Insurance & LiensQuestion 113 of 1605
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 §3700Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)