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CaliforniaSB 2912025-2026 Regular SessionSenateWALLET

Contractors: workers’ compensation insurance.

Sponsored By: Timothy Grayson (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Big penalties for no workers' comp

False exemption filings or employing workers without required coverage now trigger discipline and large fines. The minimum fine is $10,000 per violation for sole owners and $20,000 per violation for partnerships, corporations, LLCs, or tribal businesses. Added penalties for repeat violations can bring the total to $30,000 per occurrence. The Board cannot renew or reinstate a license in violation until it receives a valid workers’ comp certificate or self-insurance certification in the business name. Qualifying individuals responsible for compliance can be guilty of a misdemeanor if they commit or fail to stop acts that lead to discipline under these coverage rules.

Higher fines with clear caps for contractors

The law sets clear caps on civil fines. Most violations can be fined up to $8,000 per violation. For certain serious violations, fines can be up to $30,000 per violation. Beginning July 1, 2026, fines must be at least $500 for most violations and at least $1,500 for those serious violations. The Board can raise the minimums for inflation every five years. A temporary rule for how fines are set stays in place until July 1, 2026. Some changes only take effect if timing rules with another bill (SB 779) are met by January 1, 2026.

Tighter checks on workers' comp exemptions

By January 1, 2027, the Board sets a process to verify that applicants or licensees with no employees qualify for a workers’ comp exemption. The process can include audits or proof requests. The Board must report its proposed process to the Legislature by January 1, 2027. This reporting rule ends on January 1, 2030.

Sponsors & Cosponsors

Sponsor

  • Timothy Grayson

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 226 • No: 0

Senate vote • 9/9/2025

Item 42 — Senate SFLOOR

Yes: 40 • No: 0

House vote • 9/8/2025

Item 129 — Assembly AFLOOR

Yes: 79 • No: 0

legislature vote • 8/29/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 7/16/2025

Vote in CX28

Yes: 17 • No: 0

legislature vote • 6/24/2025

Vote in CX33

Yes: 16 • No: 0

Senate vote • 5/28/2025

Item 78 — Senate SFLOOR

Yes: 35 • No: 0

legislature vote • 4/29/2025

Vote in CS53

Yes: 13 • No: 0

legislature vote • 4/21/2025

Vote in CS42

Yes: 11 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 455, Statutes of 2025.

    10/7/2025Senate

  2. Approved by the Governor.

    10/7/2025legislature

  3. Enrolled and presented to the Governor at 3 p.m.

    9/16/2025legislature

  4. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2740.) Ordered to engrossing and enrolling.

    9/9/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/8/2025Senate

  6. Read third time. Passed. (Ayes 79. Noes 0. Page 2990.) Ordered to the Senate.

    9/8/2025House

  7. Ordered to third reading.

    9/4/2025House

  8. Read third time and amended.

    9/4/2025House

  9. Read second time. Ordered to third reading.

    9/2/2025House

  10. From committee: Do pass. (Ayes 15. Noes 0.) (August 29).

    8/29/2025House

  11. August 20 set for first hearing. Placed on APPR. suspense file.

    8/20/2025House

  12. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 17. Noes 0.) (July 16). Re-referred to Com. on APPR.

    7/16/2025House

  13. From committee: Do pass and re-refer to Com. on INS. with recommendation: To consent calendar. (Ayes 16. Noes 0.) (June 24). Re-referred to Com. on INS.

    6/24/2025House

  14. Referred to Coms. on B. & P. and INS.

    6/5/2025House

  15. In Assembly. Read first time. Held at Desk.

    5/28/2025House

  16. Read third time. Passed. (Ayes 35. Noes 0. Page 1285.) Ordered to the Assembly.

    5/28/2025Senate

  17. Read second time. Ordered to third reading.

    5/13/2025Senate

  18. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

    5/12/2025Senate

  19. Set for hearing May 12.

    5/6/2025Senate

  20. Read second time and amended. Re-referred to Com. on APPR.

    5/1/2025Senate

  21. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 938.) (April 29).

    4/30/2025Senate

  22. Set for hearing April 29.

    4/22/2025Senate

  23. Read second time and amended. Re-referred to Com. on JUD.

    4/22/2025Senate

  24. From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 11. Noes 0. Page 808.) (April 21).

    4/21/2025Senate

  25. Set for hearing April 21.

    4/17/2025Senate

Bill Text

  • Chaptered

    10/7/2025

    HTML

  • Enrolled

    9/12/2025

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  • Amended Assembly

    9/4/2025

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  • Amended Senate

    5/1/2025

    HTML

  • Amended Senate

    4/22/2025

    HTML

  • Amended Senate

    4/1/2025

    HTML

  • Introduced

    2/6/2025

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