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CSLB Steps Up Enforcement of Workers’ Compensation Insurance Laws for Roofers (C-39) License Classification

SACRAMENTO -The Contractors State License Board (CSLB) reminds C-39 Roofing contractors about their legal obligation to carry adequate workers’ compensation insurance coverage for their employees or a Certificate of Self-Insurance.

Lack of workers’ compensation insurance is a serious problem for roofing company employees and sole-owner roofers. Additionally, it causes unfair competition for the many C-39 contractors who obey California workers’ compensation and safety laws, as well as unemployment insurance, permit, wage, and work hour regulations.

CSLB has received several complaints about C-39 contractors who may be involved in premium insurance fraud by not accurately reporting the number of people they employ and, in doing so, are also failing to comply with Business and Professions Code Section 7125, which requires contractors to carry workers’ compensation insurance. Failure to adequately insure employees results in the automatic suspension of a C-39 license, and possible criminal prosecution that could result in a felony conviction.

In light of increasing complaints, CSLB is accelerating its enforcement activities to make sure roofers comply with state law. CSLB is partnering in this effort with the Employment Development Department, the California Department of Insurance (DOI), the Division of Labor Standards Enforcement, insurance carriers, local building officials, the California Building Officials (CALBO) organization, the roofing industry, and the DOI Premium Insurance Fraud Task Force. CSLB will also check for compliance with local and state permitting laws.

All C-39 contractors should be prepared to provide their customers with proof of a valid workers’ compensation insurance policy or Certificate of Self-Insurance, and verify that they have taken out the appropriate project permits.

Anyone who suspects that a C-39 contractor is not in compliance with these laws can submit a CSLB complaint form or contact Alan Dal Porto in CSLB’s Enforcement division at 916-255-4001.

 

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