A contractor has employees and wants to file a workers' compensation exemption with CSLB. What is the correct result?
Correct Answer
D) The contractor cannot use the exemption while having employees.
CSLB workers' compensation exemption guidance states that a licensee cannot be exempt if it has employees, including home improvement salespersons.
Why This Is the Correct Answer
CSLB workers' compensation exemption guidance states that a licensee cannot be exempt if it has employees, including home improvement salespersons.
Why the Other Options Are Wrong
Option A: The exemption is allowed if the employees work part time.
The exemption is allowed if the employees work part time. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option B: The exemption is allowed if employees bring their own tools, regardless of the regular jobsite supervision arrangement.
The exemption is allowed if employees bring their own tools, regardless of the regular jobsite supervision arrangement. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option C: The exemption is allowed if payroll is handled by software.
The exemption is allowed if payroll is handled by software. misses the specific employer duty in workers' compensation coverage; it does not resolve the pay, reimbursement, status, timing, or record issue.
Memory Technique
Worker money labels stay separate for Helping Maintain: wage, premium, reimbursement, record.
Reference Hint
Study anchor (closed-book): memorize Workers' compensation coverage from CSLB Workers' Compensation Requirements; CSLB Workers' Compensation. / CSLB workers' compensation insurance exemption; Business and Professions Code.; know the rule or calculation trigger without relying on exam-room lookup.
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