A licensed contractor organized as a joint venture under §7029, with no employees, has filed an Exemption from Workers' Compensation with the CSLB. The joint venture then hires an employee. Under Bus. & Prof. Code §7125 and §7125.4, what must it do?
Explanation
A §7029 joint venture with no employees may hold an exemption today, and from January 1, 2028 — when the SB 216 version of §7125, postponed from 2026 by SB 1455, takes effect — it will be the ONLY licensee that can; until then other no-employee licensees outside the C-8, C-20, C-22, C-39 and D-49 classifications may file one too. §7125.4 then makes that exemption void by operation of law the moment an employee is hired, and the license is suspended unless a Certificate of Workers' Compensation Insurance is on file. There is no grace period to shop for a policy (d), no waiting for renewal (c), and nothing about this requires surrendering the license (b).
Law Reference: Bus. & Prof. Code §7125 (as amended by SB 1455, Stats. 2024, ch. 485); §7125.4; §7029This 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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