California Contractors License Study Guide: CSLB Law & Trade

This free California contractors license study guide includes 38 Contractors State License Board (CSLB) Law and Business questions, nine construction-math problems, official exam maps, and a 6-week plan. The practice is original and unofficial—not a full-length exam or a complete technical course for every classification.

CALB-LB-01 · Minor-work exemption

A worker with no contractor license is asked to do a casual, minor closet-shelving installation. The whole project totals $900, including labor, materials and all other items. The job needs no building permit, isn't part of a larger project, he'll work alone, and he doesn't present himself as a contractor. Does California's minor-work exemption in §7048 cover the job?

A. No. Any job over $500 needs a license.
B. Yes. It meets the exemption's price, no-permit, and other conditions.
C. Only if the homeowner signs a license waiver.
D. No. All home improvement work needs a license.

Reveal answer and explanation

Answer and explanation: B. Section 7048 exempts casual, minor work when the whole project is under $1,000 (labor, materials and everything else), needs no building permit, isn't part of a larger operation, and the person doesn't hire help or hold themselves out as a contractor. All of those facts are in the stem. A uses $500 instead of the current under-$1,000 price condition. C: no homeowner waiver replaces a license. D ignores the exemption entirely.

Source: Bus. & Prof. Code §7048.

More Law and Business practice questions

Business Organization and Licensing

CALB-LB-02 · Minor-work exemption: permits

An unlicensed person bids $600 to replace a water heater. The city requires a building permit for the work. Does the minor-work exemption in §7048 apply?

A. Yes, because the job is under $1,000.
B. It is unavailable only if helpers are hired.
C. It is unavailable only if the job exceeds $750.
D. No. The exemption does not apply because the work needs a building permit.

Reveal answer and explanation

Answer and explanation: D. The exemption covers only work that doesn't require a building permit, whatever the price. A looks at price alone. C invents a $750 test ($750 belongs to a different rule about service-and-repair contracts). B names a real disqualifier, hiring help, but misses the one in these facts.

Source: Bus. & Prof. Code §7048; Bus. & Prof. Code §7159.10.

CALB-LB-03 · Minor-work exemption: splitting a job

An unlicensed worker writes a $2,700 trim job for one homeowner as three separate $900 contracts. Does the §7048 exemption apply?

A. Yes. Each contract is under $1,000.
B. No. Splitting one operation into contracts under $1,000 doesn't qualify.
C. Yes, if each contract is signed on a different day.
D. Yes, as long as the worker doesn't pull a permit.

Reveal answer and explanation

Answer and explanation: B. The $1,000 test uses the aggregate price for one project, and §7048(b) says the exemption doesn't apply when an operation is divided into contracts under $1,000. A and C describe exactly that kind of split. D confuses the rules: skipping a required permit doesn't create an exemption, and the aggregate price here is still $2,700.

Source: Bus. & Prof. Code §7048.

CALB-LB-04 · Qualifier leaves the company

A corporation's qualifying individual quits. Within how many days of disassociation must CSLB receive the written disassociation notice?

A. 10 days
B. 30 days
C. 90 days
D. 180 days

Reveal answer and explanation

Answer and explanation: C. CSLB must receive the notice within 90 days of the disassociation date (B&P §7068.2). Missing that deadline results in automatic suspension of the license or removal of the affected classification, effective when CSLB receives written notification. The company also has 90 days to replace the qualifier; it can request one 90-day extension, but CSLB approval is not automatic. 10 and 30 days are too short. 180 days is not the deadline for the notice.

Source: CSLB: Change in Personnel.

CALB-LB-05 · License number on vehicles

A C-10 electrical contractor is lettering a commercially registered work truck. What's the minimum requirement?

A. Business name and license number, clearly visible in at least 72-point type or letters at least 3/4 inch high and wide
B. Name, address and license number on each side, in letters at least 1 1/2 inches high
C. License number only, any size
D. No lettering is required

Reveal answer and explanation

Answer and explanation: A. Most classifications must show the business name and license number in 72-point type or letters at least 3/4 inch high and wide. B is the stricter rule for C-36 plumbing, C-45 sign and C-57 well drilling contractors only. C and D understate the rule.

Source: CSLB Advertising Guidelines.

CALB-LB-06 · Contractor bond

For an active license, what is the standard contractor's bond face amount under §7071.6, excluding additional or increased bond requirements?

A. $10,000
B. $15,000
C. $25,000
D. $50,000

Reveal answer and explanation

Answer and explanation: C. CSLB lists a $25,000 contractor's bond as an issuance requirement. A bond of qualifying individual, when one is required, is also $25,000. The $25,000 is the bond's face amount, not a quoted premium. An inactive license does not require this bond while inactive. The other answers are not the standard contractor's bond amount; this question excludes special increased or additional bonds.

Source: CSLB: Issuing My License; 2026 California Contractors License Law & Reference Book.

Business Finances

CALB-LB-07 · Gross margin pricing

A job's total estimated cost is $80,000. The owner wants a 20% gross margin, meaning profit is 20% of the selling price. What should the price be?

A. $96,000
B. $84,000
C. $100,000
D. $120,000

Reveal answer and explanation

Answer and explanation: C. Price = cost ÷ (1 − margin) = $80,000 ÷ 0.80 = $100,000. Profit is $20,000, which is 20% of $100,000. A adds a 20% markup on cost, which only works out to about a 16.7% margin ($16,000 ÷ $96,000). B adds just 5%. D adds a 50% markup.

CALB-LB-08 · Straight-line depreciation

A $60,000 truck has an estimated $12,000 salvage value and a 6-year useful life. What's the full-year straight-line book depreciation, using (cost minus salvage value) divided by useful life? This is not a tax-depreciation question.

A. $10,000
B. $8,000
C. $12,000
D. $6,000

Reveal answer and explanation

Answer and explanation: B. (Cost − salvage) ÷ life = ($60,000 − $12,000) ÷ 6 = $8,000 a year. A forgets to subtract the salvage value. C is the salvage value itself. D ignores salvage and divides by 10 years instead of 6 ($60,000 ÷ 10).

CALB-LB-09 · Current ratio

A contractor has $150,000 in current assets and $100,000 in current liabilities. What's the current ratio?

A. 0.67
B. $50,000
C. 2.5
D. 1.5

Reveal answer and explanation

Answer and explanation: D. Current ratio = current assets ÷ current liabilities = 150,000 ÷ 100,000 = 1.5. A turns the fraction upside down. C adds the two numbers and divides by 100,000. B is working capital (assets minus liabilities), which is a dollar amount, not a ratio.

CALB-LB-10 · Cash timing

A contractor starts the week with $9,000 in the bank and receives $4,000 in cleared customer payments during the week. It must pay $15,000 in bills that same week. A customer's $6,000 invoice won't be paid until next month. With no other money coming in, what's the cash position after the bills are paid?

