Who Is Exempt From Workers’ Compensation in California? | WIMC

Across the United States, employees are entitled to compensation if they sustain injuries while on the job. California stands out for offering some of the most comprehensive workers’ compensation coverage in the nation. State law mandates that any employer with at least one employee must secure workers’ compensation insurance.

The definition of “employee” in California is notably broad, encompassing various types of workers, such as:

While California's workers’ compensation coverage is extensive, there are exceptions. Under California Labor Code, Division 4, Part 1, Chapter 2, Section 3352, specific categories of workers are exempt from these requirements. These exempt individuals include:

• Sole proprietors and business owners (excluding roofers)
• Independent contractors, including gig workers
• Workers compensated with food and shelter rather than monetary pay
• Domestic workers who are related to their employers
• Volunteer workers, including those at nonprofit organizations
• Deputy sheriffs and deputy clerks
• Amateur sports officials and students participating in amateur sports

Providing workers’ compensation insurance can impose a significant financial burden on businesses, particularly small ones. To reduce costs associated with workers’ comp, overtime, and other employee benefits, some employers hire independent contractors instead of full-time employees.

Independent contractors are self-employed individuals who perform services for a business but are not considered employees. They are responsible for their own benefits and tax obligations. However, they often fulfill the same tasks that employees would perform.

Recent changes in California labor law have made it crucial for workers to know whether they are correctly classified as employees or independent contractors. Misclassification can lead to workers losing out on critical benefits, such as workers’ compensation.

These legislative changes have had a significant impact on various industries, particularly the gig economy. Under California Assembly Bill 5, a worker must meet all three of the following criteria to be classified as an independent contractor:

The worker is free from control and direction in performing services.

The work performed is outside the usual course of the hiring company’s business.

The worker is customarily engaged in an independently established trade, occupation, or business.

In some situations, businesses may misclassify employees as independent contractors to avoid providing benefits, or they may mistakenly classify contractors as employees. If you believe your classification is incorrect, you may still be eligible for workers’ compensation benefits in the event of a workplace injury.

Most self-employed individuals in California are not required to purchase workers’ compensation insurance. However, there is one key exception: roofers.

Roofing is ranked as the third most dangerous job in the U.S., according to the US Department of Labor data on dangerous occupations. Because of the high risk involved, California law mandates that independent roofing contractors carry workers’ compensation insurance. This requirement ensures that injured roofers have access to medical care and other necessary support following an accident.

Navigating workers’ compensation laws can be complicated, especially if you are dealing with misclassification or an injury. Understanding your legal rights is essential to ensuring you receive the benefits you are entitled to under California law.

At Invictus Law, we specialize in helping individuals understand their rights and pursue compensation for workplace injuries. Whether you need to verify your classification status or file a workers’ compensation claim, our experienced team is here to assist you every step of the way.

If you’ve been injured at work and are ready to take the next steps, contact our board-certified workers’ compensation specialists today to discuss your case.