California Contractor Workers’ Compensation Requirements
When a California contractor must carry workers’ compensation insurance, when an exemption is allowed and how to file proof with CSLB.
Quick answer
If you have even one employee, you must carry workers’ compensation insurance and file proof with CSLB. Contractors with no employees can file an exemption instead, except C-8, C-20, C-22, C-39 and C-49 contractors, who must carry coverage whether or not they have employees. A license qualified by an RME cannot use an exemption.
Who Must Carry Coverage
- Any contractor with one or more employees
- All active C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement, C-39 Roofing and C-49 Tree and Palm contractors, even with no employees
- Licenses qualified by a Responsible Managing Employee
How to Show Proof
- A Certificate of Workers’ Compensation Insurance from an insurer licensed in California, with CSLB listed as certificate holder, or
- A Certification of Self-Insurance from the Department of Industrial Relations
Insurers can file certificates electronically with CSLB. Licensees must also list up to three workers’ compensation classification codes with the highest payroll on the policy.
Filing an Exemption
If you have no employees and are not in one of the classifications above, file a signed Exemption from Workers’ Compensation form. If you later hire someone, the exemption is no longer valid and CSLB must receive proof of coverage within 90 days of the hire.
Common Certificate Mistakes
- Wrong business name
- Wrong insurance company name
- Wrong policy number
- CSLB not listed as certificate holder
- Missing or invalid signature
- Missing license or application number
Inactive Licenses
No proof of coverage or exemption is required while a license is inactive. You must provide it again to reactivate. See reactivating a license.
Content reviewed against CSLB sources: November 2026
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California Contractor Workers’ Compensation Requirements: FAQs
Can I file an exemption if I only use subcontractors?
If you truly have no employees, most classifications can file an exemption. Be careful: workers you treat as subcontractors may legally be employees, and then coverage is required.
Why do roofers need workers’ comp without employees?
California law requires C-39 Roofing, C-8 Concrete, C-20 HVAC, C-22 Asbestos Abatement and C-49 Tree and Palm contractors to carry coverage regardless of employees.
What happens if my workers’ comp lapses?
An active license without valid coverage or exemption on file can be suspended, and working while suspended is unlicensed work.