Running the Business · Module 1
Workers' compensation: what a C-36 must carry today, and what changes in 2027 and 2028
A C-36 with no employees can still file a workers' compensation exemption today, but that exemption is on a clock and about to be audited. Senate Bill 216 made coverage mandatory for every classification; Senate Bill 1455 set that date at January 1, 2028, and requires CSLB to verify exemption claims by January 1, 2027. If your license is qualified by an RME, or you hire anyone for any length of time, the exemption is not available at all. This lesson lays out exactly who must carry coverage now, the 90-day rule when you hire, what a lapse does to your license, and why most new contractors should skip the exemption.
What the full lesson covers
- Today: a C-36 with no employees may file an exemption. You cannot file one if you employ anyone, if your license is qualified by an RME, or if you hold C-8, C-20, C-22, C-39 or D-49.
- The moment you hire, the exemption is void and proof of coverage must reach CSLB within 90 days of the hire.
- By January 1, 2027, CSLB must have a process, which may include an audit or proof, to verify anyone claiming the exemption (B&P 7125.7).
- On January 1, 2028, coverage becomes mandatory for every licensee regardless of employees; the only exception is a joint venture with no employees (SB 216 as amended by SB 1455).
- A lapse suspends the license. Work during the suspension is unlicensed contracting. Reinstatement happens when CSLB receives acceptable proof.
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