CSLB Law & Business Key Numbers and Deadlines (2026)
The deadlines, dollar amounts and penalty ranges the exam asks about, grouped by exam section. Each row links to the law it comes from, so you can read the exact words. Some numbers changed recently, so older study materials may show old ones. Where that matters, the note under the item says so.
Not affiliated with CSLB. Study material only.
Section 1: Business Organization and Licensing
| What | Number or deadline | The law |
|---|---|---|
| Minor work exception (no contractor license needed)Labor and materials. Not if it needs a building permit, you advertise, or hire help. CSLB's 2023 guide still says $500. | Less than $1,000 | Bus. & Prof. Code §7048(a), (c) |
| Contractor's bondNeeded to get, renew or keep a license. Not needed while the license is inactive. | $25,000 | Bus. & Prof. Code §7071.6(a) |
| Qualifier's bond (qualifier is not the owner or a general partner)Separate from the contractor's bond. Not needed if the qualifier owns 10%+ of the corporation's voting stock or the LLC. | $25,000 | Bus. & Prof. Code §7071.9(a)(1), (c), (d) |
| Report changes to license information (address, personnel, name)In writing to the registrar. Late notice is grounds for discipline. | Within 90 days | Bus. & Prof. Code §7083(a) |
| Notify CSLB and replace a qualifier who leavesIf not replaced in 90 days, the license is suspended or the class removed. One 90-day extension in limited cases. | 90 days | Bus. & Prof. Code §7068.2(a) |
| Maximum number of firms one person may qualify forExtra firms need at least 20% common ownership, a subsidiary or joint venture, or mostly the same officers. | 3 firms in any one-year period | Bus. & Prof. Code §7068.1(b) |
| Qualifier work experienceAs a journeyperson, foreperson, supervising employee or contractor in the trade applied for. | 4 years within the last 10 years | CSLB, Get Licensed to Build, General Requirements Q1, p. 3 |
| Contracting without a license: first convictionA misdemeanor. Later convictions bring larger fines and longer jail terms. | Up to $5,000 fine and/or 6 months in county jail | Bus. & Prof. Code §7028(b) |
| License term before renewalCounted from the last day of the month the license was issued. | 2 years | Bus. & Prof. Code §7140 |
| Inactive license termNo bond, qualifier or workers' comp needed while inactive, but you may not work as a contractor. | 4 years | Bus. & Prof. Code §7076.5(c) |
Section 2: Business Finances
| What | Number or deadline | The law |
|---|---|---|
| Monthly federal deposit schedule: lookback-period taxForm 941 taxes for the 4 lookback quarters. More than $50,000 means the semiweekly schedule. | $50,000 or less | IRS Pub. 15 (2026), section 11, Monthly Deposit Schedule |
| Monthly depositor: payroll tax deposit dueFor taxes on wages paid during the month. | 15th day of the following month | IRS Pub. 15 (2026), section 11, Monthly Deposit Schedule |
| Tax accumulated in a deposit period that forces a next-day depositA running total, not one payday's tax. Deposit by the next business day; a monthly depositor then becomes semiweekly. | $100,000 or more | IRS Pub. 15 (2026), section 11, $100,000 Next-Day Deposit Rule |
| Social security tax rate and wage base (2026)2026 figures; check the current year's Pub. 15. | 6.2% each for employer and employee, on wages up to $184,500 | IRS Pub. 15 (2026), section 9, Tax rates and the social security wage base limit |
| Medicare tax rateEmployees also have 0.9% Additional Medicare Tax withheld on wages over $200,000 in a year. | 1.45% each for employer and employee, no wage limit | IRS Pub. 15 (2026), section 9, Tax rates and the social security wage base limit |
| Federal unemployment (FUTA) tax (2026)Employer only. With the full 5.4% state credit the net rate is 0.6%; the credit is smaller in a credit reduction state. | 6.0% on the first $7,000 per employee | IRS Pub. 15 (2026), section 14, Figuring FUTA tax |
| California Unemployment Insurance (UI) tax (2026)Employer-paid. Rates can range from 1.5% to 6.2%, based on experience rating and the UI Fund. | First $7,000 per employee; new employers pay 3.4% for 2 to 3 years | EDD DE 44 (2026), Unemployment Insurance, Who Pays It?, p. 8 |
| California State Disability Insurance (SDI) withholding (2026)Withheld from the employee's pay. No SDI wage limit since January 1, 2024. | 1.3% of all subject wages | EDD DE 44 (2026), State Disability Insurance Tax, p. 8 |
| Register with EDD as an employerPaying over $100 in a calendar quarter makes the business a subject employer. Register online or by form. | Within 15 days after paying over $100 in wages in a quarter | EDD DE 44 (2026), When to Register, p. 6 |
| Expected tax owed that requires estimated tax payments (individuals)Also, withholding and credits fall below the smaller of 90% of 2026 tax or 100% of 2025 tax (110% for higher incomes). | $1,000 or more | IRS Pub. 505 (2026), chapter 2, Who Must Pay Estimated Tax |
Section 3: Employment Requirements
