Recertifying Workers' Comp Exemption is Mandatory at Renewal

The new law requiring licensees to recertify their workers' compensation (WC) insurance exemption at renewal was recently implemented. Notification began with an insert reminder in renewal applications for licenses that expire on March 31, 2013. With the addition of Business and Professions (B&P) Code §7125.5, all active licensees with a WC exemption on file with CSLB, at the time of renewal, must recertify the exemption by completing a recertification statement on the license renewal form or provide a current and valid Certificate of Workers' Compensation Insurance or Certificate of Self-Insurance.

If the renewal application received by CSLB does not include a completed recertification or a valid Certificate of Workers' Compensation Insurance or Certificate of Self-Insurance, the license will not be renewed. However, if acceptable documentation is received within 30 days of the CSLB renewal rejection, the Registrar will grant a retroactive renewal (B&P Code §7141.5).

C-39 Roofing contractors still must provide workers' compensation coverage even if they have no employees, as required by B&P Code §7125. Also, all contractors with a Responsible Managing Employee as a qualifier must provide workers' compensation insurance. In either case, an exemption from workers' compensation insurance will not be accepted.

About 60 percent of active CSLB licensees claim a workers' compensation insurance exemption, declaring they have no employees. If this status changes, it is the licensee's responsibility to obtain the appropriate level of insurance and submit that information to CSLB. Remember that there can be no break in workers' compensation insurance coverage; no work can be performed if a license is suspended, and those who continue are considered to be unlicensed and subject to disciplinary action by CSLB within 90 days.