California subcontractor insurance & compliance requirements
If you're a general contractor hiring subcontractors in California, here are the certificates and documents you should collect and keep current, and how TradeGuard tracks them automatically.
Checked against official sources on October 11, 2026. See the sources
Documents to collect from subcontractors in California
The core compliance documents a GC should require and keep current for each sub.
Needed for jobs of $1,000 or more, and for smaller jobs that need a permit or use employees. Check the license and its classification at cslb.ca.gov.
Certificate of Insurance for General Liability coverage.
California requires workers' comp from every employer with one or more employees. CSLB's license check shows each licensee's policy or no-employees exemption; C-8, C-20, C-22, C-39 and D-49 licensees must carry it even with no employees.
Used to report what you pay the sub on Form 1099-NEC. For payments made in 2026 or later the IRS reporting threshold is $2,000 (it was $600).
Every California employer needs a written Injury and Illness Prevention Program (8 CCR § 3203); ask subs for theirs.
Some owners and contracts require it for site supervisors.
Verify sub is not debarred from federal contracting.
Public owners require one on larger public contracts; the threshold depends on the owner and the state.
On public works over $25,000, California requires the direct contractor to give a payment bond (Civil Code § 9550).
Often required with a bid on public work; it backs the bidder's promise to sign the contract at the bid price.
The bond the state requires for a contractor's license or registration; ask the sub for a copy.
CSLB licenses contractors by classification. A license is needed for any job of $1,000 or more in labor and materials, and for a smaller job that needs a building permit or where the contractor uses employees. The $1,000 minor work exemption replaced the old $500 one on January 1, 2025.
California operates an approved state OSHA plan. Cal/OSHA, part of the Department of Industrial Relations, runs California's state plan, which also covers state and local government employers.
A $25,000 contractor's bond, the amount CSLB has required since January 1, 2023.
- CSLB: Contractors State License Board
- Cal/OSHA: California Division of Occupational Safety and Health
- DIR: Dept of Industrial Relations (Workers Comp & Public Works)
- DLSE: Division of Labor Standards Enforcement
Summary for California
Cal/OSHA runs California's state plan, and every employer needs a written Injury and Illness Prevention Program. Contractors and subcontractors on public works must register with DIR, apart from small projects ($25,000 or less for construction, $15,000 or less for maintenance). Every licensee keeps workers' comp on file with CSLB or certifies it has no employees.
Track all of this automatically in California
TradeGuard asks each sub for these documents through an upload link and shows what's missing for California, with alerts before anything expires.
No credit card required · Cancel anytime · See how COI tracking works
California compliance FAQ
Do subcontractors need a contractor license in California?+
CSLB licenses contractors by classification. A license is needed for any job of $1,000 or more in labor and materials, and for a smaller job that needs a building permit or where the contractor uses employees. The $1,000 minor work exemption replaced the old $500 one on January 1, 2025.
Does California follow federal OSHA or a state OSHA plan?+
California runs its own OSHA-approved state plan. Cal/OSHA, part of the Department of Industrial Relations, runs California's state plan, which also covers state and local government employers.
Is a surety bond required for contractors in California?+
Yes. A $25,000 contractor's bond, the amount CSLB has required since January 1, 2023.
This page is general information, not legal advice. Requirements change; confirm current rules with the relevant California agencies before relying on them.
Sources
Checked against these on October 11, 2026.
- CSLB industry bulletin 24-07: minor work exemption raised to $1,000
- Business and Professions Code § 7048 (minor work)
- CSLB: Bond requirements ($25,000)
- CSLB: Workers' compensation requirements
- DIR: Workers' compensation FAQs for employers (Labor Code § 3700)
- DIR: Public works contractor registration
- 8 CCR § 3203: Injury and Illness Prevention Program
- Civil Code § 9550 (payment bonds on public works)
- OSHA: California State Plan
- CSLB: Check a license
- IRS: Instructions for Forms 1099-MISC and 1099-NEC ($2,000 threshold)