A contractor with a workers' compensation exemption hires one employee for a remodel crew. What happens to the exemption status?
Correct Answer
B) Coverage needed.
CSLB states that upon employing anyone subject to California workers' compensation laws, the exemption is no longer valid and proof of coverage is required.
Why This Is the Correct Answer
CSLB states that upon employing anyone subject to California workers' compensation laws, the exemption is no longer valid and proof of coverage is required.
Why the Other Options Are Wrong
Option A: It stays valid.
It stays valid. misses the specific employer duty in workers' compensation exemption; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option C: Keep the exemption on file until the next renewal even after a covered worker is hired.
Keep the exemption on file until the next renewal even after a covered worker is hired. misses the specific employer duty in workers' compensation exemption; it does not resolve the pay, reimbursement, status, timing, or record issue.
Option D: Only permit changes.
Only permit changes. misses the specific employer duty in workers' compensation exemption; it does not resolve the pay, reimbursement, status, timing, or record issue.
Memory Technique
If the job needs cslb, the employer needs Checking License proof.
Reference Hint
Study anchor (closed-book): memorize Workers' compensation exemption from CSLB Workers' Compensation Requirements; CSLB Workers' Compensation. / CSLB workers compensation requirements when employing anyone; know the rule or calculation trigger without relying on exam-room lookup.
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