME also cannot use the exemption.

What did SB 1455 change?

It delayed the universal workers’ compensation requirement for CSLB licensees from January 1, 2026 to January 1, 2028.

What are the SB 291 penalties for working without WC while claiming an exemption?

Minimum civil penalties of $10,000 per violation for sole owners and $20,000 per violation for partnerships, corporations, LLCs, or tribal business licensees, with subsequent-violation caps up to $30,000 per occurrence. CSLB also will not renew or reinstate until valid WC proof is on file.

When does CSLB have to verify no-employee exemptions?

SB 291 requires CSLB to establish a verification process (including audit or other evidence) by January 1, 2027 and report the proposed process to the Legislature by that date.

I’m a solo B or C-10 with no employees. When should I buy WC?

Before you need a GC COI, and in any case early enough that the carrier certificate is accepted by CSLB before the January 1, 2028 cutoff. Timing depends on your jobs and underwriting — talk to a producer; do not wait until December 2027 if you can avoid it.

Does Lions & Coventry guarantee CSLB will accept my certificate?

No. Acceptance depends on correct filing, carrier licensing, and CSLB processing. We help get the paperwork right; we do not guarantee Board outcomes.

If I exclude myself as the owner, do I still need a WC policy for CSLB?

Yes, if your license is active and you don’t qualify for the no-employee joint venture exemption after January 1, 2028. Owner include and exclude rules under Labor Code sections 3351 and 3352 change what the policy covers, not whether CSLB requires one. Carriers also charge minimum premiums, so a no-payroll policy is not free.

What happens if I have employees and no workers’ comp?

Outside CSLB, the Labor Commissioner can issue a stop order barring employee labor (Labor Code section 3710.1) and assess $1,500 per employee, or more if you were uninsured longer than a week (Labor Code section 3722). Going inactive with CSLB is the legal alternative if you are not contracting.


A contractor license bond is a separate CSLB requirement from workers’ comp coverage.

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Tell us about your operations, locations, payroll or revenue, and the coverage or certificates you need. Lions & Coventry has placed commercial insurance since 2009 and is licensed in all 50 states (CA Lic. #0G22084).

Request a Quote Call (916) 967-7715