A. A $2,000 shortfall
B. $4,000 left
C. $6,000 left
D. $13,000 left

Reveal answer and explanation

Answer and explanation: A. Cash this week = $9,000 + $4,000 − $15,000 = −$2,000. B counts the unpaid $6,000 invoice as if it were cash this week. C just reports the invoice amount. D stops before paying the bills. This is about cash timing, not profit: an invoice you've sent isn't money you can spend yet.

CALB-LB-11 · Payroll tax deposit schedule

A contractor filing Form 941 had $42,000 of reported employment-tax liability in its applicable lookback period. It is required to make deposits, and no $100,000 next-day trigger applies. Which deposit schedule does the lookback amount establish?

A. Semiweekly
B. Monthly
C. Once a year, with the tax return
D. Next business day, always

Reveal answer and explanation

Answer and explanation: B. IRS Publication 15: $50,000 or less during the Form 941 lookback period means the monthly schedule; more than $50,000 means semiweekly. A applies the over-$50,000 rule. C isn't a deposit schedule for this situation. D is an override: if $100,000 or more accumulates on any day within one monthly or semiweekly deposit period, the next-business-day rule applies. That trigger is excluded here.

Source: IRS Publication 15 (2026).

Employment Requirements

CALB-LB-12 · New-hire reporting

A new laborer first works for pay on a Monday. The employer will report the hire to California's Employment Development Department (EDD) on paper Form DE 34. By when must it report the hire?

A. Within 5 calendar days
B. Within 10 calendar days
C. Within 20 calendar days
D. Within 30 calendar days

Reveal answer and explanation

Answer and explanation: C. California employers report a new hire within 20 calendar days of the first day the employee performs services for wages. Form DE 34 is the paper method used here. EDD also accepts other reporting methods and specifies a separate twice-monthly arrangement for electronic reports. The other deadlines aren't the paper-reporting rule in this question.

Source: EDD: New Hire Reporting.

CALB-LB-13 · Rehire reporting

An employee laid off for 45 days comes back to the same employer. Under EDD's new-hire reporting rules, must she be reported as a rehire?

A. No. Rehire reporting applies after a separation of at least 60 consecutive days.
B. Yes. Every return to work must be reported.
C. Only if her pay rate went up.
D. Only if she was gone more than 30 days.

Reveal answer and explanation

Answer and explanation: A. EDD requires reporting a rehire only when the worker was separated for at least 60 consecutive days, and 45 days is short of that. B overstates the rule. C and D make up conditions that aren't in it.

Source: EDD: New Hire Reporting.

CALB-LB-14 · Form I-9 and employment eligibility

A new employee has a valid Social Security number. The employer proposes treating that fact alone as proof that the employee is authorized to work and skipping Form I-9. Which response is correct?

A. A valid Social Security number alone establishes authorization to work.
B. A valid Social Security number alone does not establish work authorization; the employer must complete the required employment-eligibility verification, including Form I-9.
C. The employee’s Form W-4 replaces Form I-9.
D. Construction employees are exempt from employment-eligibility verification.

Reveal answer and explanation

Answer and explanation: B. IRS Publication 15 explains that a person may have a valid Social Security number but not be authorized to work, and that verifying a new employee's eligibility includes completing Form I-9. A treats an identification number as work authorization. C confuses income-tax withholding with employment-eligibility verification. D invents a construction exemption. This question tests the purpose of verification, not Form I-9 completion deadlines.

Source: IRS Publication 15 (2026): Hiring New Employees; IRS: About Form W-4.

CALB-LB-15 · California daily overtime

A nonexempt carpenter has a regular rate of $30 an hour and works 10 hours on a Tuesday. It isn't the seventh day worked in a row, weekly hours stay under 40, and no alternative workweek or other exception applies. What's the gross pay for that day?

A. $300
B. $360
C. $330
D. $450

Reveal answer and explanation

Answer and explanation: C. California pays 1.5 times the regular rate for hours over 8, up to 12, in a workday. So 8 × $30 = $240, plus 2 × $45 = $90, for a total of $330. A leaves out overtime. B pays double time for the 2 extra hours, but double time in this stated daily-hours scenario starts only after 12 hours. D pays all 10 hours at time-and-a-half.

Source: DIR Labor Commissioner: Overtime FAQ.

CALB-LB-16 · Large payroll tax liability

A contractor filing Form 941 normally deposits monthly or semiweekly. On one day within a single deposit period, its accumulated employment-tax liability for that period reaches $100,000. When must that amount be deposited?

A. By the next business day
B. By the 15th of the next month
C. With the quarterly return
D. Within 3 business days

Reveal answer and explanation

Answer and explanation: A. Once $100,000 or more accumulates on any day within one deposit period, the taxes must be deposited by the next business day, whether the employer normally deposits monthly or semiweekly. B is the monthly-schedule deadline. C and D aren't the rule for this situation.

Source: IRS Publication 15 (2026).

CALB-LB-17 · Form W-4

A new employee needs to give the employer the information used to withhold federal income tax from paychecks. Which form does that?

A. The customer's signed estimate
B. The project's building permit
C. A supplier's materials invoice
D. IRS Form W-4

Reveal answer and explanation

Answer and explanation: D. The IRS says employees complete Form W-4 so the employer can withhold the correct federal income tax. A is about a customer, B is about the project, and C is about a supplier. None of them tells the employer how to withhold from the worker's pay.

Source: IRS: About Form W-4.

Insurance and Liens

CALB-LB-18 · Workers' comp claim form

An employee reports a work injury on Monday morning that requires medical treatment beyond first aid. By when must the employer give or mail him a workers' compensation claim form?

A. Within 1 working day
B. Within 5 days
C. Within 14 days
D. Only if he asks for one in writing

Reveal answer and explanation

Answer and explanation: A. Labor Code §5401 requires the employer to give or mail the claim form within one working day after notice or knowledge of a qualifying injury. This injury is beyond first aid. Once the claim form is filed, §5402(c) requires authorization within one working day for treatment consistent with the applicable treatment guidelines while the claim is accepted or rejected; the employer's liability for that pending-decision treatment is limited to $10,000. This is not an automatic $10,000 payment to the employee. B and C are too slow. D puts the burden on the worker, but the duty belongs to the employer.

Source: Labor Code §5401; Labor Code §5402.

CALB-LB-19 · Preliminary notice

A drywall subcontractor is required to give a preliminary notice on a private home project. To cover its work from the first day of furnishing, by when should it give the notice?

A. Only after a payment is late
B. Only if the owner records a notice of completion
C. Within 90 days after the job is finished
D. No later than 20 days after it starts work or delivers materials

Reveal answer and explanation

Answer and explanation: D. Civil Code §8204 permits notice before furnishing or no later than 20 days after first furnishing to cover work from the start. A later notice can cover work furnished in the preceding 20 days and work furnished afterward; it does not necessarily lose all protection. A waits for a payment dispute instead of meeting this timing rule. C confuses the separate lien-recording period with the preliminary notice. B mixes up a later lien deadline with the notice. Timely notice is one requirement, not proof that every lien requirement has been met.

