CSLB Workers' Compensation and Employment Law 1 — Questions and Answers
Question 1: In California, workers' compensation insurance is required for contractors who have:
- More than 5 employees
- More than 10 employees
- Any employees, including part-time workers (Correct answer)
- Full-time employees only
Correct answer: Any employees, including part-time workers
California Labor Code requires every employer with one or more employees to carry workers' compensation insurance, regardless of whether workers are full-time or part-time.
Question 2: A licensed contractor who is a sole proprietor with no employees may qualify for a workers' compensation waiver if they:
- Have been in business for more than 5 years
- Hold only a Class C specialty license
- File a self-certification with the CSLB and have no employees (Correct answer)
- Carry a $1 million general liability policy
Correct answer: File a self-certification with the CSLB and have no employees
Sole proprietor contractors with no employees may submit a self-certification exemption to the CSLB, confirming they have no employees and waiving workers' compensation coverage for themselves.
Question 3: California's workers' compensation system is considered 'exclusive remedy,' meaning:
- Injured workers can only be treated by workers' comp approved doctors
- Workers' comp benefits are generally the sole remedy against an employer for work injuries (Correct answer)
- Only one insurance carrier may provide workers' comp in California
- Workers must exhaust comp benefits before suing third parties
Correct answer: Workers' comp benefits are generally the sole remedy against an employer for work injuries
The exclusive remedy doctrine means that workers' compensation benefits are typically the only remedy an injured worker has against their employer, barring a lawsuit for negligence.
Question 4: Under California law, an employer must report a work-related injury to the claims administrator within:
- 24 hours
- 3 days
- 5 days (Correct answer)
- 10 days
Correct answer: 5 days
California Labor Code §3700.1 requires employers to report work-related injuries to their workers' compensation claims administrator within 5 days of knowledge of the injury.
Question 5: Which document must a California employer provide to an injured employee within 24 hours of a work-related injury?
- A DWC-1 claim form (Correct answer)
- A list of all approved medical providers
- Their workers' compensation policy number
- A copy of the company's IIPP
Correct answer: A DWC-1 claim form
California Labor Code §5401 requires employers to provide the DWC-1 workers' compensation claim form to an injured employee within one working day of learning about the injury.
Question 6: California law classifies most construction workers as employees rather than independent contractors under which standard?
- IRS 20-factor test
- ABC test (Assembly Bill 5) (Correct answer)
- Common law right-to-control test
- Economic realities test
Correct answer: ABC test (Assembly Bill 5)
California's AB 5 established the ABC test, which presumes workers are employees unless the hiring entity can prove all three parts: (A) freedom from control, (B) work outside usual business, and (C) independent business.
CSLB Workers' Compensation and Employment Law 1
In California, workers' compensation insurance is required for contractors who have: