Insurance & LiensQuestion 113 of 1632
A contractor must obtain workers' compensation coverage before:
a.The first day an employee reports to work
b.The end of the first quarter
c.Filing annual taxes
d.Receiving the first project payment
Explanation
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.
Law Reference: Labor Code §3700This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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PrepPass team · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)