EmploymentQuestion 996 of 1605
Under California Labor Code §3700, when is a contractor legally required to carry workers' compensation insurance?
a.Only when the business has ten or more full-time employees
b.Only when the business grosses more than $250,000 per year
c.Only when the contractor works on public-works projects
d.Whenever the business has one or more employees, including part-time employees
Explanation
Labor Code §3700 requires every California employer to secure workers' compensation coverage for its employees. There is no minimum-employee threshold: coverage is mandatory the moment a business has even a single employee, whether full-time or part-time.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)