Disaster Bid Scams, Worker’s Compensation & NV Reciprocity

With the ‘Silver’ state in his sights, a ‘Golden’ state contractor will learn if his license number is a good bet in neighboring Nevada. The countdown is on for another contractor with concerns about his Worker’s Compensation coverage, and we ‘smoke out’ a rare alert for both contractors and homeowners…

Q:  My husband has an inactive “B” (General Building) license in California and he is interested in transferring it to Nevada.  I read that they have a reciprocal agreement so what is exactly involved in transferring the license?

A:  In order to qualify for reciprocity in Nevada, your husband will need to show that he has been actively licensed for five out of the last seven years.  If he meets that requirement the Trade Exam is waived, and he would only be required to take the Business/Management Exam.  When applying for reciprocity, he would still need to go through the application process, provide a financial statement, and do fingerprinting and background check.

However, if his license has been inactive for over two years out of the last seven years then in addition to the items mentioned above, both the Trade and the Business/Management exams would be required, and he would also need to obtain references and complete a resume to verify his work experience.


Q:  I’ve had a Sole Owner contractor’s license for a couple years now and as things have picked up lately I hired an employee about 6 weeks ago.  I have a Worker’s Comp policy in place, however I have not submitted the certificate to the CSLB.  A homeowner recently asked why my license shows that I am Exempt from Worker’s Compensation Insurance when I have an employee on the job with me.  I showed her my certificate but she questioned whether my license was valid since it doesn’t show the policy on there yet.  Am I okay to be working?


A:  First of all, licensees are required to submit proof of Workers’ Compensation Insurance coverage to the CSLB.  I assume that you obtained Worker’s Comp coverage immediately upon hiring your new employee.  The CSLB will back date the policy on the license up to 90 days, so assuming your policy effective date coincides with when you hired your employee, you should be in compliance.

That being said, as far as the homeowner is concerned, she can choose whether or not she is satisfied with what you’ve provided or not.  Technically your license is current and active and you have a valid insurance policy to cover your employee, so the only thing left to do is notify the CSLB, and preferably before the effective date goes beyond the 90 days!

SCAM ALERT: Attention Contractors & Homeowners:

As most are aware, California wildfires have left many areas burned and damaged. While most businesses are honest and have good intentions, unfortunately there are many unscrupulous individuals who prey on victims of natural disasters.  Working as an unlicensed contractor during a state of emergency is a felony.  Also, during states of emergency, it is illegal for businesses to increase prices of essential goods and services by more than 10 percent.  That applies to goods or services used for emergency cleanup, building material, housing, etc.