In case you missed it, a revision in the definition of a “Responsible Managing Officer” and “Responsible Managing Employee” has made its way into our businesses via the passage of AB 830 that took effect the first of this year.

Previously, the language defined a “responsible managing employee” as only an individual who is a “bona fide employee” of the contractor and is simply “actively engaged in the classification of work for which that responsible managing employee is the qualifying person on behalf of the [contractor].” The definition of what constitutes a “bona fide employee” or “actively engaged” was not outlined in the previous statute.

Now, under AB 830, contractors face additional requirements via amendments to California Business & Professions Code §§ 7068 and 7068.1 as follows:

  • Defining the “supervision and control” of construction projects by the RMO/RME
  • Requiring RMEs to be “bona fide employees” and “actively engaged” in construction operations, and
  • Specifying certain criteria of what the RMO/RME must fulfill and submit to the CSLB to qualify for the license.

The statute states that the CSLB “…shall require an applicant to show the degree of knowledge and experience in the classification applied for, and the general knowledge of the building, safety, health, and lien laws of the state and of the administrative principles of the contracting business that the board deems necessary for the safety and protection of the public. 

For purposes of this legislation, “a responsible managing employee” means an individual who is a bona fide employee of the applicant and is actively engaged in the classification of work for which that responsible managing employee is the qualifying person on behalf of the applicant.

Ultimately, “Bona fide employee of the applicant” means an employee who is permanently employed by the applicant. While “Actively engaged” means working 32 hours per week, or 80 percent of the total hours per week that the applicant’s business is in operation, whichever is less. 

Failure to comply may result in the automatic suspension of the licensee by operation of law.

By Dave Sorem, P.E. ECA Government Affairs Chairman email: [email protected]