Business & LicensingQuestion 621 of 1632

A responsible managing employee qualifies a contractor's licence. To count as 'actively engaged' in the classification, that employee must work at least:

a.Forty hours every week, with no exception of any kind at all
b.Thirty-two hours a week, or 80 percent of operating hours
c.Twenty hours a week, half of a normal full-time week
d.Ten hours a week, if he qualifies more than one licence at once

Explanation

§7068(c)(1) defines a responsible managing employee as an individual who is a bona fide employee of the applicant and actively engaged in the classification of work for which that person is the qualifying individual, and §7068(c)(2) then defines both halves of the phrase: a bona fide employee is one permanently employed by the applicant, and actively engaged means working 32 hours per week, or 80 percent of the total hours per week that the applicant's business is in operation, whichever is less. The 'whichever is less' is what (a) and (c) miss from opposite sides — (a) picks a round 40-hour week the statute never uses and drops the operating-hours alternative that a part-time business relies on, while (c) simply halves the figure. (d) describes the arrangement the licence law exists to stop: qualifying more than one firm is governed by §7068.1, which requires common ownership, a subsidiary or joint venture relationship, or the same majority of partners, officers or managers, and caps the total at three firms in any one-year period — it reduces nobody's hours. A responsible managing officer's duty is stated differently again: §7068.1(a) requires supervision and control of the construction operations, defined at §7068.1(c)(3)-(4) by the activities involved rather than by a weekly hour count, and §7068.1(e) makes a violation a misdemeanour with a fine of $3,000 to $5,000.

Law Reference: Bus. & Prof. Code §7068(c)(1)-(2); §7068.1(a), (c)(3)-(4), (e)

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