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New Law Will Require All Roofing Contractors with Active Licenses to Have Workers' Compensation Coverage

SACRAMENTO - A new law signed by Governor Arnold Schwarzenegger on Friday May 26 affects roofing contractors in California. Assembly Bill (AB) 881 contains new licensing requirements for all 6,000 licensees with an active Roofing (C-39) classification. If you hold the Roofing (C-39) classification, you must take action as outlined below or your right to perform roofing work in California will be suspended until you comply with the new law.

Beginning January 1, 2007, all active licensees holding the Roofing (C-39) classification must have either a valid Certification of Workers' Compensation Insurance or a valid Certification of Self-Insurance on file with the Contractors State License Board (CSLB). AB 881 amends Section 7125 of the Business and Professions Code to require that all Roofing (C-39) contractors carry workers' compensation coverage effective January 1, 2007, regardless of whether or not they have employees. Failure to have one of the required certifications on file with the CSLB will result in the removal of the Roofing (C-39) classification from a license with multiple classifications or in the suspension of a license where the sole classification is the Roofing (C-39) classification. No exemptions will be granted.

NOTE: Inactive Roofing (C-39) contractors will not be subject to this requirement as long as they remain in inactive status. In order to return to active status, they would need to have one of the required certifications on file with the Board.

In addition, AB 881 adds Section 11665 to the Insurance Code, requiring insurers who issue workers' compensation insurance to Roofing (C-39) contractors to perform an annual payroll audit for the contractor. The insurer may impose a surcharge on the policyholder for the audit.

The new workers' compensation insurance requirements imposed by AB 881 will remain in effect until January 1, 2011.

If you have questions about these requirements, please contact your workers' compensation insurance provider or the Contractors State License Board's Workers' Compensation Unit at:

Contractors State License Board
9821 Business Park Drive
Sacramento, California 95827

Mailing Address: P.O. Box 26000
Sacramento, California 95826

 

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