What the sources say
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If a contractor with an exemption hires an employee, the exemption form on file is no longer valid, and proof of workers' compensation insurance coverage must be submitted.
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Proof of workers' compensation insurance coverage must be received at CSLB's Headquarters within 90 days of hiring an employee.
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An exemption from workers' compensation becomes invalid if the contractor employs anyone subject to California's workers' compensation laws or obtains a C-8, C-20, C-22, C-39, or C-61/D-49 license.
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If an exempt contractor hires an employee subject to California's workers' compensation laws, they must obtain a Certificate of Workers’ Compensation Insurance and submit it to CSLB within 90 days of its effective date, continuously maintaining coverage.
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Failure to comply with workers' compensation requirements after an exemption becomes invalid is grounds for disciplinary action.
General information from the public sources we cite, not legal or insurance advice. Rules change and depend on your facts: confirm with the agency named in each source.