California workers’ comp exemption rules: what a GC should know

What the exemption is

It’s a form the contractor files with the California Contractors State License Board (CSLB). It says, under penalty of perjury, that the contractor doesn’t employ anyone in a way that needs workers’ comp. It’s for one-person operations. It isn’t a loophole for a crew.

Who can’t file one

• Concrete contractors (C-8).
• HVAC contractors (C-20).
• Asbestos abatement contractors (C-22).
• Roofing contractors (C-39).
• Tree service contractors (C-61/D-49).
• Any license run through a responsible managing employee (RME).

These have to carry a workers’ comp policy.

Why it matters to a GC

• If a sub says “I’m exempt” but has helpers on your job, the exemption stops applying. They need coverage.
• If a sub in one of the trades above shows an exemption, something’s wrong. Ask for a policy.
• The license board says coverage has to be continuous, and failing to keep it suspends the license. Work done during a suspension is unlicensed activity.

What to collect

1. A certificate with a workers’ comp policy, or proof of the exemption.
2. The sub’s license number. Check it.
3. A note of how many people will work your job.

Sources: CSLB workers’ comp requirements. Laws and agency rules change. Check the current version.

Not legal or insurance advice. This is general information. Your contract, your state and your policy decide what applies to you. Ask your broker or attorney.

A simple routine on every job

1. Before the sub starts, get the certificate and workers’ comp proof, or the exemption paperwork your state allows.
2. Check whether the sub’s license class is one that cannot file a workers’ comp exemption.
3. Save a copy with the date you checked and who checked.
4. Put every policy end date on a calendar.
5. Ask a local attorney or broker about anything unusual.