The California contractors board will require all contractors in the state to carry workers’ compensation insurance, even if they have no employees.
Governor Newsom signed Senate Bill 216 into law in September 2022, and it took effect on January 1, 2023. However, it faces some continued opposition.
Licensed contractors impacted by the law
Before the bill became law, California workers’ comp rules only required roofing contractors to carry workers’ comp insurance without employees. As of today, the following contractors must also adhere to that requirement in 2023:
- Concrete contractors, C-8
- Tree service contractors, D-49
- Heating, ventilation and air conditioning contractors, C-20
- Asbestos abatement contractors, C-22
Anyone with an active license for the classifications listed had to provide proof of workers’ comp coverage when applying for renewal of their license. Anyone who did not require a license renewal before June 30, 2023, still had to present proof of insurance with the CSLB by July 1.
Deadline for the bill
The second part of Senate Bill 216 extends the new workers’ comp requirement to all contractors. Any contractor excluded from the list above will need to present proof of insurance by January 1, 2026.
Those in opposition to the bill claim it will create a large disadvantage for some contractors on the market. Business costs are already high in the industry, and they fear this will place heavy financial pressure on struggling businesses.
The CSLB believes this change will protect the public and even the score for contractors already abiding by workers’ comp laws in the state.