According to California regulations, when must a B-General Building Contractor provide workers' compensation insurance coverage?
Correct Answer
D) When the contractor has any employees, regardless of project size
California Labor Code Section 3700 requires all employers, including contractors, to provide workers' compensation insurance when they have any employees, regardless of project size or type. This is mandatory coverage that cannot be waived and applies to all construction work performed by employees, not just specific types of projects or dollar amounts.
Why This Is the Correct Answer
California Labor Code Section 3700 requires every employer — including contractors — to provide workers' compensation insurance for any and all employees. The requirement triggers the moment a contractor has even one employee, regardless of the project type, project value, or size of the job. There is no minimum project threshold for this mandatory coverage.
Why the Other Options Are Wrong
Option A: Only for projects involving structural work
'Only for projects involving structural work' is incorrect. Workers' compensation applies based on the employment relationship, not the nature of the work being performed. A contractor with employees doing any type of construction work must carry workers' comp coverage.
Option B: When specifically requested by the property owner
'When specifically requested by the property owner' is incorrect. Workers' compensation is a mandatory legal requirement under the California Labor Code, not an optional coverage that owners must request. Contractors cannot legally opt out of this requirement based on owner preference.
Option C: Only when working on projects exceeding $500 in value
'Only when working on projects exceeding $500 in value' is incorrect. The $500 threshold applies to the contractor licensing exemption under B&P Code Section 7031, not to workers' compensation requirements. These are two entirely separate legal requirements with different triggers.
Memory Technique
Workers' comp rule: '1 employee = mandatory coverage, no exceptions.' Think of it as an on/off switch tied to employment — the moment you hire someone, the switch flips to ON. Project size, type, and owner requests are all irrelevant.
More law-business Questions
Under B&P Code Section 7071.9, a contractor may deposit cash or securities instead of obtaining a surety bond. If a contractor chooses this option, where must the deposit be maintained and what happens to interest earned?
Under California's AB 5 law (Dynamex decision), which factor is NOT part of the ABC test for determining independent contractor status?
According to Business and Professions Code Section 7031, what is required when a licensed contractor supervises work performed by unlicensed employees on a construction project?
Under California Building Standards Code Title 24, which entity has the authority to issue building permits for most residential and commercial construction projects?
According to B&P Code 7159.5, service and repair contracts must include specific provisions. Which statement is correct regarding these contracts?
Which of the following activities is exempt from California contractor licensing requirements under Business and Professions Code Section 7048?
Under Cal/OSHA regulations in Title 8 CCR Section 5192, Safety Data Sheets (SDS) for hazardous chemicals used on construction sites must be readily accessible to employees during which hours?
Under California Business and Professions Code Section 7071.9, in lieu of a surety bond, what alternative security may a contractor provide to satisfy the contractor license bond requirement?
According to Cal/OSHA regulations, which of the following is NOT a required element of a written Injury and Illness Prevention Program (IIPP)?
A homeowner requests that a B-General Building Contractor provide a certificate of insurance naming the homeowner as an additional insured on the contractor's general liability policy. Under California law, what is the contractor's obligation?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass