If you have a California contractor’s license, you may have been offered good sums of money to rent it out. A company or contractor who does not hold one may offer to pay you to be a legal figurehead. If you say yes, they can bid for contracts under your number.
Under California law, any building job over $500 requires someone who holds a professional license act as the Responsible Managing Officer (RMO) or Responsible Managing Employee (RME). If you rent your license to a project you have no real involvement with, you effectively agree to deceive members of the public. The client is only contracting the company because they believe someone qualified is in charge. You need to play a significant role in the day to day operation of any contract secured under your license. Imagine going to see a doctor, only to discover that the person sitting in the chair is not a qualified doctor at all; they merely borrowed someone else’s title and white coat.
When a customer files a complaint about work done, the CSLB will look at who is the license holder. If it is you, then you are in line for problems. The CSLB intends to crack down on companies renting qualifiers and has the authority to punish both the company doing the hiring and the person renting out their license. Being caught could lead to a jail term and the loss of your license.
If you find a company is using your license without your permission. You will need legal help to explain the situation to the CSLB and defend your California contractor license.
