California plumbing workers comp splits payroll by hourly wage for policies from September 1, 2026: the published plumbing classifications divide at $35.00 an hour, 5183(1) below that line and 5187(1) at or above it. Which one applies to each plumber turns on actual duties, hourly records and the carrier's determination.
Plumbing contractors in California hold the C-36 license from the Contractors State License Board, and the CSLB requires workers comp as soon as a plumbing business has one employee. A C-36 licensee with no employees can file an exemption today, but that exemption is scheduled to end on January 1, 2028. The CSLB has proposed changes, so the date could still move; the wider California contractor workers comp rules list the license classes that already cannot file it.
| Rule | What It Means for a Plumbing Shop | Source |
|---|---|---|
| Employees | Workers comp is required once the business has one employee. | CSLB |
| No-employee exemption | Open to C-36 licensees today and scheduled to end on January 1, 2028. | Business and Professions Code 7125 |
| False exemption or uncovered employees | A minimum civil penalty of $10,000 per violation for a sole owner and $20,000 for an entity, under SB 291. | Business and Professions Code 7125.4 |
| Unlicensed helpers | Someone doing licensed plumbing work for you without a license of their own is presumed to be your employee. | Labor Code 2750.5 |
| Owners and officers | An officer or director owning at least 10% may waive coverage, and the waiver takes effect when the insurer accepts it. | Department of Insurance notice |
Whether an owner stays on the policy is a choice 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 plumbing workers comp and Nevada plumbing industrial insurance.
The WCIRB publishes plumbing as a wage-split pair. For policies from September 1, 2026, the line sits at $35.00 an hour of regular pay. Every wage-split trade is on the California class code list by trade.
$35.00 an hour is the line between these published classifications
Published classifications that mention this work
Illustrative scenario
A service and repair plumbing company has two apprentices paid under $35.00 an hour and four journey-level plumbers paid above it. With hourly records for each person, the apprentices' payroll is reported under the lower-wage plumbing classification and the four plumbers' payroll under the higher-wage one. Move the same shop to Arizona or Nevada and the example stops working: California codes don't carry over, and those states use a different classification system.
Reporting One Blended Wage
Plumbing shops often estimate payroll with one average wage for the whole crew. The California split compares each person's regular hourly rate to the threshold, so an average can put payroll in the wrong classification, and the audit then moves it back.
Workers comp answers for injuries to your employees. Damage to a customer's home from a burst fitting, an accident in a service van or a dispute over a job typically falls to other policies, such as general liability, commercial auto or a contractor's bond. Ask about those separately when you request a quote.
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The WCIRB publishes a plumbing pair split by hourly wage: 5183(1) for plumbers paid under $35.00 an hour and 5187(1) at or above it, for policies from September 1, 2026. The right classification depends on the work each person does and the carrier's determination; we don't assign or confirm codes.
Not today, if the C-36 licensee files an exemption with the CSLB. That exemption is scheduled to end on January 1, 2028, after which licensees need a certificate on file unless an exception applies. The CSLB has proposed changes, so check the current rule before you rely on it.
Usually, yes. Under Labor Code 2750.5, a person doing work that needs a contractor license, for someone who must hold one, is presumed to be an employee unless they hold their own license. That helper's pay is likely to be counted at audit.
California counts regular pay for overtime hours, and it leaves the overtime premium out only when your records show it separately. If your payroll reports lump overtime together, the full amount may be counted.
The split follows the regular hourly wage each person is paid, so a raise past $35.00 can move that person's payroll to the higher-wage classification for the hours after the change. Keep the raise date in your records so the audit reflects it.
Yes. Send your payroll, renewal month and crew, and a broker reviews every request. Some programs fit larger payrolls, so the options can depend on size, losses and experience.
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California plumbing workers comp, from the wage split to the audit.
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