Insurance & LiensQuestion 1606 of 1632

SB 1455 (Stats. 2024, ch. 485) moved the date on which B&P §7125 requires every licensee, with or without employees, to carry workers' compensation. From what date does that requirement apply?

a.January 1, 2026
b.January 1, 2028
c.January 1, 2027
d.July 1, 2026

Explanation

SB 216 (Stats. 2022, ch. 978) wrote a version of §7125 that requires every licensee to carry workers' compensation or self-insurance whatever its classification, leaving only a §7029 joint venture with no employees exempt, and set it to start on January 1, 2026. SB 1455 (Stats. 2024, ch. 485) rewrote that start date: the new section "shall become operative on January 1, 2028" (b), and the interim §7125 — a no-employee exemption available to everyone except C-8, C-20, C-22, C-39 and D-49 holders — stays in effect until then. (a) is the original SB 216 date, which is why so much study material still states the all-licensee rule as current. (c) is a real date in the same bill, but for something else: by January 1, 2027 §7125.7 requires the board to establish a process to verify that licensees claiming the no-employee exemption are eligible. (d) is not a date either bill uses.

Law Reference: Bus. & Prof. Code §7125 (Stats. 2024, ch. 485, SEC. 12–13); §7125.7

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