Recent updates to the Contractors State License Law impact California contractors, requiring a clear understanding of Workers’ Compensation Insurance obligations to maintain your license. Whether you need a standard policy or a Workers’ Compensation Ghost Policy for contractors with no employees, compliance is critical to avoid penalties. The Contractors Resource Center is your trusted partner for tailored insurance solutions. Here’s what California contractors need to know about current and upcoming requirements.
Current Requirements (Extended Until January 1, 2028)
California contractors must maintain a valid Certificate of Workers’ Compensation Insurance, a Certification of Self-Insurance, or a certificate of exemption if you have no employees. This applies to most licensed contractors, with exceptions for certain classifications.
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Who qualifies for an exemption: You can file a certificate of exemption (often called a Workers’ Compensation Ghost Policy) if you have no employees and meet specific criteria. However, you cannot file an exemption if:
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You employ anyone subject to California workers’ compensation laws.
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Your license is qualified by a Responsible Managing Employee (RME).
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You hold a C-8 Concrete, C-20 Warm-Air Heating, Ventilating and Air-Conditioning, C-22 Asbestos Abatement, C-39 Roofing, or C-61/D-49 Tree Service classification.
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Exemption process: Eligible contractors must complete and submit the exemption form to CSLB Headquarters to secure a Ghost Policy.
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Consequences of non-compliance: Failure to file proper certification can lead to disciplinary action by the Contractors State License Board (CSLB), including license suspension or removal of classifications. Qualifiers face potential criminal penalties.
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Extension details: These rules, originally set to change on January 1, 2026, are extended until January 1, 2028, giving California contractors more time to secure Workers’ Compensation Insurance or a Ghost Policy.
New Requirements Starting January 1, 2028
Starting January 1, 2028, Workers’ Compensation Insurance requirements for California contractors become stricter:
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Mandatory coverage: All licensed contractors, regardless of classification, must have Workers’ Compensation Insurance unless exempt as a joint venture with no employees and a filed certificate of exemption.
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Exemption verification: By January 1, 2027, the CSLB will implement a process to verify exemption eligibility, requiring proof of no employees for a Workers’ Compensation Ghost Policy.
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Steps to stay compliant:
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Obtain or renew coverage: Secure a Workers’ Compensation Insurance policy or Ghost Policy from a licensed provider like The Contractors Resource Center.
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File with the CSLB: Submit your Certificate of Workers’ Compensation Insurance or exemption form promptly.
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Stay informed: Monitor CSLB updates for the 2027 verification process.
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Non-compliance risks license suspension, fines, or lost bidding opportunities on public works projects. Protect your business by acting now.
Why Compliance Matters for California Contractors
Staying compliant with Workers’ Compensation Insurance requirements ensures worker safety, protects your license, and maintains your ability to bid on projects. A Workers’ Compensation Ghost Policy is a cost-effective solution for California contractors with no employees, but you must meet CSLB criteria to qualify.
Get Your Workers’ Compensation Insurance with The Contractors Resource Center
Don’t risk your license! The Contractors Resource Center specializes in Workers’ Compensation Insurance and Ghost Policies for California contractors. We simplify compliance, offering tailored policies to meet CSLB requirements. Whether you need coverage for employees or a Workers’ Compensation Ghost Policy for your solo operation, we’ve got you covered.
Contact The Contractors Resource Center today to get a quote or clarify your exemption status. Keep your license active and stay ahead of the January 1, 2028, deadline!
Get Your Workers’ Comp Consultation and Quote Today: CLICK HERE