CSLB Workers’ Comp 2028 — California Contractors
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.
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 invent premiums or promise approval.
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.
Related coverage
- Workers’ compensation insurance — California overview
- HVAC contractors insurance (C-20 already needs WC on file)
- Roofing contractors insurance (C-39 already needs WC on file)
- Electrical contractors insurance (many solo C-10s still exempt until 2028)
- Contractors insurance nationwide & Loomis builders
- Construction insurance
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.
Call (916) 967-7715
Request a quote
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.