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An active California sole-proprietor contractor hires a home improvement salesperson as an employee subject to California workers’ compensation law. What is the problem with continuing to claim CSLB’s no-employee exemption?

Correct Answer

C) CSLB says a licensee cannot be exempt if it has employees, including home improvement salespersons.

CSLB expressly includes employed home improvement salespersons when describing workers who prevent the exemption. Waiting until renewal or supplying a driver’s license does not resolve coverage and filing requirements. Source: https://web.cslb.ca.gov/OnlineServices/WebApplication/InteractivePDFs/WorkersCompensationExemption.aspx

Answer Options
A
Keep the exemption on file until the next renewal even after a covered worker is hired.
B
Submit the policy to the insurer but leave the CSLB certificate-holder information uncorrected.
C
CSLB says a licensee cannot be exempt if it has employees, including home improvement salespersons.
D
The salesperson's driver's license replaces the certificate requirement.

Why This Is the Correct Answer

CSLB expressly includes employed home improvement salespersons when describing workers who prevent the exemption. Waiting until renewal or supplying a driver’s license does not resolve coverage and filing requirements. Source: https://web.cslb.ca.gov/OnlineServices/WebApplication/InteractivePDFs/WorkersCompensationExemption.aspx

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