Quick answer
SB 216 set California on a path to require workers' comp for every licensed contractor, even those with no employees. Certain trades — Concrete (C-8), HVAC (C-20), Asbestos Abatement (C-22), and Tree Service (D-49) — have been required since 2023, and Roofing (C-39) even earlier. SB 1455 (2024) pushed the universal all-contractors deadline from January 1, 2026 to January 1, 2028, with a CSLB exemption-verification process beginning in 2027. Any contractor with employees must carry coverage now regardless of classification.
Last updated: July 2026 · Reviewed by Michael Kohanfars, Principal · Wellington Partners Insurance Services (CA Lic #0G89296)
California is phasing in a workers' comp requirement for every licensed contractor. Here's who needs coverage now, what changed with the 2028 extension, and how to comply without overpaying.
If you hold a California contractor's license, the workers' comp rules are changing — and the timeline has already shifted once. This guide lays out exactly who needs coverage today, what the 2028 universal mandate means, and how to comply without getting stuck in an overpriced policy. For how contractor comp is priced generally, see our contractors workers' comp page and the complete California guide.
This is general information, not legal advice. Confirm your specific obligations with the CSLB or a licensed professional.
As of 2026, you must have a workers' comp policy on file with the CSLB if any of these apply:
If none of those apply — you're a solo operator in another classification with no employees — you can currently still file a certificate of exemption. But that window is closing, and the verification process arrives in 2027.
Senate Bill 216, signed in 2022, set California on a path to require workers' comp for all licensed contractors, regardless of whether they have employees. It phased in: the four trades above starting in 2023, with a universal mandate for every remaining classification originally set for January 1, 2026. Before SB 216, contractors without employees generally weren't required to carry coverage.
Senate Bill 1455 (2024) extended the universal deadline from January 1, 2026 to January 1, 2028, giving the CSLB time to build a proper exemption-verification system. Two things are important here. First, the extension does not mean contractors can ignore the requirement until 2028 — the 2023 trades, roofers, and anyone with employees still must carry coverage now, and 2026–2027 is effectively an enforcement ramp-up with stricter renewals. Second, a new exemption-verification process (sworn statements and potential audits) is scheduled to begin in 2027 for contractors claiming a no-employee exemption.
When a contractor with no employees is required to carry coverage, the policy is written on $0 payroll — often called a "ghost policy." It satisfies the CSLB proof-of-coverage requirement but generally does not cover the owner unless the owner is specifically elected onto the policy. Because there's no payroll to rate, the cost is driven by the insurer's minimum premium, which varies significantly by carrier and by license classification — from a few hundred dollars to several thousand. This is exactly where contractors overpay: a high-minimum carrier or a wrong class code can cost far more than necessary. A broker who works with multiple carriers can find the lowest legitimate minimum for your classification.
The narrow exemptions are for contractors who genuinely have no employees (and certain joint ventures filing a certificate of exemption). Today you can file a no-employee exemption with the CSLB. Starting in 2027, the CSLB is set to require a formal verification of those exemptions — including sworn statements and possible audits — so a casually claimed exemption may not survive scrutiny. Note that the C-8, C-20, C-22, C-39, and D-49 classifications cannot claim a no-employee exemption regardless of the timeline.
Wellington Partners places contractor workers' comp across many California carriers and knows which ones offer the lowest minimums for each classification. If you need a policy to keep your license compliant — with or without employees — we'll get you covered without overpaying.
It depends on your classification and the year. Since 2023, C-8, C-20, C-22, and D-49 contractors (and C-39 roofers) must carry it even with no employees. Under SB 216 as amended by SB 1455, the requirement extends to all licensed contractors by January 1, 2028.
Yes. SB 1455 (2024) moved the universal all-contractors deadline from January 1, 2026 to January 1, 2028, and directed the CSLB to create an exemption-verification process beginning in 2027.
A ghost policy is a workers' comp policy written on $0 payroll for a contractor with no employees. It satisfies the CSLB proof-of-coverage requirement but generally does not cover the owner unless the owner is specifically elected onto the policy.
Because there's no payroll to rate, cost is driven by the insurer's minimum premium, which varies by carrier and license classification — from a few hundred dollars to several thousand. Shopping multiple carriers is the way to find the lowest legitimate minimum.
Failure to maintain required workers' comp coverage can lead the CSLB to suspend your license, which stops you from legally working or bidding. Coverage must be on file with the CSLB to keep your license active.
For now, a solo operator in a non-mandated classification can file a no-employee exemption with the CSLB. Starting in 2027, a formal verification process (sworn statements and possible audits) is scheduled, and by 2028 the universal mandate takes effect.
Whether you have employees or need a $0-payroll ghost policy, we'll shop multiple California carriers to keep your CSLB license compliant — without overpaying on minimums.