Source: Civil Code §8204.

CALB-LB-20 · Lien deadline after a notice of completion

On the actual completion date of a private project, the owner records a valid notice of completion and satisfies the applicable notice-service requirements. The direct contractor has completed its contract, and no earlier notice of cessation affects the deadline. How long after that recording does the direct contractor have to record its mechanics lien?

A. 20 days
B. 30 days
C. 60 days
D. 90 days

Reveal answer and explanation

Answer and explanation: C. Civil Code §8412 gives a direct contractor the earlier of 90 days after completion or 60 days after recording a valid notice of completion or cessation. Because completion and recording occur on the same day here, the 60-day limit controls. Section 8414 uses 30 days after the notice for other claimants, again subject to the earlier 90-day completion limit. A confuses the preliminary-notice period with recording a lien. B is the other-claimant notice deadline. D ignores the valid notice that shortens the period here.

Source: Civil Code §8412; Civil Code §8414.

CALB-LB-21 · Lien foreclosure deadline

A subcontractor recorded a mechanics lien. No qualifying extension of credit was recorded under Civil Code §8460(b). How long does it have to commence an action to foreclose that lien?

A. 90 days after recording
B. 30 days after recording
C. One year after completion
D. There's no deadline

Reveal answer and explanation

Answer and explanation: A. Civil Code §8460(a) requires the enforcement action within 90 days after recording the lien. The recorded-credit-extension exception in subsection (b) is expressly excluded here. B is too short, C is not the ordinary deadline in these facts, and D is wrong because the lien expires if the required enforcement action is not timely commenced.

Source: Civil Code §8460.

CALB-LB-22 · Choosing a lien release

A subcontractor hasn't been paid yet for this month's progress billing. The parties want the release to take effect only once that payment actually arrives. The job isn't at final payment. Which form fits?

A. Unconditional Waiver and Release Upon Final Payment
B. Conditional Waiver and Release Upon Final Payment
C. Conditional Waiver and Release Upon Progress Payment
D. Unconditional Waiver and Release Upon Progress Payment

Reveal answer and explanation

Answer and explanation: C. Two questions pick the form: progress or final, and conditional or unconditional. This is a progress payment, and the release depends on actually getting paid, so it's conditional. A and B are final-payment forms. D is unconditional and says payment was already received, which isn't true yet.

Source: CSLB: Conditional and Unconditional Waiver and Release Forms.

Contract Requirements and Execution

CALB-LB-23 · Down payment cap: large contract

A licensed contractor enters a $30,000 kitchen-remodel home improvement contract subject to §7159.5. None of the qualifying bond or registrar-approved joint-control exceptions in subsection (a)(8) applies. What's the maximum down payment?

A. $3,000
B. $1,500
C. $1,000
D. No legal limit

Reveal answer and explanation

Answer and explanation: C. The down payment can't be more than $1,000 or 10% of the contract price, whichever is less. 10% would be $3,000, so the cap is $1,000. A uses the percentage and skips the "whichever is less" part. B matches neither limit. D ignores the rule. The bond or joint-control exception in §7159.5(a)(8) doesn't apply under these facts.

Source: Bus. & Prof. Code §7159.5.

CALB-LB-24 · Down payment cap: small contract

A licensed contractor enters a $6,000 fence-and-gate home improvement contract subject to §7159.5. None of the qualifying bond or registrar-approved joint-control exceptions in subsection (a)(8) applies. What's the maximum down payment?

A. $600
B. $1,000
C. $300
D. $1,200

Reveal answer and explanation

Answer and explanation: A. 10% of $6,000 is $600, which is less than $1,000, so $600 is the cap. B picks the larger of the two limits. C uses 5%. D uses 20%.

Source: Bus. & Prof. Code §7159.5.

CALB-LB-25 · Payments ahead of the work

A contractor asks for 50% of a home improvement price under a contract subject to §7159.5 before any work starts or materials arrive, "to lock in the schedule." There's no bond or joint-control exception. Is that allowed?

A. Yes, if it's written into the contract.
B. No. Apart from the capped down payment, payments can't exceed the value of work done or materials delivered.
C. Yes, if the homeowner is financing the job.
D. Yes, for jobs over $25,000.

Reveal answer and explanation

Answer and explanation: B. Section 7159.5(a)(5): except for the down payment, the contractor may neither ask for nor accept more than the value of work performed or material delivered. A: putting it in the contract doesn't make it legal. C and D invent exceptions.

Source: Bus. & Prof. Code §7159.5.

CALB-LB-26 · Right to cancel

A home improvement contract negotiated at the buyer's home is subject to the ordinary cancellation notice in §7159(e)(6). The buyer is not a senior citizen, and no disaster rule, emergency waiver or service-and-repair exception applies. After receiving a signed, dated copy that includes the required notice, what is the cancellation period?

A. 24 hours
B. 3 business days
C. 7 business days
D. 30 calendar days

Reveal answer and explanation

Answer and explanation: B. The required notice gives until midnight of the third business day after the buyer receives the signed, dated contract copy that includes the cancellation notice. Section 7159 gives five business days for a senior-citizen buyer and provides a seven-business-day notice for certain declared-disaster repairs. Neither special period applies here. A and D aren't the statutory periods. The receipt and notice conditions matter: signing alone is not the complete clock rule.

Source: Bus. & Prof. Code §7159.

CALB-LB-27 · Service and repair contracts

A homeowner calls a licensed plumber about a leaking faucet. The total job is $400; it is reasonably necessary to fix the problem that prompted the call, no additional goods or services are sold, and payment is neither due nor accepted until the work is done. Which contract type fits?

A. A service and repair contract
B. A full home improvement contract with a 3-day cancellation notice
C. No written agreement is ever needed
D. A public works contract

Reveal answer and explanation

Answer and explanation: A. Section 7159.10 defines a service and repair contract by four conditions: a price of $750 or less; the buyer initiates contact; the work is reasonably necessary for the problem prompting the contact, without additional goods or services; and no payment is due or accepted before completion. Every condition is met here. A compliant service and repair contract is excluded from §7159's ordinary home improvement contract requirements, which rules out B. C ignores the writing requirement: the buyer must receive a signed, dated copy before work begins. The statutory cancellation right continues until the buyer receives that copy and the work begins. D is about public works, not this private repair.

Source: Bus. & Prof. Code §7159.10; Bus. & Prof. Code §7159.

CALB-LB-28 · Unit-price bid

A flooring job covers 1,200 square feet. Labor is $4.50 per square foot and materials are $2.25 per square foot. Add a 15% markup on that cost. What's the bid?

