When does every California contractor need workers' comp? (2028, not 2026)
SB 216 phased in a workers'-comp mandate, but SB 1455 moved the all-classifications deadline to 1 January 2028. Here is what applies today, by classification, with the CSLB numbers.
Today, workers' compensation is mandatory regardless of employees for roofing (C-39) and for four classifications phased in by SB 216 — C-8 concrete, C-20 HVAC, C-22 asbestos and D-49 tree service. Every other classification may still file a no-employees exemption until 1 January 2028, a date SB 1455 (Ch. 485, Stats. 2024) moved back from 1 January 2026. CSLB must have an exemption verification process running by 1 January 2027.
If you sell commercial P&C in California you have probably heard that "all contractors need workers' comp as of 2026." That was the original plan. It is not the current law, and the difference matters when you are deciding which contractors to call.
What did SB 216 actually change?
SB 216 (2022) created a phased mandate. From 1 January 2023, four classifications had to carry workers' compensation insurance even with no employees:
| Classification | Trade |
|---|---|
| C-8 | Concrete |
| C-20 | Warm-air heating, ventilating and air-conditioning (HVAC) |
| C-22 | Asbestos abatement |
| D-49 | Tree service |
That part is in force and has been for over three years. The second phase — extending the requirement to every licensed contractor — was originally set for 1 January 2026.
Why isn't the all-contractor mandate in effect?
Because a later bill moved it. SB 1455 (Ashby, Chapter 485, Statutes of 2024) delayed the all-classifications requirement to 1 January 2028. It also directed CSLB to establish a process to verify that a licensee claiming the no-employees exemption is actually eligible — including an audit or other proof — and to report those procedures to the Legislature by 1 January 2027.
So the sequence an agent should have in mind:
- Now → 31 Dec 2026 — exemption available to most classifications, self-certified.
- 1 Jan 2027 — CSLB exemption verification process must be in place. Expect scrutiny of contractors who have coasted on an exemption.
- 1 Jan 2028 — the replacement Business and Professions Code §7125 takes effect and the no-employees exemption disappears, leaving only a narrow joint-venture carve-out.
Which contractors can never claim an exemption?
Roofers. A C-39 roofing contractor cannot file a workers'-comp exemption at all under B&P §7125 — that predates SB 216 and has nothing to do with it. If a roofer's policy lapses, the licence is exposed immediately.
This shows up in the data with unusual clarity. Share of active licences holding a workers'-comp exemption, from the CSLB Master List dated 12 August 2026:
| Classification | Active licences | Holding an exemption |
|---|---|---|
| C-39 Roofing | 5,485 | 0.0% |
| C-20 HVAC | 11,475 | 0.1% |
| C-8 Concrete | 5,286 | 0.2% |
| D-49 Tree service | 2,675 | 0.3% |
| B General building | 102,961 | 57.0% |
| C-10 Electrical | 27,902 | 50.3% |
| C-33 Painting | 15,378 | 52.7% |
Across all 232,052 active licences, 48.8% hold an exemption. That is not a data lag — it is the law working as written.
What does this mean for prospecting right now?
It means the mandated classes are a materially better list than a statewide sweep. When a C-39 or C-20 contractor's policy expires, they cannot simply file an exemption and move on; they have to replace the coverage or put the licence at risk. When a class B general building contractor's policy expires, they may legitimately have no employees and no obligation.
If you are working a lapse list today, sort by classification before you sort by anything else.
What changes for agents before 2028?
Two things worth diarising:
- 1 January 2027. Once CSLB has to verify exemptions, some share of those 113,000 exempt licences will not survive scrutiny — contractors who do use labour but self-certified otherwise. Those become buyers earlier than 2028.
- The renewal cycle. Licences renew on a two-year cycle, and a contractor cannot renew without satisfying the workers'-comp requirement that applies to them. The renewal date is often the forcing function, not the policy date.
Where to check a specific licence
CSLB's Instant Licence Check shows current status, classification and workers'-comp coverage type for any licence number. For bulk work, the Master List and WorkerCompData files on the CSLB data portal carry the same fields for every licence in the state — that is the source LapseWatch reads.
Sources: SB 216 (2021–2022 Regular Session); SB 1455 (Ashby, Ch. 485, Stats. 2024); California Business and Professions Code §7125; CSLB Master List and WorkerCompData files dated 12 August 2026. Counts computed from those files. This is not legal advice — verify a specific licensee's obligation with CSLB.
See this in your own county
LapseWatch sends the California contractors in your territory whose workers'-comp policy or licence is about to expire — with phone, address and current carrier.