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On private works, preliminary notices must be served within 20 days of first furnishing labor, services, equipment, or materials. Serving late does not eliminate lien rights entirely but limits them to work performed within 20 days before service.

Preliminary notices must be served on the owner, the prime contractor, and the construction lender (if any). Serving all three is necessary to fully protect lien and stop payment notice rights.

If no Notice of Completion or Cessation is recorded, a mechanics' lien must be recorded within 90 days of completion of the project. This is the maximum window for lien claimants.

When an owner records a Notice of Completion, subcontractors and material suppliers (who are not the direct contractor) have only 30 days to record their mechanics' lien. The prime contractor has 60 days.

A recorded mechanics' lien expires unless the claimant files a lawsuit to enforce it within 90 days of recording. Failure to sue timely renders the lien void.

A stop payment notice (formerly "stop notice") requires the owner, lender, or public entity to withhold sufficient funds from the prime contractor to satisfy the claimant's unpaid claim.

To release a mechanics' lien from a property, the owner or contractor can record a lien release bond equal to 125% of the lien amount. This shifts the claimant's security from the property to the bond.

A valid mechanics' lien must include the claimant's name/address, employer/employee info, description of work/materials, amount of claim, description of the property, and owner's name. No SSN is required.

Mechanics' liens cannot be recorded against public property. However, on public works, unpaid claimants can serve a stop payment notice on the public entity to hold project funds.

The prime (direct) contractor has 60 days after the owner records a Notice of Completion to record a mechanics' lien. Subcontractors and suppliers have the shorter 30-day window.

Preliminary notices protect owners by informing them early who is furnishing labor and materials. Owners can then ensure funds flow properly and avoid paying the general contractor if subs are unpaid.

Once paid, the claimant must release the lien. If the owner makes a written demand, the claimant has 30 days to record a release. Failure to release can result in damages and attorney's fees.

A joint check agreement requires checks to be made payable jointly to the GC and subcontractor or supplier. This ensures the sub/supplier actually receives payment and reduces lien exposure.

Home improvement contractors must provide a "Notice to Owner" regarding the contractor's right to file a mechanics' lien AND a "Notice of Right to Cancel" informing homeowners of their three-day rescission right.

California Labor Code §3700 requires every employer to secure workers' compensation coverage before employing even one employee. There is no minimum employee threshold.

Operating without WC insurance can result in a stop order immediately prohibiting the use of employee labor, as well as substantial fines of up to $100,000. The CSLB may also suspend the license.

In a no-fault WC system, injured workers receive benefits regardless of whether they or the employer caused the injury. In exchange, workers' comp is generally the exclusive remedy against the employer.

Upon notice of a work injury, the employer must provide the employee with a DWC-1 claim form within one working day. Failing to do so can result in penalties and expanded employer liability.

California law requires employers to authorize up to $10,000 in medical treatment within one working day while a claim is being investigated (the "30-day presumption" period for treatment authorization).

TTD benefits replace approximately 2/3 of the injured worker's pre-injury average weekly earnings while they are temporarily unable to work, subject to state minimum and maximum weekly amounts.

When a treating physician declares an injured worker permanent and stationary (P&S) — also called maximum medical improvement — the acute phase of treatment has ended and permanent disability is evaluated.

Corporate officers may elect to exclude themselves from workers' comp coverage by completing the required exclusion form (Labor Code §3352); the election must be made in writing and kept on file. Keep this separate from the CSLB rule that a licensed contractor must CARRY a workers'-comp policy (B&P §7125): SB 216 is phasing that must-carry mandate in to all license classifications by 1/1/2028 (extended by SB 1455), but an officer's ability to waive coverage for THEMSELVES under §3352 is unchanged — the two are different questions.

Employers are required to post the DWC "Notice to Employees" poster in a conspicuous location. Failure to post can result in fines up to $7,000 and expanded employer liability for claims.

Supplemental Job Displacement Benefits (SJDB) are available when an injured worker cannot return to their usual job due to permanent partial disability and the employer doesn't offer regular, modified, or alternative work.

Workers' comp is the exclusive remedy against the employer for work injuries. Employees generally cannot sue their employer in civil court, though exceptions exist for serious and willful employer misconduct.

WC coverage must be in place before the first day any employee begins work. There is no grace period — employing workers without coverage even for one day is a violation.

Return-to-work programs benefit both employees (income continuation, faster recovery) and employers (reduced claims costs, retained experienced workers). Offering modified duty can significantly reduce WC costs.

When an uninsured subcontractor's employee is injured, the general contractor (as statutory employer) may be liable for workers' comp benefits. This is why GCs should verify WC certificates before allowing subs on site.

Labor Code §3700 requires every California employer to secure workers' compensation coverage, even for a single part-time employee. There is no minimum-hours or minimum-headcount exemption.

Labor Code §3700.5 makes it a misdemeanor for an employer to be unlawfully uninsured for workers' compensation. It is punishable by a fine, imprisonment in county jail, or both.

Under Labor Code §3722, the state may issue a stop order halting use of employees until the employer secures workers' compensation coverage. Penalties for being uninsured can reach up to $100,000.

Labor Code §3600 establishes workers' compensation as a no-fault system: an employee injured in the course of employment receives benefits without having to prove the employer was at fault, and even if the employee was partly at fault.

Labor Code §3602 makes workers' compensation the exclusive remedy for an employee against the employer for a work-related injury. In exchange for guaranteed benefits, the employee generally cannot sue the employer in civil court.

Under Labor Code §3351, qualifying corporate officers and directors who own stock may elect, in writing, to be excluded from workers' compensation coverage. The exclusion is not automatic; it requires a signed waiver filed with the insurer.

Labor Code §5401 requires the employer to provide the DWC-1 claim form to the injured employee within one working day after the employer knew or should have known of the injury.

Labor Code §5402 requires the insurer to authorize and pay for medical treatment up to $10,000 while the claim is being investigated, so the injured worker is not left without care during the decision period.

Temporary total disability benefits generally equal two-thirds of the worker's average weekly wages, subject to statutory minimums and maximums. They replace lost income while the worker recovers.

Labor Code §4658.7 provides a supplemental job displacement benefit in the form of a voucher that helps pay for retraining or skill enhancement when an injured worker does not return to work and is not offered suitable alternative employment.

Labor Code §3550 requires employers to post a notice, in a conspicuous location, informing employees that the employer carries workers' compensation insurance and explaining basic employee rights.

Under Labor Code §2750.5, a person performing work requiring a contractor's license without one is presumed to be an employee, not an independent contractor. The general contractor can therefore be liable as the employer for the unlicensed sub and its workers.