A contractor's license was suspended for 90 days. During this period, the contractor continues to perform work under their license. What is the maximum fine that can be imposed under B&P Code Section 7028.1?
Correct Answer
B) $15,000
Under B&P Code Section 7028.1, contracting without a valid license or while suspended can result in fines up to $15,000.
Why This Is the Correct Answer
B&P Code Section 7028.1 sets the maximum civil penalty for contracting without a valid license (including contracting while suspended) at $15,000 per violation. This is a key statutory amount that the CSLB exam tests directly.
Why the Other Options Are Wrong
Option A: $20,000
$20,000 is not the correct maximum penalty under B&P Code Section 7028.1. This figure exceeds the statutory cap. Candidates who guess 'highest number = most serious offense' will be misled here.
Option C: $10,000
$10,000 is below the statutory maximum and represents a common incorrect guess that confuses this with other penalty thresholds in California contractor law.
Option D: $5,000
$5,000 significantly understates the penalty. This figure may be confused with smaller administrative fines or citation penalties found elsewhere in contractor regulations.
Memory Technique
15,000 = '15' as in 'you're on the hook for fifteen grand if you work while suspended.' Think of a 15-day suspension penalty per thousand dollars — $15,000 total.
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A contractor employs 15 workers across multiple job sites. The total annual payroll is $850,000 with a workers' comp rate of 4.1%. If they self-insure with a deposit requirement of 125% of estimated annual premium, what deposit is required?