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A California sole-proprietor contractor validly filed a no-employees workers’ compensation exemption, then hires a part-time employee subject to California workers’ compensation law. No out-of-state or joint-venture exception is involved. What must be addressed?

Correct Answer

C) Workers’ compensation coverage and the now-invalid exemption.

A covered employee makes the no-employees exemption invalid. Arrange required workers’ compensation coverage and submit the required evidence to CSLB. Part-time status does not preserve the exemption. Source: https://web.cslb.ca.gov/Contractors/Maintain_License/Workers_Compensation.aspx

Answer Options
A
Only the customer’s progress-payment schedule.
B
Only the supplier’s lien release.
C
Workers’ compensation coverage and the now-invalid exemption.
D
Nothing until the employee becomes full-time.

Why This Is the Correct Answer

A covered employee makes the no-employees exemption invalid. Arrange required workers’ compensation coverage and submit the required evidence to CSLB. Part-time status does not preserve the exemption. Source: https://web.cslb.ca.gov/Contractors/Maintain_License/Workers_Compensation.aspx

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