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 §3700

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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