A. $8,100
B. $9,315
C. $8,910
D. $6,210

Reveal answer and explanation

Answer and explanation: B. ($4.50 + $2.25) × 1,200 = $8,100 in cost, and $8,100 × 1.15 = $9,315. A leaves out the markup. C uses 10% instead of 15%. D marks up labor only ($5,400 × 1.15) and forgets the materials.

CALB-LB-29 · Where the license number goes

Where must a licensed contractor's license number appear?

A. Only on the wall certificate
B. Only on company vehicles
C. Only on contracts over $1,000
D. On contracts, subcontracts, calls for bid and all advertising

Reveal answer and explanation

Answer and explanation: D. CSLB requires the license number on all construction contracts, subcontracts, calls for bid and all forms of advertising. Vehicles have their own separate lettering rules. A, B and C each name just one piece of the requirement.

Source: CSLB Advertising Guidelines; 2026 California Contractors License Law & Reference Book.

CALB-LB-30 · Change orders

Partway through a home improvement job governed by §7159, the owner asks for extra work that isn't in the signed contract. What satisfies the written-change requirement before that work begins?

A. Doing the work and adding it to the final invoice
B. A verbal agreement on the new price
C. Writing up the change after the work is finished
D. A written change order signed by both parties before the extra work starts, showing the scope, the price change, and the effect on the progress-payment schedule

Reveal answer and explanation

Answer and explanation: D. Under §7159, a change must be in writing and signed by the parties before any of the changed work begins. The change-order provision requires the scope, the amount added or subtracted, and the effect on the progress-payment schedule. Record any agreed completion-date change as well; that is not a substitute for the required payment information. A and C document the change too late. B isn't in writing at all.

Source: Bus. & Prof. Code §7159.

Public Works

CALB-LB-31 · Public works registration

A licensed contractor wants to bid on a $2 million city public works project. What must it do before bidding?

A. Nothing beyond holding a CSLB license
B. Get a federal contractor ID
C. Register with the Department of Industrial Relations (DIR) as a public works contractor
D. Join a union

Reveal answer and explanation

Answer and explanation: C. DIR registration is a separate requirement for bidding or working on this covered $2 million public works project. A leaves out that separate step. B and D aren't state registration requirements.

Source: DIR: Public Works Contractor Registration; DIR: Public Works Contractors.

CALB-LB-32 · Prevailing wage source

On a California public works project subject to California state prevailing wage law, who sets the wage rates the contractor must pay?

A. The city awarding the contract
B. CSLB
C. The Director of the Department of Industrial Relations
D. The prime contractor

Reveal answer and explanation

Answer and explanation: C. DIR says workers on public works must be paid the prevailing wage set by the DIR Director, based on the type of work and the project's location. The awarding agency, CSLB and the prime contractor don't set the rates.

Source: DIR: Prevailing Wage.

CALB-LB-33 · Subcontractor payroll on public works

A subcontractor with employees on a California public works project subject to the applicable certified-payroll submission requirements wants to skip keeping payroll records because the prime contractor holds a CSLB license. What's the best response?

A. The prime's license covers the subcontractor's payroll duties.
B. A company profit-and-loss statement is enough.
C. The subcontractor must keep and submit its own certified payroll records.
D. Payroll records are optional on fixed-price subcontracts.

Reveal answer and explanation

Answer and explanation: C. DIR counts subcontractors as public works contractors. That means they have their own duties, including keeping and submitting certified payroll records. A mixes up licensing with payroll compliance. B is a company financial report, not a worker-by-worker payroll record. D invents an exception for fixed-price work.

Source: DIR: Public Works Contractors.

Safety

CALB-LB-34 · Reporting a serious injury

A worker suffers an injury reportable under Cal/OSHA’s serious-injury rule on a jobsite at 9 a.m., and the employer knows right away. With no exigent (emergency) circumstances, when is the report to Cal/OSHA due?

A. As soon as practically possible, and no later than 5 p.m. the same day
B. Within 24 hours
C. Within 3 days
D. With the annual injury log

Reveal answer and explanation

Answer and explanation: A. Title 8 §342 requires reporting "immediately": as soon as practically possible and no later than 8 hours after the employer knows. 9 a.m. plus 8 hours is 5 p.m. The 24 hours in B is allowed only when the employer can show exigent circumstances. C and D are far too late.

Source: Cal. Code Regs., tit. 8, §342.

CALB-LB-35 · Tailgate safety meetings

How often must construction supervisors hold toolbox or tailgate safety meetings with their crews?

A. Every day
B. Only after an accident
C. Once a month
D. At least every 10 working days

Reveal answer and explanation

Answer and explanation: D. Title 8 §1509(e) calls for toolbox or tailgate meetings, or equivalent, at least every 10 working days. A goes beyond what's required. C isn't often enough. B is reactive, but the rule sets a regular schedule.

Source: Cal. Code Regs., tit. 8, §1509.

CALB-LB-36 · Code of Safe Practices

Which of these does Cal/OSHA's construction rule require of every employer?

A. An Injury and Illness Prevention Program (IIPP) and a written Code of Safe Practices, posted at the jobsite office or provided to each supervisor and readily available
B. A safety manual filed with CSLB every year
C. A Code of Safe Practices only for crews larger than 10 workers
D. Verbal safety instructions only

Reveal answer and explanation

Answer and explanation: A. Title 8 §1509 requires an effective IIPP under §3203, plus a written Code of Safe Practices that's posted at each jobsite office or provided to each supervisor, who must have it readily available. B, C and D invent requirements or exemptions.

Source: Cal. Code Regs., tit. 8, §1509.

CALB-LB-37 · IIPP accountability

A company's written IIPP describes inspections and safe-work rules but doesn't name anyone responsible for running the program. Which addition fixes that specific gap?

A. A list of current customer invoices
B. Naming the person or people with authority and responsibility for implementing the program
C. A copy of the company's advertising
D. A line telling every employee to "be careful"

Reveal answer and explanation

Answer and explanation: B. Title 8 §3203(a)(1) requires the program to identify the person or persons with authority and responsibility for implementing it. A and C have nothing to do with safety. D is general advice that doesn't assign anyone responsibility. Naming someone is one required element; it doesn't make the whole program effective by itself.

Source: Cal. Code Regs., tit. 8, §3203.

CALB-LB-38 · Safety Data Sheet access

Crews use a hazardous chemical at a fixed shop. The Safety Data Sheet (SDS) for it is locked in a cabinet that only the absent owner can open. What fixes the access problem?

A. Keep the SDS, on paper or electronically, where workers can get to it right away in their work area during every shift
B. Leave it locked and offer to email it next week
C. Replace the SDS with the supplier's invoice
D. Rely on the product's marketing description

Reveal answer and explanation

Answer and explanation: A. Title 8 §5194(g)(8) requires SDSs to be readily accessible to employees in their work areas during each shift. Electronic access is fine only if it creates no barrier to immediate access. B keeps the barrier in place. C and D aren't safety data. Access doesn't replace the separate duty to train workers on the chemical hazards.

