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CSLB Law and Business exam video course

The course has 40 lessons, in the order of the seven exam sections. Each lesson teaches the rules for one topic. 6 lessons are free. We are still making the videos, so some lessons are not ready yet.

In your account, each lesson has a practice set on the same topic. A lesson with a video also has chapters, and a transcript where we have one.

Watch the free lessons in your accountGet full access — $59

1. Business Organization and Licensing

  1. How the Law and Business exam works and how to use this course

    Closed book, 4 choices with one BEST answer, 3.5 hours, calculator given, no guessing penalty, no published passing score, 7 section weights, 18 months to pass.

    Free lesson coming soon

  2. Who needs a contractor license, and what unlicensed work costs

    Minor work under $1,000 with no permit, owner-builder limits, license before you bid, up to $5,000 fine and/or 6 months jail, no lawsuit to collect pay.

    Full accessVideo coming soon

  3. Business types and the qualifier (RMO and RME)

    Five business types, who qualifies each, 4 years' experience in the last 10, RME 32 hours or 80%, 3 firms a year, 90 days to replace a qualifier.

    Full accessVideo coming soon

  4. License classes, renewal, inactive status, and reporting changes

    Class A, B (2 unrelated trades), B-2 (3), C; bond needed to renew; 2-year active and 4-year inactive terms; 90-day retroactive renewal; changes in 90 days.

    Full accessVideo coming soon

  5. Advertising, salespersons, and subcontracting limits

    Advertise only your class ($700 to $1,000 fine), license number on ads, 'insured' must name coverage, no 'bonded' for the license bond, one same-class sub.

    Full accessVideo coming soon

2. Business Finances

  1. Cash management: business accounts, petty cash, bank reconciliation

    Deposit all receipts, pay by check, petty cash, monthly reconciliation, Form 8300 for cash over $10,000, bad check: 30 days after demand, no diverting funds.

    Full accessVideo coming soon

  2. Budgets, break-even point, and financing your business

    Fixed and variable costs, break-even = fixed costs / (price - variable cost), loans vs leases, self-employment tax at $400, 2026 estimated tax at $1,000.

    Full accessVideo coming soon

  3. Financial statements, ratios, and cash vs accrual accounting

    Income statement, balance sheet, double entry, cash vs accrual, completed-contract method, current ratio = assets / liabilities, quick ratio excludes inventory.

    Full accessVideo coming soon

  4. Federal payroll taxes in 2026: rates, deposit schedules, and Form 941

    2026: social security 6.2% to $184,500, Medicare 1.45%, FUTA 6.0% on first $7,000, monthly vs semiweekly ($50,000 lookback), $100,000 next-day rule.

    Full accessVideo coming soon

  5. California payroll taxes and sales and use tax for contractors

    2026: UI and ETT on first $7,000 (new employers 3.4%), SDI 1.3% with no wage limit, register with EDD in 15 days, contractors as consumers of materials.

    Full accessVideo coming soon

3. Employment Requirements

  1. Hiring rules: what you may not ask applicants

    No salary history questions, pay scale in job posts (15+ employees), no arrests without conviction, limited credit reports, E-Verify only after an offer.

    Full accessVideo coming soon

  2. Employee or independent contractor? The ABC test6 min video · plays from YouTube

    Employee or independent contractor? The ABC test

    ABC test, licensed subcontractors and employee status, DE 542 for $600 or more, willful misclassification $5,000 to $15,000 per violation.

    Free6 min

  3. Hiring paperwork: I-9, W-4, DE 4, and new-hire reporting

    Form I-9 and W-4, DE 4 for state withholding, report new hires on DE 34 within 20 days, written pay notice at hiring, changes within 7 days.

    Full accessVideo coming soon

  4. Supervising crews: meal periods, paid sick leave, and work expenses

    30-minute meal break after 5 hours, second after 10, sick leave 1 hour per 30 worked, use from day 90, 40-hour yearly use cap, repay necessary expenses.

    Full accessVideo coming soon

  5. Employee protections: retaliation, safety complaints, violence plans

    No retaliation for reporting (up to $10,000 per employee per violation), right to refuse unsafe work, IIPP training, yearly violence training, 5-year logs.

    Full accessVideo coming soon

  6. Paydays, final pay, and the waiting-time penalty

    Pay twice a month, pay windows 16th-26th and 1st-10th, final pay immediately when fired, 72 hours when an employee quits, waiting-time penalty.

    Full accessVideo coming soon

  7. Overtime, paycheck deductions, and wage rules

    1.5x over 8 hours or 40, 2x over 12, 7th-day rules, what may and may not be deducted from a paycheck, vacation pay is earned wages.

    Full accessVideo coming soon

  8. Pay stubs and wage statements: what they must show

    What a wage statement must show, last 4 SSN digits, copies in 21 days, penalties for a bad stub, keep 3 years.

    Full accessVideo coming soon

  9. Personnel files and how long to keep payroll records

    Personnel file requests in 30 days, payroll records 3 years (Labor Code) vs 4 years (EDD and IRS), layoff notice and DE 2320.

    Full accessVideo coming soon

4. Insurance and Liens

  1. Workers' comp: who must carry it and what CSLB requires6 min video · plays from YouTube

    Workers' comp: who must carry it and what CSLB requires

    Through 2027: every employer must insure; exemption only with no employees; C-8, C-20, C-22, C-39, D-49 always need it; RME counts as an employee; 2028 change.

