Can I keep my CSLB license without workers' compensation insurance?

Q: Can I keep my CSLB license without workers' compensation insurance?

Only if you have no employees and you file an exemption. CSLB requires every active license to have one of two things on file: a certificate of workers' compensation insurance, or a certification of exemption stating that the licensee has no employees. A C-36 license with neither is subject to suspension. The exemption is available to a C-36 plumbing contractor who truly has no employees, with limits: It is not available if the license is qualified by an RME, because an RME is by definition an employee. It is not available to the five classifications that SB 216 brought under a universal requirement in 2023 (C-8, C-20, C-22, C-39 and C-61/D-49). A C-36 that also holds one of those classifications must carry coverage. It stops being valid the moment you hire anyone subject to California workers' compensation law. CSLB must receive proof of coverage within 90 days of that hire, and operating with an invalid exemption exposes you to both license discipline and the state's uninsured-employer penalties. Keep in mind the exemption is a licensing document, not a shield. If an investigator or a claimant shows you had workers on the job, the exemption does not change the fact that you were an uninsured employer under the Labor Code. Finally, the exemption route closes for everyone on January 1, 2028, when SB 1455's universal requirement takes effect. If you plan to still be licensed then, budget for a policy regardless of headcount.

Question

Accepted Answer

Only if you have no employees and you file an exemption. CSLB requires every active license to have one of two things on file: a certificate of workers' compensation insurance, or a certification of exemption stating that the licensee has no employees. A C-36 license with neither is subject to suspension.

The exemption is available to a C-36 plumbing contractor who truly has no employees, with limits:

It is not available if the license is qualified by an RME, because an RME is by definition an employee.
It is not available to the five classifications that SB 216 brought under a universal requirement in 2023 (C-8, C-20, C-22, C-39 and C-61/D-49). A C-36 that also holds one of those classifications must carry coverage.
It stops being valid the moment you hire anyone subject to California workers' compensation law. CSLB must receive proof of coverage within 90 days of that hire, and operating with an invalid exemption exposes you to both license discipline and the state's uninsured-employer penalties.

Keep in mind the exemption is a licensing document, not a shield. If an investigator or a claimant shows you had workers on the job, the exemption does not change the fact that you were an uninsured employer under the Labor Code.

Finally, the exemption route closes for everyone on January 1, 2028, when SB 1455's universal requirement takes effect. If you plan to still be licensed then, budget for a policy regardless of headcount.