| What | Number or deadline | The law |
|---|---|---|
| Report a new or rehired employee to EDD (DE 34)Counted from the start-of-work date, the first day of paid work. | Within 20 calendar days | EDD DE 44 (2026), Report of New Employee(s) (DE 34), p. 56 |
| Report an independent contractor to EDD (DE 542)Whichever comes first in the calendar year. | Within 20 calendar days of paying or contracting for $600 or more | EDD DE 44 (2026), Report of Independent Contractor(s) (DE 542), p. 58 |
| How often most wages must be paidWork 1st-15th: paid 16th-26th. 16th-month end: paid 1st-10th next month. Weekly/biweekly OK if paid within 7 days. | Twice each calendar month | Lab. Code §204(a) |
| Final pay when you fire (discharge) an employeeAll wages earned and unpaid at the time of discharge. | Immediately | Lab. Code §201(a) |
| Final pay when an employee quits without noticeIf the employee gave at least 72 hours' notice, pay is due at the time of quitting. | Within 72 hours | Lab. Code §202(a) |
| Overtime pay ratesAlso 1.5x for the first 8 hours on the 7th day worked in a workweek, and 2x after 8 hours that day. | 1.5x over 8 hours a day or 40 hours a week; 2x over 12 hours a day | Lab. Code §510(a) |
| First meal periodCan be waived by mutual consent if the workday is no more than 6 hours. | At least 30 minutes for a work period over 5 hours | Lab. Code §512(a) |
| Paid sick leave accrual rateAn employer may limit use to 40 hours or 5 days per year. | 1 hour for every 30 hours worked | Lab. Code §246(b)(1) |
| Keep payroll records of daily hours and wages paidKept at a central California location or where employees work. EDD requires at least 4 years. | At least 3 years | Lab. Code §1174(d) |
| Keep payroll records for EDD8 years for payments to service providers if you believe you are not a subject employer. | At least 4 years | EDD DE 44 (2026), Recordkeeping, p. 12 |
| Penalty for willful misclassification as an independent contractor$10,000 to $25,000 per violation for a pattern or practice of violations. | $5,000 to $15,000 per violation | Lab. Code §226.8(b) |
Section 4: Insurance and Liens
| What | Number or deadline | The law |
|---|---|---|
| Preliminary notice deadlineA late notice still works, but only for work done from 20 days before it was served. | 20 days after first furnishing work | Civ. Code §8204(a) |
| Direct contractor: record a mechanics lienOnly after the direct contract is completed. | Earlier of 90 days after completion or 60 days after notice of completion/cessation | Civ. Code §8412 |
| Subcontractor or supplier: record a mechanics lienOnly after the claimant stops providing work. | Earlier of 90 days after completion or 30 days after notice of completion/cessation | Civ. Code §8414(b) |
| File suit to enforce a recorded mechanics lienIf no suit is filed in time, the lien expires and cannot be enforced. | Within 90 days after recording | Civ. Code §8460(a) |
| Owner records a notice of completionOptional for the owner. It must be signed and verified by the owner. | Within 15 days after completion | Civ. Code §8182(a) |
| Give an injured worker a workers' comp claim formFor injuries with lost time beyond the work shift or treatment beyond first aid. | Within 1 working day | Lab. Code §5401(a) |
| CSLB minimum penalty: employing workers without workers' compLater violations can add up to $30,000 total per occurrence. | $10,000 (sole owner) or $20,000 (other entities) per violation | Bus. & Prof. Code §7125.4(a)(1)-(2) |
| State penalty on an uninsured employer when a stop order is servedIf uninsured over 1 week in the calendar year before the finding: instead, the greater of 2x premiums or $1,500 each. | $1,500 per employee | Lab. Code §3722(a) |
| LLC license: liability insurance aggregate limitFor 5 or fewer listed personnel; add $100,000 per extra person, up to $5,000,000. | At least $1,000,000 | Bus. & Prof. Code §7071.19(b)(1) |
| Current no-employee workers' comp exemption (§7125) endsNow: no-employee firms may file one (not C-8, C-20, C-22, C-39, D-49). From 2028: joint ventures only, unless extended. | January 1, 2028 | Bus. & Prof. Code §7125(i); 2028 version §7125(b) |
Section 5: Contract Requirements and Execution
| What | Number or deadline | The law |
|---|---|---|
| Home improvement contract rules apply when the price isContract and changes must be in writing and signed by both parties before work starts. | More than $500 | Bus. & Prof. Code §7159(b) |
| Home improvement down payment limitExample: on a $6,000 job the most is $600; on a $15,000 job it is $1,000. | $1,000 or 10% of the contract price, whichever is less | Bus. & Prof. Code §7159.5(a)(3) |
| Buyer's right to cancel a home improvement contractCounted from receipt of a signed, dated copy with the notice. Not required if negotiated at the contractor's business. | 3 business days | Bus. & Prof. Code §7159(e)(6) |
| Right to cancel when the buyer is a senior citizenSenior citizen means 65 or older (Bus. & Prof. Code §7150). Same place-of-business exception as the 3-day rule. | 5 business days | Bus. & Prof. Code §7159(e)(6) |
