{
  "url": "https://scopeofcover.com/requirements/ca/workers-comp-sole-owner-no-employees",
  "title": "California Workers' Comp Exemption for Contractors",
  "template": "requirements",
  "published": "2026-10-05",
  "updated": "2026-10-05",
  "last_verified": "2026-10-05",
  "answer": "California contractors with no employees can be exempt from carrying workers’ compensation insurance by filing a form with the CSLB. The exemption becomes invalid upon hiring an employee. Scope of Cover found that proof of insurance must be sent to the CSLB within 90 days of hiring. Failure to maintain required coverage will result in license suspension.",
  "editor": {
    "name": "Eric Dawson",
    "title": "Editor"
  },
  "publisher": "scopeofcover.com",
  "claims": [
    {
      "claim_id": "ca-employer-workers-comp-mandate",
      "statement": "All California employers must provide workers' compensation benefits to their employees as per California Labor Code Section 3700.",
      "value": "California Labor Code Section 3700",
      "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-contractor-exemption-invalid-with-employees",
      "statement": "If a contractor with an exemption hires an employee, the exemption form on file is no longer valid, and proof of workers' compensation insurance coverage must be submitted.",
      "value": "proof of workers' compensation insurance coverage",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Upon employing anyone in a manner that is subject to the workers' compensation laws of California, the exemption form on file will no longer be valid and you will be required to obtain and submit proof of workers' compensation insurance coverage.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-contractor-proof-of-coverage-deadline-after-hiring",
      "statement": "Proof of workers' compensation insurance coverage must be received at CSLB's Headquarters within 90 days of hiring an employee.",
      "value": "90",
      "unit": "days",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "This proof must be received at CSLB's Headquarters within 90 days of the hire.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-cslb-no-exemption-rme",
      "statement": "Contractors cannot file an Exemption from Workers' Compensation form if their license is qualified by a Responsible Managing Employee (RME).",
      "value": "Responsible Managing Employee (RME)",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "You cannot file an Exemption from Workers' Compensation form if any of the following conditions exist. You employ anyone in a manner that is subject to California workers' compensation laws. Your license is qualified by a Responsible Managing Employee (RME).",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-license-suspension-for-no-wc",
      "statement": "Failure to maintain workers' compensation insurance coverage will result in the suspension of the license.",
      "value": "license suspension",
      "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-wc-classification-codes-filing",
      "statement": "Licensees must list up to the top three workers' compensation classification codes for which the highest estimated payroll is reported on their policy, as per BPC 7125.6.",
      "value": "up to three classification codes",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Per BPC 7125.6, Licensees must also, list up to the top three workers' compensation classification codes for which the highest estimated payroll is reported on your policy.",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-cslb-wc-exemption-form-availability",
      "statement": "Contractors can download or order Form #32 to provide CSLB with a signed exemption.",
      "value": "Form #32",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.cslb.ca.gov/contractors/maintain_license/workers_compensation.aspx",
      "quote": "Provide CSLB with a signed exemption, certifying that they have no employees at this time (Download Form or Order Form #32)",
      "retrieved": "2026-10-02"
    },
    {
      "claim_id": "ca-wc-premium-regulation",
      "statement": "Workers' compensation insurance premium rates are not regulated by the state of California.",
      "value": "not regulated",
      "as_of": "2026-10-02",
      "jurisdiction": "CA",
      "source_url": "https://www.dir.ca.gov/dwc/faqs.html",
      "quote": "Workers' compensation insurance premium rates are not regulated by the state.",
      "retrieved": "2026-10-02"
    }
  ],
  "sources": [
    {
      "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"
    },
    {
      "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"
    }
  ],
  "license": "CC BY 4.0. Attribute to Scope of Cover (https://scopeofcover.com/)."
}