CSLB Law & Business ExamEmployment RequirementsEasy
A licensed C-39 roofing contractor operates without any employees, performing all work personally. Under California law, is this contractor required to carry workers' compensation insurance?
- ANo, sole owners with no employees are always exempt from workers' compensation
- BOnly if the contractor's gross annual revenue exceeds $500,000
- COnly if the contractor plans to hire employees within the next 12 months
- DYes, roofing contractors must carry workers' compensation insurance regardless of whether they have employees
Show answer & explanationAnswer & explanation
Correct answer: D. Yes, roofing contractors must carry workers' compensation insurance regardless of whether they have employees
California law (effective January 1, 2019) requires all licensees classified in the C-39 roofing classification to carry workers' compensation insurance even if they have no employees, unlike most other license classifications where sole owners without employees may file an exemption.
Why the other options are wrong
- A. This general rule for other classifications does not apply to roofing contractors, who face a special mandatory requirement.
- B. Revenue level has no bearing on the roofing-specific workers' compensation mandate.
- C. The requirement applies immediately upon licensure in the roofing classification, not based on hiring plans.
Roofing Contractor Workers' Comp Mandate
California requires all C-39 roofing contractors to carry workers' compensation insurance at all times, even sole owners with no employees.
- Applies specifically to C-39 roofing classification
- No exemption for no-employee sole owners
- Enacted due to high injury rates in roofing work
Memory trick: Roofers always need coverage, rain or shine, employees or none.