| Right to cancel a disaster repair contractRepair of a home damaged in a declared state of emergency or local emergency. | 7 business days | Bus. & Prof. Code §7159(e)(7)(A) |
| Contractor refunds payments after the buyer cancelsCounted from receiving the notice of cancellation. | Within 10 days | Bus. & Prof. Code §7159(e)(6)(B)(i) |
| Service and repair contract maximumThe buyer must have asked for the work; no payment is due before the work is done. | $750 or less | Bus. & Prof. Code §7159.10(a)(1)(A) |
| Pay subcontractors after receiving a progress paymentUnless agreed otherwise in writing. May withhold up to 150% of a disputed amount; late pay costs 2% a month. | Within 7 days | Bus. & Prof. Code §7108.5(a) |
| Owner pays an undisputed progress payment (private work)Unless agreed otherwise in writing. Wrongly withheld payments cost 2% per month. | Within 30 days after a payment demand | Civ. Code §8800(a) |
| Pass retention on to subcontractors (private work)In a good faith dispute, may withhold up to 150% of the estimated disputed amount. | Within 10 days after receiving it | Civ. Code §8814(a) |
| List a subcontractor in a public works bid when its work exceedsStreets, highways and bridges: 1/2 of 1% or $10,000, whichever is greater. | 1/2 of 1% of the prime contractor's total bid | Pub. Contract Code §4104(a)(1) |
Section 6: Public Works
| What | Number or deadline | The law |
|---|---|---|
| Prevailing wages required on public works projectsApplies to contract work, including maintenance; not to work by an agency's own employees. | Over $1,000 | Lab. Code §1771 |
| Penalty for paying less than prevailing wageMinimum $40 unless a good faith mistake was promptly fixed; $80 after penalties in past 3 years; $120 if willful. | Up to $200 per worker per calendar day | Lab. Code §1775(a)(1) |
| File certified payroll records after a written requestLate: $100 per worker per calendar day until the records are filed. | Within 10 days | Lab. Code §1776(d) |
| Minimum apprentice-to-journeyman ratio on public worksPer craft or trade on the public work. | 1 apprentice hour for every 5 journeyman hours | Lab. Code §1777.5(g) |
| Apprentice rules do not apply to contracts ofGeneral contractors, and specialty contractors not bidding through a general or prime contractor. | Less than $30,000 | Lab. Code §1777.5(o) |
| Payment bond required on public works contractsGiven before work starts and approved by the awarding body. The call for bids must say a payment bond is required. | Over $25,000 | Civ. Code §9550(a) |
| DIR registration not required for small public works projectsAbove these amounts, contractors and subcontractors must register with DIR to bid, be listed in a bid, or do the work. | $25,000 or less (construction); $15,000 or less (maintenance) | Lab. Code §1725.5(f) |
Section 7: Safety
| What | Number or deadline | The law |
|---|---|---|
| Report a serious injury, illness or death to Cal/OSHACounted from when you knew or should have known. Up to 24 hours if exigent circumstances. By phone or online (or email). | Immediately, no later than 8 hours | Cal. Code Regs., tit. 8, §342(a) |
| Report a work injury with lost time or treatment beyond first aidTo your workers' comp insurer, or to the Department of Industrial Relations if not insured. | Within 5 days | Lab. Code §6409.1(a) |
| Fall protection required for a possible fall ofWear fall arrest, restraint or positioning gear at unprotected edges, openings or steep roofs. Roofing has its own rule. | More than 7 1/2 feet | Cal. Code Regs., tit. 8, §1670(a) |
| Cave-in protection required in excavationsUnder 5 feet, needed only if a competent person finds signs of a possible cave-in. Not needed in stable rock. | 5 feet deep or more | Cal. Code Regs., tit. 8, §1541.1(a)(1) |
| Notify the regional notification center before diggingExcept in an emergency. The day you notify does not count toward the 2 working days. | At least 2 working days, and no more than 14 calendar days, before | Gov. Code §4216.2(b) |
| Toolbox or tailgate safety meetingsHeld by supervisors with their crews. | At least every 10 working days | Cal. Code Regs., tit. 8, §1509(e) |
| Keep IIPP safety training recordsRecords of scheduled inspections must also be kept at least 1 year. | At least 1 year | Cal. Code Regs., tit. 8, §3203(b)(2) |
| Outdoor temperature when shade must be presentHigh-heat procedures start at 95°F. | Over 80°F | Cal. Code Regs., tit. 8, §3395(d)(1) |
| Asbestos work that requires registration with Cal/OSHAA contractor doing this work must also be certified under Bus. & Prof. Code §7058.5. | 100 square feet or more of asbestos-containing material | Lab. Code §6501.5 |
| Written notice to Cal/OSHA before certain lead workMust reach the nearest Cal/OSHA District Office. Not needed under 100 sq ft or 100 linear ft, or under 0.5% lead. | At least 24 hours before work starts | Cal. Code Regs., tit. 8, §1532.1(p)(1) |