Source: Cal. Code Regs., tit. 8, §5194.

How to read your results

Record correct answers over the number attempted in each section, and keep unanswered items separate. Start the study plan with two topics you missed or guessed; raw correct counts are not comparable across sections of different sizes. Your score here only reflects these 38 questions. It isn't a CSLB score and it can't predict whether you'll pass. A section with 3 to 8 questions is too small a sample to prove you've mastered it, so treat each miss as a topic to go study, not a verdict. This set is not a proportionally weighted exam simulation.

How to read your results
Section	Questions in this set
Business Organization and Licensing	6
Business Finances	5
Employment Requirements	6
Insurance and Liens	5
Contract Requirements and Execution	8
Public Works	3
Safety	5

What the Law and Business exam covers

Every applicant who has to take the Law and Business exam gets the same seven-section outline. The weights are CSLB's own, and CSLB calls them approximate.

What the Law and Business exam covers
Section	Approx. weight	Review focus on this page
Business Organization and Licensing	13%	Business types, who needs a license, qualifier duties, license-number and advertising rules
Business Finances	15%	Cash flow, budgeting, markup vs. margin, depreciation, financial ratios, payroll-tax deposits
Employment Requirements	20%	Hiring paperwork, new-hire reporting, overtime, payroll, record-keeping
Insurance and Liens	12%	Workers' comp duties, business insurance, preliminary notices, lien deadlines and releases
Contract Requirements and Execution	21%	Bidding and estimating math, home improvement contract rules, payments, change orders
Public Works	5%	Prevailing wage, DIR registration, bonding and insurance on public jobs
Safety	14%	Injury and illness prevention, tailgate meetings, injury reporting, hazardous materials

Source: CSLB Law and Business Study Guide, p. 1. It applies to exams scheduled on or after December 1, 2021; the current revision is dated 03-2026.

Contracts and Employment together make up about 41% of the outline, so the study plan starts there. Don't skip Public Works just because it's small. Use its full published topic list rather than treating the three questions here as complete coverage.

The exam is closed book. The official guide lists the references that its questions draw on. The most useful ones for this exam: CSLB's free California Contractors License Law & Reference Book (2026), the EDD's California Employer's Guide (DE 44), IRS Publication 15, DIR's public works material, and the Cal/OSHA construction safety orders.

Rules and numbers to know cold

Cover the right-hand column and quiz yourself. The sources beside each row explain its scope. These are selected rules, not a complete compliance checklist.

Rules and numbers to know cold
Rule	What to know	Source
Minor-work exemption	For casual, minor or inconsequential work: the whole project must be under $1,000, including labor, materials and all other items; no building permit may be required; it cannot be part of a larger operation or split to evade the limit; and the person cannot employ help or make the excluded contractor-style representations. Price alone does not decide the exemption	§7048
Contractor bond	Standard active-license contractor bond: $25,000 face amount, not a premium quote. Additional or increased bonds can apply; inactive licenses do not require this bond while inactive	CSLB; §7071.6
Initial license fee	$200 sole owner · $350 all other business types	CSLB
Qualifier leaves	CSLB must receive notice within 90 days. Failure results in automatic suspension or removal of the affected classification, effective when CSLB receives written notification. The replacement deadline is also 90 days; a requested 90-day extension requires CSLB approval	CSLB
Other personnel changes	Report changes to personnel listed on the license within 90 days of the effective date	CSLB
License number	On contracts, subcontracts, calls for bid and all advertising	CSLB
Vehicle lettering	Commercially registered vehicles: business name and license number, clearly visible in at least 72-point type or letters 3/4 inch high and wide. C-36, C-45 and C-57: name, address and license number in letters at least 1 1/2 inches high on each side	CSLB
Federal payroll-tax deposits	For Form 941 employers required to deposit: applicable lookback liability $50,000 or less → monthly; over $50,000 → semiweekly. $100,000 accumulated on any day within one deposit period → next business day. This is not a FUTA deposit rule	IRS Pub 15, §11
Form I-9	Employment-eligibility verification is separate from withholding. A valid Social Security number alone does not establish authorization to work	IRS Pub 15, Hiring New Employees
New-hire report (DE 34)	Paper reporting: within 20 calendar days of the first day worked for wages. Rehires count after 60+ consecutive days away. EDD specifies a separate twice-monthly arrangement for electronic reporting	EDD
Daily overtime (nonexempt)	Ordinary California rule: 1.5× the regular rate for daily hours over 8 through 12 or weekly hours over 40; 2× after 12 daily hours. Seventh-day rules, alternative workweeks and other exceptions also matter; use the bounded facts in CALB-LB-15	DIR
Workers' comp injury	For an injury causing lost time beyond the shift or treatment beyond first aid, give or mail the claim form within 1 working day of notice or knowledge. After filing, authorize guideline-consistent treatment within one working day while the claim is decided; the pending-decision liability limit is $10,000	§5401; §5402(c)
Home improvement contract	Section 7159 covers specified home improvement contracts with an aggregate price over $500, subject to its definitions and exclusions. Compliant service and repair contracts follow separate rules. This is not the license-exemption threshold	§7159(a)–(c)
Down payment	For covered home improvement contracts, $1,000 or 10%, whichever is less, unless a qualifying security or joint-control exception in §7159.5(a)(8) applies. An ordinary license bond is not automatically that exception	§7159.5
Progress payments	For covered contracts without the §7159.5(a)(8) exception, payments other than the permitted down payment cannot exceed the value of work performed or materials delivered	§7159.5(a)(5), (8)
Right to cancel	Where the statutory cancellation notice applies: 3 business days, or 5 for a senior-citizen buyer; 7 for specified declared-disaster repairs. The clock runs from receipt of the signed, dated contract copy with the required notice, not simply from any signature	§7159(e)(6)–(7)
Change orders	For §7159-covered work: in writing and signed before the changed work starts; include scope, the amount added or subtracted, and the effect on the progress-payment schedule	§7159(c)(5), (d)(13)
Service and repair contract	$750 or less, buyer-initiated contact, reasonably necessary work for the reported problem with no additional goods or services, and payment neither due nor accepted before completion. A signed, dated writing is still required before work	§7159.10
Preliminary notice	When required, give it no later than 20 days after first furnishing to cover the work from the start. Late notice can cover the preceding 20 days and later furnishing; it does not necessarily eliminate all rights	§8204
Recording a lien	Direct contractor: the earlier of 90 days after completion or 60 days after recording a valid notice of completion or cessation. Other claimants: the earlier of 90 days after completion or 30 days after the notice. Validity, service and other statutory conditions still matter	§8412; §8414
Foreclosing a lien	Ordinarily commence the action within 90 days after recording the lien; §8460(b) has a qualifying recorded-credit-extension exception	§8460
Lien releases	Choose progress or final, then conditional or unconditional. A conditional release depends on payment. Do not sign an unconditional release on the assumption it cannot waive rights until payment arrives; use the form and its stated exceptions	CSLB forms and caution
Public works	On projects subject to the relevant duties: register with DIR, pay the applicable DIR prevailing wage, and keep and submit required certified payroll. A subcontractor does not shed its duties because the prime has a license	DIR
Serious injury, illness or death	Report a reportable incident as soon as practically possible, no later than 8 hours after knowledge or when diligent inquiry would reveal it. An employer must demonstrate exigent circumstances for the limited 24-hour exception	8 CCR §342
Tailgate meetings	Construction supervisors hold them, or equivalent meetings, at least every 10 working days	8 CCR §1509
Injury and Illness Prevention Program (IIPP)	An effective written program identifies the responsible people. Construction employers also need a written Code of Safe Practices, posted at the jobsite office or provided to supervisors who keep it readily available	8 CCR §3203; §1509
Safety Data Sheets	Workers must be able to get to them right away in their work area during every shift	8 CCR §5194

