January worker’s comp requirement…………delayed to 2028
Due to the recent passage of SB 1455, the universal requirement for all licensees to hold workers’ compensation insurance has been delayed until January 1, 2028.
Furthermore, SB 1455 has reinstated the exemption for contractors who have no employees. The Contractors State License Board (CSLB) is now directed to establish a process for verifying eligibility for this exemption.
Summary of the Current Law:
SB 216 (2022) originally required WC insurance for four additional trade classifications and, as of January 1, 2026, for all licensees—even with no employees.
SB 1455 (2024) has now:
Delayed the universal requirement for all licensees to January 1, 2028.
Reinstated the exemption for contractors with no employees.
Directed the CSLB to develop a process to verify who is eligible for this exemption.
What This Means For You:
If you are a contractor with no employees, you are currently exempt from the requirement to carry workers’ compensation insurance. The CSLB is working on the system to verify this exemption status in the future. We will update you as more information from the CSLB becomes available.
If you would like to see the full SB1455 law for back up reference, please click on the link HERE