California general contractor workers comp payroll may fall under several published classifications: one that mentions executive-level construction supervisors (5606), one for firms whose construction is all subcontracted (5610), and the carpentry pair split at $46.00 an hour. What you paid subs who can't show their own coverage may also be added at audit.
General contractors in California are licensed by the CSLB as B General Building or under the narrower B-2 Residential Remodeling class. Neither is on the board's short list of licenses that must carry workers comp with no employees, so a licensee working alone can file an exemption for now. A CSLB report has proposed keeping a narrower version past January 1, 2028, so the end date could still change; the California contractor workers comp rules page tracks it.
| Rule | What It Means for a GC | Source |
|---|---|---|
| First hire | Coverage is required once the company has a single employee, whether that person runs a saw or the office. | CSLB |
| No-employee exemption | Still open to B and B-2 licensees, and scheduled to end on January 1, 2028. | Business and Professions Code 7125 |
| Unlicensed subs | Anyone doing work that needs a contractor license, without a license of their own, is presumed to be your employee. | Labor Code 2750.5 |
| False exemption | Minimum civil penalties of $10,000 per violation for a sole owner and $20,000 for a corporation, LLC or partnership, under SB 291. | Business and Professions Code 7125.4 |
| Corporate officers | An officer or director who owns at least 10% may waive coverage, starting when the insurer accepts the waiver. | Department of Insurance notice |
GC owners often estimate on weekdays and walk jobs on weekends. Whether an owner stays on the policy is a decision to make with the carrier, after reading what a waiver gives up. Crews that also work across the state line answer to different rules, set out in Arizona tenant improvement workers comp and Nevada contractor industrial insurance.
The class panel for general contractors lists four published WCIRB classifications. Two describe how the firm runs: one mentions supervisors at the executive level of a construction business, and one mentions construction that is entirely subcontracted. The other two are the carpentry pair, divided at $46.00 an hour of regular pay for policies from September 1, 2026. A firm may report payroll under more than one of them, and the full set is on the California workers comp class codes list.
$46.00 an hour is the line between these published classifications
Published classifications that mention this work
A superintendent who only runs schedules differs from one who sets doors when a crew runs short; classification follows actual duties and the carrier's determination, not titles. Trades you hire are explained under California carpentry workers comp and workers comp for drywall contractors in California.
Illustrative scenario
Illustrative only. A B-2 Residential Remodeling contractor runs kitchen and bath jobs with three carpenters: two paid under $46.00 an hour and a lead paid above it. Tile and drywall go to subs. At audit, the carpenters' payroll splits across the carpentry pair by each person's regular hourly rate. The drywall sub's policy lapsed in the spring, so the auditor may add what was paid to it after the lapse to the GC's payroll. Move this firm to Arizona or Nevada and the example stops working: the carpentry wage split is California's, and those states use NCCI classifications and their own rules for subs.
Collecting a Sub's Certificate Only Once
Many GCs file a sub's certificate at the first job and never ask again. Policies lapse mid-project, and the auditor compares the dates you paid each sub with the dates its policy was in force.
With the sub ledger and payroll in hand, get a California general contractor workers comp quote.
Before the job starts, send each sub the list of what to ask subcontractors for workers comp.
Workers comp answers for injuries to your employees, and in some cases to workers the law treats as yours. A client who trips over a stack of tile, a pickup accident between jobs or a defect claim after final inspection typically falls to other policies, such as general liability, commercial auto, builder's risk or a contractor's bond.
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The WCIRB publishes classifications that mention GC work: 5606 for executive-level construction supervisors, 5610 for firms whose construction is all subcontracted, and the carpentry pair 5403 and 5432, split at $46.00 an hour. A firm may report under more than one. The carrier makes the determination from actual duties; we don't assign or confirm codes.
If you have one employee, even an estimator or office manager, California requires coverage. A firm that subcontracts all of its construction may see that reflected in its classification, and its sub payments are still reviewed at audit. With no employees at all, a B or B-2 licensee can file an exemption until January 1, 2028, unless the rule changes first.
You may. When a sub can't show its own coverage for the period you paid it, the auditor may add those payments to your payroll. If that sub also lacked a license for the work, Labor Code 2750.5 presumes its workers are your employees. A current certificate collected before work starts is the record that settles the question.
It depends on what the superintendent does all day. The published classification mentions executive-level supervisors, and someone who also frames, installs or moves material may be reported with the crew's work instead. Keep a written job description and time records that show where the hours go.
If you stay on the policy, officer payroll is counted within a minimum and maximum the WCIRB sets, not at your full draw. An officer or director who owns at least 10% may waive coverage, effective when the insurer accepts the waiver. Talk it through with the carrier and read what a waiver gives up before deciding.
Under SB 291, the minimum civil penalty is $10,000 per violation for a sole owner and $20,000 for an entity, and later violations can total up to $30,000 per occurrence. Lawmakers also directed the CSLB to verify exemptions through an audit, proof or other means.
10 official sources
Reviewed by David Gleason, Principal, on .
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California general contractor workers comp, from supervisor classes to sub certificates.
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