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An active California sole-proprietor contractor with a valid no-employee exemption hires a remodel worker subject to California workers’ compensation law. What happens to the exemption status?

Correct Answer

B) Coverage needed.

Hiring a worker subject to California workers’ compensation law ends the no-employee basis for exemption. Arrange coverage and the required proof; do not wait for renewal. Source: https://web.cslb.ca.gov/Contractors/Maintain_License/Workers_Compensation.aspx

Answer Options
A
It stays valid.
B
Coverage needed.
C
Keep the exemption on file until the next renewal even after a covered worker is hired.
D
Only permit changes.

Why This Is the Correct Answer

Hiring a worker subject to California workers’ compensation law ends the no-employee basis for exemption. Arrange coverage and the required proof; do not wait for renewal. Source: https://web.cslb.ca.gov/Contractors/Maintain_License/Workers_Compensation.aspx

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