What the sources say
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California law mandates that all employers, including those in the construction sector, provide workers' compensation insurance, even if they have only one employee.
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Workers' compensation coverage must be continuous in California.
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Failure to maintain workers' compensation insurance coverage will lead to the suspension of a contractor's license.
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Failing to have workers' compensation coverage is a criminal offense in California.
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If the Division of Labor Standards Enforcement determines an employer lacks workers' compensation coverage, they will issue a stop order prohibiting the use of employee labor until coverage is obtained.
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The state can issue penalties of up to $100,000 against employers who are illegally uninsured for workers' compensation.
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If an employee is injured or becomes sick due to work and the employer is uninsured, the employer is responsible for paying all related bills.
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.