What changes on January 1, 2028
- Starting January 1, 2028 (SB 216, as delayed by SB 1455), every active California contractor license must carry workers' comp, except joint ventures with no employees. Until then, C-8, C-20, C-22, C-39 and C-61/D-49 licenses must already carry it, and every other license needs it as soon as it has an employee.
- The CSLB workers' comp exemption certificate goes away for everyone except joint ventures with no employees
- A license with no workers' comp policy on file will be suspended, the same way it is for licenses that must carry it today
How many contractors are affected
| License group (CSLB, September 2026) | Active licenses | Filed exempt |
|---|---|---|
| B General Building | 98,102 | 56,038 (57%) |
| C-10 Electrical | 26,543 | 13,388 (50%) |
| C-36 Plumbing | 16,591 | 8,453 (51%) |
| C-33 Painting | 14,657 | 7,725 (53%) |
| A General Engineering | 13,954 | 4,703 (34%) |
| C-20 HVAC | 10,980 | 0 (already required) |
| C-39 Roofing | 5,339 | 0 (already required) |
Note: Source: CSLB master license file, September 2026, licenses in good standing. A license can hold more than one classification, so rows overlap.
What a ghost policy is
A ghost policy is a workers' comp policy written for a business that has no employees, usually a sole owner. It covers the contractor's obligation to show a policy on file with CSLB and responds if a worker turns out to be an employee. Carriers rate it on a minimum payroll, so the premium is small compared with a policy for a crew. Some carriers will not write a true zero-payroll policy and require a nominal payroll.
Who must act first
- Sole owners and partnerships filed exempt today: you will need a policy before 2028 to keep the license active
- Anyone who hires even one employee: you need workers' comp at that moment, with or without a 2028 rule
- Licenses that already cannot be exempt (C-8, C-20, C-22, C-39, C-61/D-49): no change, keep the policy continuous
- Joint ventures with no employees: still exempt
What to do before 2028
- Check your CSLB record: the workers' comp line shows 'Exempt' or a carrier and policy
- If you are exempt, get a quote early so the policy is in place well before the deadline
- If you use 1099 helpers, confirm they are properly classified. Misclassified workers can turn into employees for workers' comp
- Ask your broker which markets write ghost policies for your class and what minimum payroll they require
Get a ghost policy quote
Asena quotes owner-only workers' comp for California contractors and checks which carriers accept your class code and state. Call (858) 925-9555 or request a review online — only your name, phone and email are required; we collect project details by phone. Asena Capital Insurance Services, CA License #6008596.
Frequently asked questions
Do sole proprietor contractors need workers' comp in California?
Not today unless you have an employee or hold a license that cannot be exempt (C-8, C-20, C-22, C-39 and C-61/D-49). From January 1, 2028, every active license needs workers' comp, except joint ventures with no employees.
What is a ghost policy?
A workers' comp policy for a business with no employees, used to keep a contractor license in compliance. The premium is based on a small minimum payroll.
When does SB 216 take effect?
January 1, 2028, after SB 1455 delayed the original start date.
How do I know if my license is filed exempt?
Look up your license on the CSLB website. The workers' comp section says 'Exempt' or shows an insurance company and policy number.