NEW WORKERS’ COMPENSATION LAW: HERE’S WHAT YOU SHOULD KNOW

The new workers’ compensation law for California contractors

On January 1st, 2023, the new law for California contractors was sanctioned. Beginning in July 2023, this brand-new law requires for certain contractors to get a hold of workers’ comp insurance even if they don’t have any employees.

Petitioned by California governor, Gavin Newsom on September 30th, 2022, this law only includes certain types of contractors, however, in 2026 the law will be expanded to include additional types of contractors.

The first group of contractors that will require workers comp. beginning July 2023 is:

-       Concrete contractors with C-8 license.

-       HVAC contractors with C-20 license.

-       Asbestos abatement contractors with a C-22 license.

-       Tree service contractors with a D-49 license.

Another thing to know is that by January 2026, this law will include all types of contractors, unless they are organized as a joint venture following the Business and Professions Code Section 7029 and have no employees.

This law will not take effect on those contractors that do not hold relevant licenses; moreover, this doesn’t apply is this contractor has no employees and files a statement with the Contractors State License Board certifying that: “the applicant or licensee does not employ any person in any manner so as to become subject to the workers’ compensation laws of California or is not otherwise required to provide for workers’ compensation insurance coverage under California law.”

Thankfully, in Griffth Insurance, we would explain to you the hues and details that a WC policy includes. If you are in need of quality services, we are ready to take your call! Contact us now!