EmploymentQuestion 992 of 1605

Beyond civil penalties, how can wage-and-hour or misclassification violations affect a contractor's CSLB license?

a.Serious or repeated labor-law violations can be grounds for CSLB disciplinary action against the license
b.They never affect licensing
c.They only affect the contractor's tax return
d.They automatically transfer the license to the employee

Explanation

A contractor's compliance with labor laws is tied to licensure. Willful or repeated violations of wage-and-hour laws, misclassification, or failure to maintain required workers' compensation coverage can be grounds for CSLB investigation and disciplinary action, including citation, suspension, or revocation. Labor-law violations therefore carry both direct penalties and licensing consequences.

Law Reference: Labor Code §226.8; §2775; contractor licensing consequences

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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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