State Line Rule & Reciprocity, Worker Comp Exemption, Fingerprinting for LLC’s and Veteran’s Industry Expert Program

Like having a ‘ticket to ride’ you can’t bid without one. The ‘son’ won’t shine on the job without ‘insuring’ Dad’s safety ‘policy’ is in place. If you can handle the ‘truth’ there is a special alert for Veterans, as CSLB is looking for a few ‘good’ contractors…

Q:  You helped our company add the “B” (General Building) classification to our license at the end of last year and I’m wondering if the “B” license allows us to bid work outside of California in neighboring states? If not, can it work the opposite to where a contractor in a neighboring state can bid work in California without a contractor’s license?

A:  Your California license, regardless of classification(s) held, is only valid within the State of California. Likewise, Contractors in neighboring States cannot bid or perform construction work over $500 without a valid California Contractors License.

California has a limited reciprocal agreement with it’s neighboring States, including Nevada, Arizona, and Utah.  If you meet the requirements, you are eligible for waiving the trade exam when applying for a license.

Q:  I am a small independent contractor with no employees.  I have an Exemption from Worker’s Comp on file with the CSLB.  A homeowner recently accepted my bid for a larger job, and I think I’m going to need some help to complete the project in the time frame they are requesting.  My son just graduated from high school, is it okay to bring him along to help?

A:  In order to have anyone helping you on jobs, whether it be a relative, friend, etc. you absolutely must have a Worker’s Compensation Insurance policy in place.  Any person who accompanies you to a job site to do work is considered your “employee” under State law. It protects you, your workers and your client.

Q:  We are going to convert our California Contracting company from a corporation to a Limited Liability Company (LLC).  We obtained the license prior to the fingerprinting requirement, so the CSLB informed us that when we apply for the new license all individuals listed on the application will need to get fingerprinted.  What if instead of applying for a new license, we apply to transfer the license number?  So it would be the same people on the current license, same entity, same EIN number, etc.  Would fingerprinting still be required?

A:  Yes, fingerprints are still required to be on file even if you are requesting to keep the same license number.  Even by transferring the number, you are still applying for a “new” license and requesting the number to be re-issued.

Attention Veteran Contractors:  The CSLB is currently looking for veteran contractors in the central part of the state to join the Industry Expert Program (IEP), which is a group of trade professionals who help the CSLB with investigating consumer complaints.  Specifically, they are looking for “C-57” Well Drilling contractors in the Fresno area, and “C-8” Concrete, “C-12” Earthwork and Paving, and “C-23” Ornamental Metal Contractors in the Sacramento area.