Three different dollar figures answer different questions. Under $1,000 is one condition of the minor-work license exemption. Over $500 is the price condition for the specified home improvement contract rules. $1,000 or 10%, whichever is less, caps the ordinary covered down payment. Keep the boundaries and exceptions with the numbers.

Your trade exam: pick your path

Study for the examinations CSLB assigns to you, using each classification's own outline. Many applicants take Law and Business plus a trade exam; approved waivers can change an individual's assignment. "General Building" (B) is one license, not the name of every California contractor exam. Don't borrow another classification's weights just because the topics look similar.

Your trade exam: pick your path
Your classification	What to use
A — General Engineering	The A map below, the construction math, and the A study guide
B — General Building	The B map below, the construction math, and the B study guide
B-2 — Residential Remodeling	The B-2 map below, the construction math, and the B-2 study guide
A C specialty (C-10, C-20, C-36, etc.)	Your own guide from CSLB's study guide list and the worksheet below
C-61 Limited Specialty	CSLB lists no C-61 trade exam; follow your actual Law and Business assignment and any approved waiver

A — General Engineering

A — General Engineering
Section	Approx. weight
Planning and Estimating	15%
Structural Principles	6%
Earthwork and Surveying	15%
Subsurface, Surface, and Elevated Piping Work	21%
Foundation and Concrete Construction	11%
Buildings, Structures, and Related Work	9%
Roadwork and Paving	5%
Safety	18%

Source: CSLB A study guide, for exams scheduled on or after February 1, 2025.

B — General Building

B — General Building
Section	Approx. weight
Planning and Estimating	15%
Framing and Structural Components	20%
Core Trades	30%
Finish Trades	20%
Safety	15%

Source: CSLB B study guide, for exams scheduled on or after January 1, 2025. Core Trades is the biggest section. Its listed topics include plumbing, electrical, HVAC, concrete, earthwork and surveying, insulation and weatherproofing, and roofing. Do not let familiar framing work crowd out those topics.

B-2 — Residential Remodeling

B-2 — Residential Remodeling
Section	Approx. weight
Planning and Estimating	15%
Job Site Preparation	13%
Core Trades Remodeling	25%
Finish Trades Remodeling	18%
Exterior Remodeling	13%
Safety	16%

Source: CSLB B-2 study guide, for exams scheduled on or after August 4, 2021.

Check the dates on your guide

Each CSLB guide shows two dates, and they mean different things. The line at the top tells you which exams the outline covers ("for examinations scheduled on or after…"). The code at the bottom (for example, 13E-B (03-2026)) is just the date the document was last revised. Match the top date to your exam, then study from the references the guide lists. The current B guide, for example, lists the 2025 California codes. That does not establish one code edition for every trade examination.

Check the dates on your guide
Official guide	Examination-date boundary on the guide	Revision footer checked
Law and Business	December 1, 2021	13E-LAW (03-2026)
A — General Engineering	February 1, 2025	13E-A (03-2026)
B — General Building	January 1, 2025	13E-B (03-2026)
B-2 — Residential Remodeling	August 4, 2021	13E-B2 (03-2026)

Use the current CSLB guide directory for replacements and for your specialty's own dates and references.

Why memorizing a question bank backfires

CSLB says its exam questions are written and reviewed by licensed contractors who are actively working in the field. Most trade exams also include questions based on drawings or plans. Remembering an answer letter does not show that you can apply the rule to a new situation. Learn the topic behind each question: be able to explain the rule, work the math, and read the drawing. Sources: official Law and Business guide, test strategy; CSLB’s description of trade examinations.

A study method for any trade guide

Use this worksheet with your own classification's guide. The 1–3 ratings are personal study notes, not official scores or validated readiness levels:

A study method for any trade guide
Step	What to write down
1. Your classification	The code and name exactly as assigned (for example, C-20 Warm-Air Heating, Ventilating and Air-Conditioning)
2. Guide dates	The "exams scheduled on or after" date and the revision code, separately
3. Rate every subtopic	1 = can't explain it, 2 = shaky, 3 = could teach it
4. For every 1 or 2	The reference the guide lists, plus the section or page you studied
5. Apply it	Explain the rule in your own words, label a drawing, or work a calculation
6. Still unsure	Write one specific question to settle from that reference

Construction math practice

Nine original, unofficial practice problems for quantities, units and estimating arithmetic. They don't depend on any code edition. The stated dimensions and allowances are hypothetical, not design specifications, code-compliance advice, cut layouts or complete material orders.

CALB-TM-01 · Concrete volume

A slab is 30 ft by 20 ft and 4 inches thick. What's the concrete volume before waste?

A. 7.41 cubic yards
B. 22.22 cubic yards
C. 200 cubic yards
D. 8.15 cubic yards

Reveal answer and explanation

Answer and explanation: A. Convert the thickness first: 4 in ÷ 12 = 1/3 ft. Then 30 × 20 × (1/3) = 200 cubic feet, and 200 ÷ 27 = 7.407… cubic yards, rounded to 7.41. B treats the slab as 1 ft thick (600 ÷ 27). C labels cubic feet as cubic yards. D adds 10% for waste, but the question asks for the volume before waste.

CALB-TM-02 · Hollow-cylinder volume

A hollow cylindrical sleeve is 10 ft long, with an outside diameter of 12 inches and an inside diameter of 8 inches. What is the volume of material between the outer and inner surfaces? The ends are open; ignore waste and use π = 3.14. Round to two decimal places.

