Insurance & LiensQuestion 455 of 1605
A contractor hires their very first employee, a part-time helper. When must the contractor carry workers' compensation insurance?
a.Immediately; coverage is required for every employer with even one employee
b.Only after the helper works more than 40 hours per week
c.Only once the business has three or more employees
d.Only if the helper requests it in writing
Explanation
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.
Law Reference: Labor Code §3700Practice all 1605 questions free — no signup required.
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- A contractor with employees knowingly operates without workers' compensation insurance. Under California law, this failure to insure is:
- Cal/OSHA's Division of Labor Standards Enforcement discovers a contractor employing uninsured workers. What immediate action can it take at the job site?
- Workers' compensation in California is described as a "no-fault" system. What does this mean for an injured employee?
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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)