2023 Worker’s Comp Expansion Update

End of year is rapidly approaching so now is the time to prepare for changes ahead. The rules for contracting are complex to start, so staying ahead of the curve is always a challenge. Let me share the burden as we have assisted contractors for decades. 2023 is just another year…

The Contractors State License Board is always working on communicating with contractors as changes occur. They want to share upcoming news on Worker’s Compensation rules, even those who don’t have employees. 

The Board says, “Starting January 1, 2023, renewals will not be processed without proof of worker’s compensation insurance for license classifications “C-8” (Concrete), “C-20” (HVAC), “C-22” (Asbestos Abatement), and “D-49” (Tree Service), regardless of whether the contractor has employees.” 

As of January 1, 2023, Business & Professions Code Section 7125 will require worker’s compensation insurance as a condition for issuing, reinstating, reactivating, renewing, or maintaining a license in one of these classifications. Section 7125 also requires the removal of these classifications from any license that is not in compliance as of July 1, 2023. CSLB understands this and will apply these deadlines in the following manner.

These are the ‘bullet points’: 

After January 1, 2023, no license in these classifications will be issued, reactivated, or renewed without a valid Certificate of Worker’s Compensation Insurance. 

If you have an active license, do not have employees, and are not due to renew until after June 30, 2023, CSLB will not require you to have proof of worker’s compensation insurance on file until July 1, 2023. 

After June 30, 2023, any licensee holding a “C-8”, “C-20”, “C-22”, or “D-49” that does not have a Certificate of Worker’s Compensation Insurance on file with CSLB will have that classification removed. Because it may take time to seek and obtain a worker’s compensation insurance policy, CSLB strongly recommends that you not wait until this deadline to obtain a policy and file your certificate. 

SB 216 also requires that all active contractors-with or without employees- have a valid Certificate of Worker’s Compensation Insurance by January 1, 2026. 

Information about filing a Certificate of Worker’s Compensation with CSLB can be found on the CSLB website, which is always a good source in staying up to date on contractor regulations. 

Here are some FAQ’s on Comp- 

Contractors can obtain worker’s compensation coverage from any licensed insurer. 

The California Department of Insurance has worker’s compensation insurance resources online. 

The State Compensation Insurance Fund provides worker’s compensation coverage to many contractors and offers resources specifically designed for the construction industry. Contractors can obtain a quote from State Fund. 

So, are you affected? Licensees in the Concrete, HVAC, Asbestos Abatement and Tree Service classifications who already have a Certificate of Worker’s Compensation Insurance on file with CSLB, this is informational only and no further action is required.