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An active California contractor operating as a sole proprietor has employees subject to California workers’ compensation law. Can the contractor file a no-employee exemption with CSLB?

Correct Answer

D) The contractor cannot use the exemption while having employees.

The no-employee exemption cannot be used while the contractor employs covered workers. Part-time hours, personal tools and payroll software do not establish that exemption. Source: https://web.cslb.ca.gov/OnlineServices/WebApplication/InteractivePDFs/WorkersCompensationExemption.aspx

Answer Options
A
The exemption is allowed if the employees work part time.
B
The exemption is allowed if employees bring their own tools, regardless of the regular jobsite supervision arrangement.
C
The exemption is allowed if payroll is handled by software.
D
The contractor cannot use the exemption while having employees.

Why This Is the Correct Answer

The no-employee exemption cannot be used while the contractor employs covered workers. Part-time hours, personal tools and payroll software do not establish that exemption. Source: https://web.cslb.ca.gov/OnlineServices/WebApplication/InteractivePDFs/WorkersCompensationExemption.aspx

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