ContractorsWorkers’ Compensation Insurance Reports
Section § 7125
This law requires contractors to hold a valid Certificate of Workers’ Compensation Insurance or Certification of Self-Insurance to get, keep, or renew a license, except under certain conditions. If a contractor has no employees and does not hold specified licenses (C-8, C-20, C-22, C-39, D-49), they may be exempt if they file a statement confirming their status. A joint venture without employees that files a similar statement is also exempt. Licenses that are inactive do not require these certifications.
Insurers must report certain policy details to the board, including when policies are issued, canceled, or if there’s been a misrepresentation by the insured. If misrepresentation leads to financial harm without reimbursement, it can lead to disciplinary actions. For some specific licenses active as of defined dates, their classification can be removed or risk being suspended if proper insurance is not maintained. Information related to policy cancellations is confidential. This law remains valid until January 1, 2028, unless extended or changed by new legislation.
Section § 7125
This law requires contractors to have proof of workers' compensation insurance or self-insurance to get or maintain a contractor's license, except if they have no employees and certify this to the board. Insurance details like policy numbers and coverage dates must be reported to the registrar. If a policy is canceled due to fraud or unpaid reimbursements, this must also be reported, leading to possible disciplinary action. Information about fraudulent cancellations remains confidential. This regulation starts January 1, 2028.
Section § 7125.1
This law explains how a professional license in California can be reinstated. If a certificate needed for the license is submitted within 90 days of its effective date, the registrar will accept it and the license will be reinstated back to that date. If the certificate is submitted late, it can still be accepted if the licensee proves that missing the deadline was due to uncontrollable circumstances. In both cases, the license is reinstated retroactively to the certificate's effective date, as long as all other eligibility criteria are met.
Section § 7125.2
If a business with a requisite license fails to secure or keep up workers' compensation insurance, their license is automatically suspended. This suspension becomes active when the insurance lapses or when it was required but not obtained. The authorities will notify the business about the suspension, why it happened, and how to fix it. The license can be reinstated once the business proves they have the correct insurance. If someone is working as a contractor without a license and without necessary insurance, they can be fined. They have 15 working days to ask for a hearing about the fine.
Section § 7125.3
This law states that a contractor is regarded as having a valid license for the time periods covered by a specific certificate, as long as they follow the related rules in this chapter.
Section § 7125.4
If someone files a false exemption from workers' compensation or hires workers without the proper insurance, they can face disciplinary action. Also, if a person responsible for ensuring compliance with licensing laws either commits or doesn't stop violations related to workers' compensation, they can be charged with a misdemeanor.
Section § 7125.5
If you're renewing a contractor's license in California and currently have an exemption for workers' compensation insurance on file, you must either confirm your exemption status on the renewal form or provide proof of insurance. Your license won't be renewed without doing this. If you miss providing this information, you get a grace period of 30 days after being notified to submit it and still potentially keep your renewal date. Failing to comply within those 30 days means you can't get a retroactive renewal approval.
Section § 7125.6
This law outlines the process for license renewal for businesses with workers' compensation insurance. At renewal, these businesses must report their top three payroll classification codes on their renewal form. If there are fewer codes, they must report all of them. The licensing board doesn't have to check the accuracy of these codes and won't be liable for mistakes. A license can't be renewed without this information, unless the business provides it within 30 days after getting a renewal rejection notice. If done within this time, their renewal can be backdated. Any updates on the board’s website about license renewals will show the certified classification codes. This requirement will start on July 1, 2024.
Section § 7125.7
This law requires that by January 1, 2027, a process needs to be set up to check if a business owner who doesn't have any employees can be exempt from needing workers' compensation insurance. This check could involve an audit or other evidence-based methods to prove eligibility.
Section § 7126
This law states that licensed contractors or their agents who break the rules outlined in their license are committing a misdemeanor, which is a minor crime. If someone is working as a contractor without a license and they break certain labor laws, they’re also committing a misdemeanor. Any legal action to charge someone with these misdemeanors must start within two years from when the offense happened.
Section § 7127
If an employer does not have proper workers' compensation insurance as required, the authorities can issue a stop order to immediately halt the use of any employee labor. Affected employees are entitled to be paid for up to 10 days during this stoppage. Ignoring this stop order can result in criminal charges, including jail time or fines. Employers can challenge the stop order by requesting a hearing within 20 days, and a decision will be made quickly after the hearing. If still dissatisfied, employers can appeal to a higher court within a certain timeframe.