As a contractor the learning curve really never ends. Our first contractor discovers that time has run out on his one time option, because sometimes the steps in the licensing process might reveal the unknown! Another Sole Owner seeks a pathway to leaving a legacy…
Q: We have a situation going on where our Qualifying Individual left the company back in March. As you know, we are allowed 90 days to replace the person. I had read in your previous articles about having an employee who has worked for the company for over five years in a supervisory capacity be permitted to become the Qualifying Individual without having to take any exams.
It took us some time to decide who we wanted to designate so when we chose someone and submitted her application, we requested the 90-day extension to complete the process. The extension was granted and the process was just about complete, only needing our newly designated Responsible Managing Employee (RME) to get fingerprinted, and she resigned from the company!
Now we are determining who to designate and are concerned about our time running out. When we submit yet another new application, are we permitted to ask for another 90 days to complete the process?
A: No, the CSLB only allows for a one time 90-day extension.
Q: Is there a way to add my son to my Sole Owner license so that he can eventually take it over and be “grandfathered” in after five years?
A: You cannot add people to a Sole Owner license. As long as your son works for you as a ‘W-2’ paid employee, he will be able to apply for his own license after five years and request a Waiver of the exams as well as request for your license number to be re-issued to him if you plan to retire or step down.
Q: I am going to be hiring someone with an Inactive license to be the RME for my company license, We are putting together the agreement now. Does she need to be a W-2 employee of the company, or can she be an Independent Contractor?
A: RME’s are required to be bona-fide employees of the licensee so she needs to be a ‘W-2’ employee.