A Responsible Managing Employee (RME) qualifying a license must meet which key employment condition?
Explanation
16 CCR §823, implementing B&P §7068, requires an RME to be a permanent, bona fide employee actively engaged at least 32 hours per week or 80 percent of the hours the business operates, whichever is less. (a) moves an ownership figure into the wrong rule: 20 percent is the §7068.1 common-ownership threshold that lets one person qualify more than one firm, and it is an RMO question in any event — an RME is an employee, not an owner. (b) is the 'rental qualifier' the statute exists to stop; being reachable is not active engagement. (d) fails on its face, because an independent contractor is by definition not an employee of the firm.
Law Reference: B&P Code §7068 / 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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