A responsible managing employee qualifies a contractor's licence. To count as 'actively engaged' in the classification, that employee must work at least:
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)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
Practice all 1632 questions free — no signup required.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Related questions on this topic
- The Contractors State License Board's own membership is fixed by statute. Which statement best describes its statutory composition?
- Specialty (Class C) licence classifications are set by statute and Board regulation. Which of the following is the BEST description of what a C-specialty licence authorizes?
- An unlicensed person posts online ads offering kitchen-remodel services for $20,000 and lists a fake license number. Which two statutes most directly reach the advertisement itself?
- An applicant for a contractor's license must generally show how many years of journey-level experience in the classification applied for within the 10 years immediately preceding the application?
- Under Bus. & Prof. Code §7030.5, a licensed contractor must include which of the following on all contracts, subcontracts, and bids?
- Under the CSLB's classification rules, a C-specialty contractor may take a prime contract that involves work outside its classification only if:
Last reviewed: · editorial process