A. 7.85 cubic feet
B. 4.36 cubic feet
C. 3.49 cubic feet
D. 0.87 cubic feet

Reveal answer and explanation

Answer and explanation: B. Subtract the inner-cylinder volume from the outer-cylinder volume: V = π × (R² − r²) × length. The outer radius is 6 inches = 0.5 ft; the inner radius is 4 inches = 1/3 ft. So V = 3.14 × (0.5² − (1/3)²) × 10 = 4.3611… cubic feet, rounded to 4.36. A counts the whole outer cylinder and ignores the hollow center. C gives only the inner void. D squares the difference between the radii instead of subtracting their squares. Keep the radii unrounded until the final step.

CALB-TM-03 · Roof rise

A roof has a 6-in-12 slope, and the horizontal run is 14 feet. What's the total rise?

A. 12 ft
B. 6 ft
C. 7 ft
D. 3.5 ft

Reveal answer and explanation

Answer and explanation: C. A 6-in-12 slope rises 6 inches for every 12 inches of run, which is 0.5 ft per ft. 14 × 0.5 = 7 ft. B reads the "6" as feet of total rise. A uses the 12 from the slope ratio. D halves the correct answer.

CALB-TM-04 · Rafter length

A rafter has a 12 ft run and a 5 ft rise. What's the line length, ignoring the overhang?

A. 7 ft
B. 17 ft
C. 169 ft
D. 13 ft

Reveal answer and explanation

Answer and explanation: D. Use the Pythagorean theorem: √(12² + 5²) = √169 = 13 ft. B adds the two sides together. C forgets to take the square root. A subtracts them.

CALB-TM-05 · Drywall sheets

A 12 × 14 ft room has 8 ft ceilings. Estimating by area, walls only, and ignoring doors and windows: how many 4 × 8 sheets do you need?

A. 12
B. 13
C. 19
D. 6

Reveal answer and explanation

Answer and explanation: B. The perimeter is 2 × (12 + 14) = 52 ft. 52 × 8 = 416 sq ft, and 416 ÷ 32 sq ft per sheet = 13 sheets. A uses 12 ft for all four walls (48 × 8 ÷ 32). C adds the 168 sq ft ceiling (584 ÷ 32 = 18.25, rounded up to 19). D covers the ceiling only (168 ÷ 32, rounded up).

CALB-TM-06 · Board feet

How many board feet are in 20 pieces of 2×10 lumber, each 12 ft long? Use nominal sizes.

A. 240 board feet
B. 200 board feet
C. 400 board feet
D. 4,800 board feet

Reveal answer and explanation

Answer and explanation: C. Board feet = (thickness in inches × width in inches × length in feet) ÷ 12. So (2 × 10 × 12) ÷ 12 = 20 board feet per piece, and 20 pieces × 20 = 400. B uses a 1-inch thickness. A is total linear feet (20 × 12). D forgets to divide by 12.

CALB-TM-07 · Percent grade

A drain line drops 3 ft over 150 ft of horizontal run. What's the grade?

A. 50%
B. 0.02%
C. 20%
D. 2%

Reveal answer and explanation

Answer and explanation: D. Grade = rise ÷ run = 3 ÷ 150 = 0.02, which is 2%. B leaves 0.02 as a decimal but labels it a percent. C divides by 15 instead of 150. A inverts the ratio (150 ÷ 3 = 50) and then incorrectly labels that number as a percent.

CALB-TM-08 · Tile with waste

A floor is 240 sq ft, and you plan for 10% waste. What tile area does that allowance give, before rounding to available package quantities?

A. 250 sq ft
B. 264 sq ft
C. 216 sq ft
D. 240 sq ft

Reveal answer and explanation

Answer and explanation: B. 240 × 1.10 = 264 sq ft. A adds 10 sq ft instead of 10%. C subtracts the waste. D leaves out waste entirely.

CALB-TM-09 · Net wall area

One side of a wall is 14 ft wide and 8 ft high. It has a 3 × 7 ft doorway and a 4 × 3 ft window. What's the net area to finish? Ignore trim and waste.

A. 105 sq ft
B. 112 sq ft
C. 79 sq ft
D. 158 sq ft

Reveal answer and explanation

Answer and explanation: C. The gross area is 14 × 8 = 112 sq ft. The openings are (3 × 7) + (4 × 3) = 33 sq ft. 112 − 33 = 79 sq ft. B doesn't subtract the openings. A subtracts only the opening widths (3 + 4 = 7). D doubles the answer, as if both sides of the wall were being finished.

Your 6-week study plan

Assumptions: five 75-minute sessions a week: 6 hours 15 minutes per week, or 30 sessions and 37 hours 30 minutes in total. This is an editorial study plan informed by CSLB's topic weights, not a formula converting exam percentages into required study time. It's not a CSLB requirement, and it doesn't guarantee a result. If your self-ratings show big gaps, add time.

Run every session the same way: 10 minutes recalling last session's rules without notes, 25 minutes reading the lesson or reference, 25 minutes applying it (questions, calculations, or a drawing), and 15 minutes checking answers and updating your error log.

Your 6-week study plan
Week	Law and Business	Trade exam	End-of-week check
1	Contracts (21%): questions CALB-LB-23 to 30 and the contract rows of the rules table	Fill in the trade worksheet and rate every subtopic. Start your weakest section. Do CALB-TM-01 to 03	Redo every missed contract question without looking at the explanations
2	Employment (20%): CALB-LB-12 to 17. Finances (15%): CALB-LB-07 to 11	Weakest section #2. Do CALB-TM-04 to 06	Work every finance and overtime calculation from a blank page
3	Safety (14%): CALB-LB-34 to 38. Licensing (13%): CALB-LB-01 to 06	Weakest section #3. Do CALB-TM-07 to 09	Say the three dollar thresholds (minor work, contract rules, down payment) from memory
4	Insurance and Liens (12%): CALB-LB-18 to 22. Public Works (5%): CALB-LB-31 to 33	One full pass through every subtopic on your outline	Draw the lien timeline (preliminary notice, recording, foreclosure) from memory
5	All 38 questions in one sitting, without the explanations. Then review every miss and every lucky guess	Re-study the two lowest-rated trade sections from their listed references	Pick two review priorities for each assigned exam from missed, guessed or unstudied topics
6	Misses, guesses and uncovered topics. Run the rules table each study day	Remaining gaps and math practice each study day	Confirm your appointment, your ID, and arriving 30 minutes early

Your 30 study sessions

Use the 75-minute session split above. The weekly overview sets the priorities; these assignments make each study day concrete.

