SB-291
Labor & Employment

Contractors: workers’ compensation insurance.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Establishes stricter oversight of contractors' workers' compensation insurance requirements by 2027.
  • Imposes a minimum $10,000 penalty on contractors who employ workers without workers' compensation coverage.
  • Requires contractors claiming no employees to undergo enhanced verification including audits and proof.
  • Prohibits license renewal for contractors with workers' compensation violations until compliance is achieved.

Summary

Senator Grayson's workers' compensation insurance legislation establishes stricter verification requirements and higher penalties for contractors who employ workers without maintaining proper coverage. The bill requires the Contractors State License Board to implement an evidence-based process by January 2027 to verify eligibility for workers' compensation insurance exemptions through audits and documentation.

The legislation institutes a tiered penalty structure for violations, with minimum civil penalties of $10,000 for sole proprietors and $20,000 for other business entities found employing workers without required coverage. Subsequent violations can result in penalties up to $30,000 per occurrence. The board cannot renew or reinstate licenses for contractors facing these disciplinary actions until they provide valid proof of workers' compensation insurance or self-insurance certification.

Under the new requirements, the board must include specific data about workers' compensation insurance violations in its annual legislative report. The reporting mandate includes tracking disciplinary actions related to false exemption certificates and failures to maintain proper coverage. These provisions aim to provide greater transparency around enforcement of workers' compensation requirements in the contracting industry.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 1100
Assembly Insurance Hearing
Assembly Committee
Assembly Insurance Hearing
Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar
Assembly Business And Professions Hearing
Assembly Committee
Assembly Business And Professions Hearing
Do pass and be re-referred to the Committee on [Insurance] with recommendation: To Consent Calendar
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB291 Grayson
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Senate Business, Professions and Economic Development Hearing
Senate Committee
Senate Business, Professions and Economic Development Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Tim GraysonD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lisa CalderonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Tim GraysonD
Senator
Bill Author
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Tim Grayson
Tim GraysonD
California State Senator
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/28/2025)

Latest Voting History

July 16, 2025
PASS
Assembly Committee
Assembly Insurance Hearing
AyesNoesNVRTotalResult
170017PASS

Key Takeaways

  • Establishes stricter oversight of contractors' workers' compensation insurance requirements by 2027.
  • Imposes a minimum $10,000 penalty on contractors who employ workers without workers' compensation coverage.
  • Requires contractors claiming no employees to undergo enhanced verification including audits and proof.
  • Prohibits license renewal for contractors with workers' compensation violations until compliance is achieved.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Tim Grayson
Tim GraysonD
California State Senator

Summary

Senator Grayson's workers' compensation insurance legislation establishes stricter verification requirements and higher penalties for contractors who employ workers without maintaining proper coverage. The bill requires the Contractors State License Board to implement an evidence-based process by January 2027 to verify eligibility for workers' compensation insurance exemptions through audits and documentation.

The legislation institutes a tiered penalty structure for violations, with minimum civil penalties of $10,000 for sole proprietors and $20,000 for other business entities found employing workers without required coverage. Subsequent violations can result in penalties up to $30,000 per occurrence. The board cannot renew or reinstate licenses for contractors facing these disciplinary actions until they provide valid proof of workers' compensation insurance or self-insurance certification.

Under the new requirements, the board must include specific data about workers' compensation insurance violations in its annual legislative report. The reporting mandate includes tracking disciplinary actions related to false exemption certificates and failures to maintain proper coverage. These provisions aim to provide greater transparency around enforcement of workers' compensation requirements in the contracting industry.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/28/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 1100
Assembly Insurance Hearing
Assembly Committee
Assembly Insurance Hearing
Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar
Assembly Business And Professions Hearing
Assembly Committee
Assembly Business And Professions Hearing
Do pass and be re-referred to the Committee on [Insurance] with recommendation: To Consent Calendar
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB291 Grayson
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Senate Business, Professions and Economic Development Hearing
Senate Committee
Senate Business, Professions and Economic Development Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Latest Voting History

July 16, 2025
PASS
Assembly Committee
Assembly Insurance Hearing
AyesNoesNVRTotalResult
170017PASS

Contacts

Profile
Tim GraysonD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lisa CalderonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Tim GraysonD
Senator
Bill Author
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member