What is SB 291?
California Senate Bill 291 (SB 291) took effect January 1, 2026. It dramatically increased the minimum financial penalties for licensed contractors who operate without required workers' compensation insurance. The previous penalties were relatively modest misdemeanor fines; SB 291 raised the minimum to $10,000 for sole proprietors and $20,000 for corporations, LLCs, and partnerships.
Who is Affected?
SB 291 applies to all California licensed contractors required to carry workers' compensation. This includes all contractors with employees, all Phase 1 SB 216 trades (C-8, C-20, C-22, C-39, C-61/D-49) even if working solo, and all LLC contractors.
How to Comply
The most common compliance solutions are: (1) a standard WC policy if you have employees, (2) a ghost policy if you're a solo contractor in a Phase 1 trade, or (3) a WC policy with $0 payroll. Call Asena Capital at (858) 925-9555 for timely compliance.