State requirements

California Contractor Workers' Compensation Exemption Rules

A California contractor can be exempt from workers' compensation by certifying they have no employees. Certain license types and business structures are…

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Short answer

California contractors can file for a workers' compensation exemption if they certify they do not employ anyone in a manner subject to state workers' compensation laws. Scope of Cover found the exemption is not available for license classifications C-8, C-20, C-22, C-39, and C-61/D-49. The exemption is filed by submitting a form to the Contractors State License Board (CSLB).

#How to File for a Workers' Comp Exemption

To be exempt from workers' compensation, a contractor must submit a form to the Contractors State License Board (CSLB). The form requires certifying under penalty of perjury that they do not employ anyone in a manner subject to California's workers' compensation laws.

#Who Is Not Eligible for the Exemption?

The exemption is not available for all contractors. Joint Venture entities are excluded from the exemption provision.

Licensees should also not submit the form if they have an inactive license. The same applies if their license qualifier is a Responsible Managing Employee (RME).

#Which License Classifications Are Excluded?

Contractors holding certain license classifications cannot receive the workers' compensation exemption.

License Classifications Ineligible for Workers' Compensation Exemption
ClassificationDescription
C-8Concrete
C-20Warm-Air Heating, Ventilating, and Air-Conditioning
C-22Asbestos Abatement
C-39Roofing
C-61/D-49Tree Service

Frequently asked questions

Can a solo contractor get an exemption from workers' comp in California?

Yes, a licensee can file for an exemption by certifying to the CSLB that they do not employ anyone in a manner subject to California's workers' compensation laws.

Which form do I use to file for a workers' comp exemption?

The exemption is filed by submitting a form to the Contractors State License Board (CSLB) on which you certify your employee status under penalty of perjury.

Are any contractor classifications required to carry workers' compensation even with no employees?

Yes, the exemption is not available for contractors with licenses in the C-8 Concrete, C-20 Warm-Air Heating, Ventilating, and Air-Conditioning, C-22 Asbestos Abatement, C-39 Roofing, and C-61/D-49 Tree Service classifications.

Can a joint venture get a workers' compensation exemption?

No, Joint Venture entities are excluded from the workers' compensation exemption provision.

Can a contractor with an RME file for a workers' comp exemption?

No, the exemption form should not be submitted if the license qualifier is a Responsible Managing Employee (RME).

Sources

  1. CSLB: Exemption from Workers' Compensation Insurance (form 13L-50)Contractors State License Board · retrieved

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