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Bill

SB 847

Workers' compensation: uninsured employer: transfer of real property.

2025-2026 Regular Session Introduced by Eloise Reyes

SB 847 restricts uninsured California employers from transferring real property without addressing workers' compensation liabilities, protecting injured workers' compensation claims.

Chaptered by Secretary of State. Chapter 790, Statutes of 2025.
#workers'compensation #transferofrealproperty #uninsuredemployer
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WeVote Research Nonpartisan
Bill Summary · SB 847

Legislative bill overview

SB 847 modifies California's workers' compensation system by establishing consequences for uninsured employers who transfer real property. The bill creates a mechanism to hold business owners accountable when they fail to maintain required workers' compensation insurance before selling or transferring real estate assets.

Why is this important

Workers' compensation insurance protects employees injured on the job by covering medical expenses and lost wages. Uninsured employers create financial risk for workers who have no safety net if injured. This bill addresses a loophole where employers could divest assets and avoid liability for unpaid workers' compensation claims, leaving injured workers without recourse.

Potential points of contention

  • Property transfer restrictions: The bill may complicate legitimate real estate transactions by imposing requirements or liens related to workers' compensation status, potentially affecting small business owners' ability to sell property
  • Enforcement clarity: Questions remain about how the state will verify compliance and whether the burden falls on property buyers to verify seller insurance status
  • Retroactive liability: Unclear whether the law applies to property transfers before the bill's enactment or only prospectively, creating potential disputes over past transactions

Compiled from official sources — confirm details with the bill’s official record.

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