All state contractor’s licenses issued to a company in California require a qualifying individual who has demonstrated his or her knowledge and experience and hold a license.
Qualifiers of companies must exercise direct supervision and control of construction operations. If the qualifier is absent and unqualified individuals perform the work it is illegal. Many retired licensees look for a fee to act as the RMO of corporate licenses but do not have direct involvement in the construction and business activities and thus are not aware of the deficiencies and illegal acts performed by the peole running the day to day operation of the business. Ultimately, the qualifier is who the CSLB will hold liable for the problems.
Being the qualifier can be a huge risk because under the Business and Professions Code any act or omission is cause for disipline against the licensee regardless of his knowledge or participation. Just because your a Responsible Managing Employee does not mean you are not liable.
CCR section 823 defines a “bona fide employee” as an employee who is permanently employed and is actively engged in the operation of the applicant’s contracting business for at least 32 hours or 80% of the total hours per week such business operates, whichever is less. Business and Professions Code Section 7068 provides more direction. If your the qualifier you and your license are on the line so make sure you are supervising the work and it is done properly.