Under the Contractors State License Law, a limited liability company could be licensed through the qualification of a responsible managing employee (RME) and certain other individuals affiliated with the company. Its license would be automatically suspended if the RME disassociated without a replacement within 90 days.
An RME should be a bona fide employee, meaning an employee that the company permanently employed, and should be actively engaged in the work for which the company had a license. To be actively engaged, the employee should work 32 hours weekly or 80% of the total hours per week that the company’s business was in operation, whichever was less.
