SB 216: CA Contractors Need Workers Comp by 2028

Starting January 1, 2028, nearly every California contractor license will need an active workers’ compensation policy on file with the CSLB, even if the contractor has no employees. The rule comes from SB 216. It was originally set to start in 2026, and SB 1455 pushed it to 2028. Until then, most solo contractors can still file a certificate of exemption, but five license classes already cannot.

Who Already Needs Workers Comp With No Employees

According to the CSLB, these classifications must carry workers’ compensation today, regardless of headcount:

• C-8 Concrete
• C-20 Warm-Air Heating, Ventilating and Air-Conditioning (HVAC)
• C-22 Asbestos Abatement
• C-39 Roofing
• C-61/D-49 Tree Service

You also cannot use the exemption if your license is qualified by a Responsible Managing Employee, or if anyone works for you in a way California workers’ comp law covers. A part-time helper paid in cash counts.

What Changes in 2028

On January 1, 2028, the no-employee exemption ends for nearly every license class. A solo painter, flooring installer, or general contractor who has relied on the exemption will need a policy to keep the license active. A lapse in required coverage leads to license suspension, and work done while suspended is treated as unlicensed work.

Enforcement Is Already Tightening

SB 291, which took effect January 1, 2026, significantly increased penalties for workers’ compensation violations. It also directs the CSLB to build a new process for verifying exemption eligibility. If your exemption is out of date because you have since hired someone, now is the time to fix it.

What a Policy Looks Like for a Solo Contractor

Workers’ comp is priced per $100 of payroll by class code. For a business with no employees, the key question is how the owner is treated, which depends on how the business is set up:

• Sole proprietors are generally not covered by their own policy unless they choose to include themselves
• Partners and LLC members have their own inclusion and exclusion rules
• Corporate officers who meet ownership requirements can often exclude themselves
• Every carrier applies a minimum premium, so there is a floor on the cost

Because of those rules, the right policy for a one-person shop is often structured very differently from a policy for a crew. A broker who writes small contractor accounts can usually find a compliant setup without paying for coverage you do not need.

Why It Pays to Buy Before the Deadline

• Many general contractors and property managers already require a workers comp certificate from every sub
• Carriers will see a wave of first-time small accounts in late 2027
• A year or two of clean policy history helps future pricing
• You are covered the moment you bring on a helper, instead of relying on an exemption that may no longer be valid

What to Do Now

1. Look up your license on the CSLB website and check whether a policy or an exemption is on file
2. If you hold C-8, C-20, C-22, C-39, or C-61/D-49 and show an exemption, get a policy now
3. If you have hired anyone since filing your exemption, get coverage now
4. Everyone else: get a quote in the coming months so you know your real cost before 2028