    Free6 min

  2. Workers' comp claims, notices, and penalties for going uninsured

    Claim form within 1 working day, presumed covered after 90 days, no premium deductions from pay, stop orders, $1,500 per employee, CSLB $10,000/$20,000 fines.

    Full accessVideo coming soon

  3. Contractor bonds, LLC insurance, and claims against a bond

    $25,000 contractor's bond, LLC $100,000 bond and $1M+ liability insurance, wage claims capped at $4,000, sue within 2 years after the license period ends.

    Full accessVideo coming soon

  4. Mechanics liens: preliminary notice and recording deadlines6 min video · plays from YouTube

    Mechanics liens: preliminary notice and recording deadlines

    20-day preliminary notice; record within 90 days of completion (60 days direct contractor, 30 days others after a notice of completion); sue within 90 days.

    Free6 min

  5. Stop payment notices, lien waivers, and lien release bonds

    Statutory waiver and release forms, conditional vs unconditional, stop payment notices (bonded paid first), 125% release bonds, lien priority.

    Full accessVideo coming soon

5. Contract Requirements and Execution

  1. Home improvement contracts: down payment, cancel rights, and notices6 min video · plays from YouTube

    Home improvement contracts: down payment, cancel rights, and notices

    Over $500 needs a written contract, down payment $1,000 or 10% (whichever is less), 3-day right to cancel (5 for seniors, 7 for disasters), refund in 10 days.

    Free6 min

  2. Change orders, contract contents, and service and repair contracts

    Required contract items, change orders in writing and signed before work, service and repair up to $750, one service charge, no payment before completion.

    Full accessVideo coming soon

  3. Special contracts: loans, new homes, pools, and indemnity clauses

    Loan-contingent contracts, single-family home contracts, swimming pool plans, no security interest on jobs of $5,000 or less, limits on indemnity clauses.

    Full accessVideo coming soon

  4. Bidding public work: licenses, bid security, listing subcontractors

    License and DIR registration, 10% bid security (city and county), list subs over 1/2 of 1% of the bid, consent to substitute, mistake notice in 5 working days.

    Full accessVideo coming soon

  5. Private jobs: paying subcontractors, progress payments, and retention

    Pay subs within 7 days, withhold no more than 150% of a dispute, 2% a month penalty, owner pays in 30 days, retention in 45 days, subs' share in 10 days.

    Full accessVideo coming soon

  6. Payments and retention on public jobs

    Retention capped at 5%, released within 60 days of completion, subs paid their share in 7 days, interest after 30 days, securities in place of retention.

    Full accessVideo coming soon

  7. Public work cost control: site conditions, delays, acts of God, claims

    Public contracts: act of God repairs capped at 5%, changed conditions in trenches over 4 feet, delay and liquidated damages, claim answers in 45 days.

    Full accessVideo coming soon

  8. Running the job: supervision, records, completion, and small claims

    Qualifier supervision, job records 5 years, discipline for abandonment, notice of completion in 15 days, small claims $12,500 (person) or $6,250 (firm).

    Full accessVideo coming soon

6. Public Works

  1. Prevailing wage, certified payroll, and apprentices

    Prevailing wage over $1,000, up to $200 per worker per day, certified payroll in 10 days, DIR registration, 1 apprentice hour per 5, contracts under $30,000.

    Full accessVideo coming soon

  2. Public works bonds and insurance requirements

    Payment bond over $25,000 for 100% of the contract, performance bonds, workers' comp certificate before work, act of God insurance, wrap-up policies.

    Full accessVideo coming soon

7. Safety

  1. Safety programs: the IIPP, toolbox talks, and safety training

    Written IIPP (Lab. Code §6401.7), periodic inspections, train new hires and new assignments, toolbox talks every 10 working days, keep training records 1 year.

    Full accessVideo coming soon

  2. Reporting work injuries: what Cal/OSHA counts as serious6 min video · plays from YouTube

    Reporting work injuries: what Cal/OSHA counts as serious

    Report serious injury, illness or death immediately (no later than 8 hours), other injuries within 5 days, what counts as serious, $5,000 minimum penalty.

    Free6 min

  3. Fall protection, guardrails, ladders, and scaffolds

    Fall protection over 7 1/2 feet, free fall limit of 6 feet, top rails 42 to 45 inches, covers for openings, scaffolds built for 4 times the load.

    Full accessVideo coming soon

  4. Trenches, excavations, heat illness, and power lines

    Cave-in protection at 5 feet, a way out of trenches 4 feet deep, call 2 working days before digging (ticket lasts 28 days), shade over 80°F, power lines live.

    Full accessVideo coming soon

  5. Asbestos, lead, and hazardous materials: safety data sheets

    Asbestos registration at 100 square feet, C-22 and certification, 24-hour notice for lead trigger tasks, safety data sheets and labels for every chemical.

    Full accessVideo coming soon

  6. Unknown hazards: suspect materials, confined spaces, buried surprises

    Presumed asbestos material, oxygen below 19.5%, underground tank certification, hazards found while digging: PACM, tanks, utilities, human remains.

    Full accessVideo coming soon