The Contractors State License Board (CSLB) wants the public to know that starting January 1, 2023, concrete (C-8), HVAC (C-20), asbestos abatement (C-22), and tree service (D-49) contractors will be required to have workers’compensation insurance, regardless of whether they have employees.

The new requirement is the result of CSLB-sponsored Senate Bill 216, which Governor Gavin Newsom signed into law on September 30, 2022. The bill also requires that all contractors – with or without employees – will need to have workers’ compensation insurance by January 1, 2026.

Currently, only C-39 Roofing contractors are required to have workers’ compensation insurance, regardless of whether they have employees. CSLB research confirms that many of the approximate 50 to 60 percent of licensed contractors who currently claim an exemption to workers’ compensation insurance do use employees.

Competitive Disadvantage

This problem creates an unfair competitive disadvantage for law-abiding contractors who are subject to higher business costs and puts employees and the public at risk for workplace injuries.

CSLB hopes to protect the public and level the playing field for law-abiding California contractors by requiring more contractors to carry workers’ compensation insurance starting in 2023 and eventually all of the state’s contractors by 2026.

Consumers can verify a contractor’s license status and whether a contractor has workers’ compensation insurance by checking on the CSLB website. 

About CSLB: CSLB operates under the umbrella of the Department of Consumer Affairs and licenses and regulates nearly 285,000 contractors in California. In 2021, CSLB helped consumers recover more than $44 million in ordered restitution. 

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By Michael Prlich, ECA President Email: [email protected]