The qualifier
RME vs RMO: who can qualify a California contractor license
In California the license belongs to the business, not the person. But every license needs a qualifying individual: someone whose experience and exam results stand behind it, and who then supervises and controls the work (B&P §7068). When that person isn't the owner, they're an RMO or an RME — and the difference changes the hours, the bonds and the liability.
32 hours
The RME's weekly minimum, or 80% of operating hours if less.
$25,000
Extra bond when an RME qualifies.
90 days
To notify and replace if the qualifier leaves.
Who can be the qualifier, by business type
| Business type | Can qualify |
|---|---|
| Sole owner | The owner, or an RME |
| Partnership | A general partner, or an RME |
| Corporation | An RMO, or an RME |
| LLC | An RMO, a responsible managing member or manager, or an RME |
Notice the RME appears in every row: any business can qualify through an employee. The RMO only exists in corporations and LLCs, because it has to be an officer.
RMO vs RME, side by side
| RMO (responsible managing officer) | RME (responsible managing employee) | |
|---|---|---|
| Who it is | An officer of the corporation or LLC | A permanent employee, not an owner |
| Minimum hours | No hour count like the RME's, but must supervise and control the work | 32 a week or 80% of operating hours, whichever is less |
| Extra $25,000 bond | No, if they own 10% or more | Yes, always |
| Workers' comp exemption | Only if the business has no employees | No — the RME is an employee |
| Liable for violations | Yes | Yes |
The RME hours rule
An RME must be a bona fide employee, permanently employed, and actively engaged in the work at least 32 hours a week or 80% of the business's total weekly operating hours, whichever is less (B&P §7068(c)).
Example: a business open 36 hours a week
- 1.80% of 36 hours = 0.80 × 36 = 28.8 hours.
- 2.Compare 28.8 with 32. The law uses whichever is less.
- 3.The RME must work at least 28.8 hours a week.
When the qualifier leaves
The day an RMO or RME leaves the business, two 90-day clocks start running (B&P §7068.2):
- Notify CSLB in writing within 90 days.Either the business or the qualifier can send it.
- Replace them within 90 days.By filing an application with the fee ($230 as of 2026).
- Otherwise the license suspends itself.At the end of the 90 days — or that classification is removed.
The 90 days run from the day the qualifier left, not the day CSLB found out. CSLB may accept one 90-day extension if the leaving date is disputed, the qualifier died, or processing was delayed — and for a dispute or a death, the total never exceeds 180 days.
An RME means a second $25,000 bond, and an LLC adds another $100,000. See every bond.
FAQ
What does the qualifier need?
To be at least 18, have a Social Security number or an ITIN, and at least four years of experience in the last ten as a journeyman, foreman, supervisor or contractor in the classification applied for. They are also the one who sits the exams.
Can I be an RME and work somewhere else?
Yes, as long as you meet the hours: at least 32 a week or 80% of the business's operating hours, whichever is less. If the business runs 36 hours a week, the minimum is 28.8 hours, because that's less than 32.
Can I qualify more than one license?
Only if the firms share at least 20% common ownership, one is a subsidiary or joint venture of the other, or the majority of partners or officers are the same. Even then, never more than three firms in a year. Breaking the rule is a misdemeanor (B&P §7068.1).
Is the qualifier responsible for what the company does?
Yes. They can be disciplined for the business's violations even without knowing about them or taking part (B&P §7122.5). That's why lending your license to a company you don't supervise is a bad idea.
What does it cost to replace a qualifier?
The replacement application is $230 as of 2026, and it must be filed within 90 days of the qualifier leaving.
Can I just pay someone to lend me their license?
Not legally. An RME must be a real employee who meets the hour minimum and supervises and controls the work. A paper qualifier puts the license at risk and exposes the qualifier to discipline for everything the company does.
The qualifier is the one who sits the exam
If you're going to be the RMO or the RME, the Law and Business exam is yours to pass. See where you stand with 20 free questions, in English or Spanish.
Official sources: CSLB: the qualifier · B&P §7068 · B&P §7068.1 · B&P §7068.2 · B&P §7071.9 · B&P §7122.5