When does every California contractor need workers' comp? (2028, not 2026)

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:

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:

1. Now → 31 Dec 2026 — exemption available to most classifications, self-certified.
2. 1 Jan 2027 — CSLB exemption verification process must be in place. Expect scrutiny of contractors who have coasted on an exemption.
3. 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 license is exposed immediately.

This shows up in the data with unusual clarity. Share of active licenses holding a workers'-comp exemption, from California's official licensing records dated 12 August 2026:

Across all 232,052 active licenses, 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 license 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 putting a reminder in the calendar for:

• 1 January 2027. Once CSLB has to verify exemptions, some share of those 113,000 exempt licenses will not survive scrutiny — contractors who do use labor but self-certified otherwise. Those become buyers earlier than 2028.
• The renewal cycle. Licenses 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 license

CSLB's Instant License Check shows current status, classification and workers'-comp coverage type for any license number — the fastest way to verify a single contractor. LapseWatch reads the same official state records in bulk, for every license in California, every week.

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Sources: SB 216 (2021–2022 Regular Session); SB 1455 (Ashby, Ch. 485, Stats. 2024); California Business and Professions Code §7125; official CSLB licensing and workers'-comp records dated 12 August 2026. Counts computed from those records. This is not legal advice — verify a specific licensee's obligation with CSLB.