{
  "url": "https://scopeofcover.com/requirements/ca/workers-comp-contractors",
  "title": "California Workers Compensation for Contractors",
  "template": "requirements",
  "published": "2026-10-03",
  "updated": "2026-10-03",
  "last_verified": "2026-10-03",
  "answer": "California contractors must carry workers' compensation insurance if they have even one employee. Scope of Cover found that state penalties for being uninsured can reach $100,000. Coverage must be continuous to avoid license suspension. Failing to carry required coverage is a criminal offense under the California Labor Code.",
  "editor": {
    "name": "Eric Dawson",
    "title": "Editor"
  },
  "publisher": "scopeofcover.com",
  "claims": [
    {
      "claim_id": "ca-contractor-workers-comp-requirement",
      "statement": "California law mandates that employers, including those in the construction industry, must carry workers' compensation insurance, even if they have only one employee.",
      "value": "one employee",
      "unit": "employee",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "California law requires that employers, including those in the construction industry, carry workers' compensation insurance, even if they have only one employee.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-workers-comp-coverage-continuity",
      "statement": "Workers' compensation coverage must be continuous.",
      "value": "continuous",
      "unit": "coverage",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Workers' compensation coverage must be continuous.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-workers-comp-failure-to-maintain-suspension",
      "statement": "Failure to maintain workers' compensation insurance coverage will lead to the suspension of the license.",
      "value": "license being suspended",
      "unit": "result",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Failure to maintain workers' compensation insurance coverage will result in the license being suspended.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-workers-comp-suspended-license-unlicensed-work",
      "statement": "Any work conducted while the license is suspended due to lack of workers' compensation coverage is considered unlicensed, and disciplinary action may be taken.",
      "value": "unlicensed",
      "unit": "work status",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Any work performed while the license is suspended is considered to be unlicensed and disciplinary action can be taken against you.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-all-employers-workers-comp-requirement",
      "statement": "All California employers are mandated to provide workers' compensation benefits to their employees under California Labor Code Section 3700.",
      "value": "California Labor Code Section 3700",
      "unit": "section",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "All California employers must provide workers’ compensation benefits to their employees under California Labor Code Section 3700.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-uninsured-employer-criminal-offense",
      "statement": "Failing to have workers' compensation coverage is a criminal offense, as outlined in Section 3700.5 of the California Labor Code.",
      "value": "criminal offense",
      "unit": "offense",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "Failing to have workers' compensation coverage is a criminal offense. Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of not less than $10,000 or imprisonment in the county jail for up to one year, or both.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-illegally-uninsured-employer-state-penalties",
      "statement": "The state can issue penalties up to $100,000 against illegally uninsured employers.",
      "value": "100000",
      "unit": "USD",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-uninsured-employer-responsible-for-injury-costs",
      "statement": "If an employee sustains a work-related injury or illness and the employer is uninsured, the employer is liable for all costs associated with that injury or illness.",
      "value": "all bills related to the injury or illness",
      "unit": "costs",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "If an employee gets hurt or sick because of work and you are not insured, you are responsible for paying all bills related to the injury or illness.",
      "retrieved": "2026-10-02"
    }
  ],
  "sources": [
    {
      "title": "CSLB: Workers' compensation insurance for licensees",
      "url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "publisher": "Contractors State License Board",
      "retrieved": "2026-10-02"
    },
    {
      "title": "California DIR: Workers' compensation FAQ",
      "url": "https://www.dir.ca.gov/dwc/faqs.html",
      "publisher": "California Division of Workers' Compensation",
      "retrieved": "2026-10-02"
    }
  ],
  "license": "CC BY 4.0. Attribute to Scope of Cover (https://scopeofcover.com/)."
}