Short version: starting January 1, 2028, every contractor licensed by the California Contractors State License Board (CSLB) must have a workers compensation policy on file, including owners with no employees. The exemption most contractors use today goes away. CSLB reported in 2024 that about 118,000 licensees, roughly half of all licenses, had an exemption on file.
Get a workers comp quote or call 888-391-5981.
What changed
- 2023: SB 216 required concrete (C-8), HVAC (C-20), roofing (C-39), tree service (D-49) and asbestos abatement (C-22) licensees to carry workers comp even with no employees.
- 2026 → 2028: SB 216 extended the requirement to all classifications on January 1, 2026. SB 1455 (2024) pushed that date to January 1, 2028.
Who is affected
Any active CSLB license with a Certificate of Exemption from workers compensation on file, including sole owners, partnerships and corporations whose only workers are the owners or officers. If you already carry workers comp for employees, you’re likely set, but confirm the policy covers the owners as required.
What happens if you don’t have it
A license without a valid workers comp certificate or approved exemption can be suspended. Working while suspended can cost you jobs, payments and your ability to bid public work.
How to get ready
- Check your CSLB record. Look up your license and see whether an exemption is on file.
- Get quoted early. Pricing depends on your classification, payroll (including owner payroll rules) and claims history. Carriers will be busy in late 2027.
- Ask about owner coverage. California has specific rules for including or excluding owners and officers. We’ll explain your options.
- Line up the filing. Your insurer reports coverage to CSLB. We confirm it shows on your license before your renewal date.
Which trades are hit hardest
One-person shops in trades that never needed workers comp: painters, electricians, plumbers, landscapers, welders and ornamental iron, flooring, drywall, cabinet and handyman-style general building licenses. See all contractor coverage.
Frequently asked questions
Do I need workers comp in 2028 if I have no employees?
Yes, if you hold an active CSLB license. Starting January 1, 2028, all licensed contractors must carry workers compensation, regardless of employees.
Can I keep my exemption until my license renews?
Plan on having coverage in place by January 1, 2028. Check CSLB guidance as the date approaches and talk to us early so there’s no gap.
How much will it cost a one-person contractor?
It varies by trade classification, payroll and carrier. Some carriers have minimum premiums for small policies. We compare options, including State Fund and private carriers.
Will this law change again?
It was already delayed once, from 2026 to 2028. We’ll update this page if the Legislature changes it again. The safest plan is to budget for coverage now.