Governor approves contractor comp cover requirement

Some contractors will be required to carry comp coverage next year even if they don’t have any employees, under a bill signed by California Gov. Gavin Newsom on Friday.

S.B. 216 initially applies to all concrete, heating and air conditioning and tree service contractors. Starting in 2026, all contractors will be required to carry comp coverage unless they are organized as a joint venture under Business and Professions Code Section 7029 and have no employees.

The law requires the Contractors State License Board to suspend the license of any of the specified contractors if, between July 1, 2023, and Jan. 1, 2026, it finds a contractor had employees and did not have comp coverage.

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