A Responsible Managing Employee (RME) differs from a Responsible Managing Officer (RMO) in that an RME must:
Explanation
An RMO is an officer of the licensed entity; an RME is a bona fide employee permanently employed by it, and 16 CCR §823 requires a qualifier who is not a bona fide owner to exercise direct supervision and control for at least 32 hours a week or 80 percent of the hours the business operates, whichever is less. Ownership of 10 percent or more is what relieves a qualifier of that hours test, so it describes the exemption rather than the RME. Family ties appear nowhere in §7068.1. And the licence class follows the work the entity is qualified for, not a personal credential the RME must hold.
Law Reference: B&P §7068.1; 16 CCR §823This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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