Workers' Comp, Prevailing Wage, and California Payroll Taxes
Three money-and-compliance topics that show up on the Law & Business exam: insuring your crew, paying your taxes, and the special rules for public jobs.
1. Workers' compensation insurance
Every California employer with employees must carry workers' compensation insurance. (Labor Code §3700) The CSLB requires you to file either a Certificate of Workers' Compensation or a signed exemption (stating you have no employees).
Operating with employees but no workers' comp = automatic license suspension plus penalties.
The rule is expanding (SB 216). SB 216 phases in a requirement that all contractor classifications carry workers' comp even with no employees:
- Since Jan 1, 2023: already required for C-8, C-20, C-22, D-49.
- All other classifications (including C-10): originally Jan 1, 2026, but SB 1455 (2024) extended it to January 1, 2028 (with a new exemption-verification process starting 2027).
So today a C-10 with no employees can still file an exemption — but that window closes in 2028.