A Class B contractor wants to subcontract electrical work exceeding $500 to a Class C-10 electrical contractor. What is required under California law?
Correct Answer
A) The subcontractor must have an active C-10 license and workers' compensation insurance
Under B&P Code Section 7059, subcontractors performing work over $500 must be properly licensed and carry workers' compensation insurance as required by law.
Why This Is the Correct Answer
Under B&P Code Section 7059, any subcontractor performing work valued over $500 must hold an active license in the appropriate classification AND carry workers' compensation insurance as required by law. Both conditions must be met — a C-10 license covers the scope, and workers' comp is mandatory whenever employees are involved.
Why the Other Options Are Wrong
Option B: Only a valid contractor's license is required for the subcontractor
A valid contractor's license alone is insufficient. The law also requires workers' compensation insurance for subcontractors with employees. Omitting workers' comp violates both B&P Code Section 7059 and California Labor Code requirements.
Option C: The Class B contractor can perform the work without additional licensing
A Class B general building contractor cannot perform specialty electrical work that requires a C-10 classification. Doing so would constitute unlicensed contracting in that specialty, exposing the contractor to civil penalties and license discipline.
Option D: A special permit from the local building department is sufficient
A local building department permit covers the work itself, not the contractor's legal authority to perform it. Subcontractors must still hold the proper CSLB license and carry required insurance regardless of permits issued.
Memory Technique
Think '$500 Threshold = Two Requirements': (1) Active specialty license + (2) Workers' comp insurance. Both must exist before the sub picks up a tool.
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