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A contractor filed a workers' compensation exemption but then hires a part-time employee. What must be addressed?

Correct Answer

C) Coverage status.

Hiring an employee changes workers' compensation obligations and the exemption status must be addressed.

Answer Options
A
Release payment based only on the contractor's assurance where a contractor filed a workers' compensation exemption but then hires a part-time employee, without verifying the claimant documents before payment.
B
Accept an informal payment memo where a contractor filed a workers' compensation exemption but then hires a part-time employee, instead of requiring the document that matches the payment status.
C
Coverage status.
D
Wait until final closeout to review claimant or insurance paperwork where a contractor filed a workers' compensation exemption but then hires a part-time employee.

Why This Is the Correct Answer

Hiring an employee changes workers' compensation obligations and the exemption status must be addressed.

Why the Other Options Are Wrong

Option A: Release payment based only on the contractor's assurance where a contractor filed a workers' compensation exemption but then hires a part-time employee, without verifying the claimant documents before payment.

Release payment based only on the contractor's assurance where a contractor filed a workers' compensation exemption but then hires a part-time employee, without verifying the claimant documents before payment. misses the specific employer duty in workers' compensation exemption; it does not resolve the pay, reimbursement, status, timing, or record issue.

Option B: Accept an informal payment memo where a contractor filed a workers' compensation exemption but then hires a part-time employee, instead of requiring the document that matches the payment status.

Accept an informal payment memo where a contractor filed a workers' compensation exemption but then hires a part-time employee, instead of requiring the document that matches the payment status. misses the specific employer duty in workers' compensation exemption; it does not resolve the pay, reimbursement, status, timing, or record issue.

Option D: Wait until final closeout to review claimant or insurance paperwork where a contractor filed a workers' compensation exemption but then hires a part-time employee.

Wait until final closeout to review claimant or insurance paperwork where a contractor filed a workers' compensation exemption but then hires a part-time employee. misses the specific employer duty in workers' compensation exemption; it does not resolve the pay, reimbursement, status, timing, or record issue.

Memory Technique

Worker money labels stay separate for Updating Cslb: wage, premium, reimbursement, record.

Reference Hint

Study anchor (closed-book): memorize Workers' compensation exemption from CSLB 2026 Law Book; CSLB workers' compensation guidance; California. / CSLB workers compensation exemption guidance; know the rule or calculation trigger without relying on exam-room lookup.

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