As of 19 October 2026. Every legal fact on this page links to the California statute it comes from. California only.
The short version: A California contractor with no employees can still file a workers' comp exemption with CSLB today, unless the license holds a C-8, C-20, C-22, C-39 or D-49 classification (Business and Professions Code section 7125(b)). From 1 January 2028 that changes: every licensee will need a workers' comp certificate or self-insurance certification, and the only exemption left is for a joint venture with no employees. SB 216 first set that date at 1 January 2026; SB 1455 moved it to 1 January 2028.
TL;DR
- SB 216 (Stats. 2022, ch. 978) originally required every CSLB licensee to carry workers' comp from 1 January 2026. SB 1455 (Stats. 2024, ch. 485, approved 22 September 2024) delayed that to 1 January 2028. (SB 216, SB 1455)
- Until then, a licensee with no employees can file an exemption statement, except a license holding C-8 concrete, C-20 HVAC, C-22 asbestos abatement, C-39 roofing or D-49 tree service, which must carry workers' comp regardless. (section 7125(b))
- From 1 January 2028, only a joint venture with no employees can be exempt. (section 7125, version operative 1 January 2028)
- SB 291 (Stats. 2025, ch. 455), in effect since 1 January 2026, did not move any date. It raised the penalties for employing workers without coverage: a minimum of $10,000 per violation for a sole owner and $20,000 for an entity. (section 7125.4)
- A GC's subcontract can require a workers' comp certificate whatever the statute says.
Definition: what "solo subcontractor with no employees" means here
A solo subcontractor with no employees is a licensed contractor who performs all work personally, hires no W-2 staff, and pays no one who would count as an employee under California law. In insurance terms, this is the person most often asked for a ghost policy: a workers' comp policy that excludes the owner and covers no payroll, usually bought to satisfy a GC's certificate requirement. Whether the law requires you to carry coverage and whether your GC will accept your paperwork are two different questions, and this page answers both.
Does California require workers' comp for a solo sub with no employees?
As of 19 October 2026: not for most licenses, yes for five classifications, and yes for almost every license from 1 January 2028. Today section 7125 lets a licensee with no employees file a statement with CSLB, on CSLB's form, certifying that it does not employ anyone in a way that makes it subject to the workers' comp laws. A license that holds C-8, C-20, C-22, C-39 or D-49 cannot use that exemption. (section 7125(b))
This is the part many pages get wrong. SB 216 did set 1 January 2026 as the date every licensee would need coverage, and many pages still repeat it. SB 1455 moved both the repeal of the current section 7125 and the start of the new one to 1 January 2028, so nothing changed for solo contractors outside those five classifications on 1 January 2026. (SB 1455, chaptered text)
| Your situation | Workers' comp required? | Authority |
|---|---|---|
| Solo, no employees, license holds C-8 / C-20 / C-22 / C-39 / D-49 | Yes, today | Business and Professions Code § 7125(b)(2) |
| Solo, no employees, any other classification, before 1 Jan 2028 | No, if you file the exemption statement with CSLB | Business and Professions Code § 7125(b)(1) |
| Any licensee on or after 1 Jan 2028, except a joint venture with no employees | Yes | § 7125 as added by SB 216 and amended by SB 1455, operative 1 Jan 2028 |
| You hire even one employee, any date | Yes | Labor Code § 3700; penalties under Business and Professions Code § 7125.4 |
What this means in practice
If you hold a solo license outside the five classifications, you can stay exempt until 1 January 2028, as long as you truly have no employees. Plan for that date now: from 1 January 2028, CSLB needs a workers' comp certificate or self-insurance certification on file to issue, reinstate, reactivate, renew or keep the license. SB 291 also requires CSLB to check exemption claims through an audit, proof or other evidence, and to report its proposed process to the Legislature by 1 January 2027. (SB 291) Separately, a GC can ask for a certificate today.
Honest limitation — read before you decide
This guide covers state licensing requirements only. Two cautions:
- Don't buy a policy before confirming what your GC's subcontract exhibit actually requires. Certificate wording, waiver-of-subrogation clauses, and minimum limits vary by GC and often exceed the statutory baseline.
- General contractors may impose stricter requirements regardless of law, and have always been able to reject an otherwise-exempt sub.
Consult a California-licensed insurance professional before selecting or declining coverage. This page is informational and is not legal advice.
Sources
Every legal statement above is taken from these primary sources, each read on 19 October 2026. Laws change: check the source before you rely on a date or an amount.
- Business and Professions Code section 7125 (current version, and the version operative 1 January 2028). Read 19 October 2026.
- Business and Professions Code section 7125.4 (as amended by SB 291, Stats. 2025, ch. 455). Read 19 October 2026.
- SB 216 (Dahle), Stats. 2022, ch. 978, chaptered text. Read 19 October 2026.
- SB 1455 (Ashby), Stats. 2024, ch. 485, chaptered text, approved 22 September 2024. Read 19 October 2026.
- SB 291 (Grayson), Stats. 2025, ch. 455, chaptered text, approved 7 October 2025. Read 19 October 2026.
- California Labor Code section 3700. Read 19 October 2026.
- CSLB, Workers' Compensation Requirements. Read 19 October 2026.