Your 30 study sessions
Week / session	Task	Finish with
1 / 1	Confirm your assigned exams, record the guide dates, and complete the trade worksheet. Read the contract rules table.	A source-matched route and one specific gap in each assigned exam.
1 / 2	Answer CALB-LB-23–27 and read the cited payment, cancellation and service-repair provisions.	The smaller-of deposit calculation and each rule’s controlling conditions.
1 / 3	Answer CALB-LB-28–30. Work the estimate and write a scope/price/progress-payment change checklist.	Shown bid arithmetic and a change-order checklist.
1 / 4	Work on your weakest listed trade topic using its guide-listed reference. Solve CALB-TM-01–03.	Units and intermediate steps, plus the technical source locator.
1 / 5	Redo missed or guessed contract questions without the explanations, then explain every distractor.	An error log and a next task for each unresolved rule.
2 / 1	Read the employment rows and answer CALB-LB-12–17.	A distinction among reporting, eligibility verification, withholding and overtime.
2 / 2	Answer CALB-LB-07–11 and work all finance calculations from a blank page.	The difference between margin and markup, cash and invoices, and deposit schedules.
2 / 3	Read the exact IRS/EDD/DIR sections behind your missed employment and finance answers.	A corrected rule with its scope and source locator.
2 / 4	Review a second weak trade topic and solve CALB-TM-04–06.	A sourced trade application and three shown calculations.
2 / 5	Repeat the finance and overtime calculations without notes. Explain mistakes before checking the key.	Correct arithmetic and two remaining review targets.
3 / 1	Answer CALB-LB-34–38. Read the exact safety provisions linked to the answers.	Immediate reporting versus its outer limit, and the required program/access elements.
3 / 2	Answer CALB-LB-01–06 and read the licensing rows.	The minor-work conditions, notice deadline, lettering rule and bond meaning.
3 / 3	Compare under-$1,000 minor work, over-$500 contracts and the ordinary deposit limit. Revisit missed licensing/safety items.	Three distinct rules with boundaries, not isolated numbers.
3 / 4	Review a third weak trade topic and solve CALB-TM-07–09.	Percent, area and allowance calculations with stated limits.
3 / 5	Reapply the week’s rules to the original question facts without looking at answer letters.	An updated error log separating rule, scope and arithmetic errors.
4 / 1	Answer CALB-LB-18–22 and read the claim, notice, deadline and release sources.	A timeline that preserves the earlier-of and recorded-extension conditions.
4 / 2	Answer CALB-LB-31–33 and read the covered public-works duties.	The separate roles of CSLB licensing, DIR registration, wage determinations and payroll.
4 / 3	Review every published subtopic on your assigned trade outline. Mark unstudied topics separately from wrong answers.	A coverage list that is not limited to these nine math problems.
4 / 4	Study one uncovered trade topic from its listed reference and apply it to a calculation, drawing or process.	One source-backed application and a precise unresolved question, if any.
4 / 5	Draw the lien timeline and explain the release choices without notes; revisit this week’s mistakes.	Correct distinctions among notice, recording, enforcement and release.
5 / 1	Attempt all 38 Law and Business questions without revealing explanations. Do not treat this as an official timed simulation.	Correct/attempted and unanswered counts, with guesses marked.
5 / 2	Review every missed answer and lucky guess against its source.	Two source-backed Law and Business review priorities.
5 / 3	Re-study the first priority trade topic using its actual classification reference.	A rule you can explain, a drawing you can label, or a calculation you can show.
5 / 4	Re-study a different priority trade topic rather than repeating only familiar work.	A second sourced application and updated worksheet.
5 / 5	Rework all nine math problems and the Law and Business calculation items.	Correct units, formulas, intermediate steps and rounding.
6 / 1	Review the rules table and the highest-priority remaining Law and Business gap.	A rule and its exception explained without the key.
6 / 2	Resolve a remaining trade gap and revisit math mistakes.	A sourced application, not a remembered letter.
6 / 3	Revisit missed, guessed and unstudied topics; use the official guide’s examples at their original source.	A list of concepts still needing study without copying official items.
6 / 4	Confirm the appointment, accepted ID/name match, travel, arrival time and any previously approved accommodations.	A test-day checklist based on your current official instructions.
6 / 5	Review the error log, recall the rules and rework one troublesome calculation. Add study time for unresolved gaps.	A next study task based on actual gaps rather than a predicted passing score.

Short on time? Do a 3-week version. Week 1: Contracts, Employment, and rating your trade outline. Week 2: Finances, Safety, Licensing, Liens, Public Works, and your weakest trade sections. Week 3: the full question sets, reviewing misses, and the rules table every day. Squeezing the plan doesn't give you the same preparation, so put your limited time on your real gaps.

Only taking Law and Business? Use the trade sessions for your weakest Law and Business sections.

Turn every miss into a study task

Keep a simple error log. Writing down why you missed something gives you a specific problem to fix. Just noting the right letter doesn't.

Turn every miss into a study task
Question or topic	What I chose or thought	Why it was wrong	Correct rule and where it comes from	Next check
Example: CALB-LB-10	Counted the unpaid invoice as cash	The customer pays next month, not this week	Cash this week = starting cash + money received − bills paid	Rework it tomorrow without the explanation

Tag each miss so patterns show up: didn't know the rule, missed an exception, math or units, or misread the question.

After a failed attempt

The score report for a failed exam shows your overall score, the number you got right, and a breakdown by section. Rebuild the plan around the topic gaps that report reveals, using the current outline; raw correct counts alone are not comparable across differently sized sections. You can retest after 21 calendar days, as long as you're still inside your 18-month window. You can't review the actual exam questions afterward. Study the topics instead of copying or sharing protected exam content; PSI identifies examination subversion, including unauthorized reproduction, under Business and Professions Code §123. Sources: CSLB exam FAQ; PSI Law and Business bulletin.

Exam facts, fees and retakes

How many questions are there, and what score passes? CSLB doesn't publish a question count or a fixed passing percentage in its current study guides or its exam FAQ. CSLB's own studying page says you'll be told at the test site what percentage of correct answers you need for each exam. Do not use a third-party practice count or cutoff as the rule for your assigned examination. If you fail, the report shows your score; if you pass, it doesn't.

Exam facts, fees and retakes
Question	Answer
Who runs the exams?	CSLB writes the exams and makes the licensing decisions. PSI schedules and delivers the exams. CSLB exam FAQ
Which exams?	Follow your CSLB assignment. Many applicants take Law and Business plus their classification’s trade exam; C-61 has no trade exam, and approved waivers can change testing requirements. Official guide directory
What is the format?	Computer-based. The checked Law and Business, A, B and B-2 guides use four choices and one best answer. There is no penalty for guessing. Law and Business guide
Is it open book?	No. The Law and Business, A, B and B-2 guides all say closed book. A calculator is provided, and personal calculators are on the list of prohibited items. The separate asbestos open-book licensing step is not one of these qualifying exams and does not authorize asbestos work. Study guide; FAQ; Asbestos step
How long is each exam?	3½ hours per exam, not one shared allowance for two exams. PSI’s Law and Business tutorial, up to 15 minutes, does not count against its exam time. CSLB FAQ; PSI bulletin
What does it cost?	The original CSLB application fee is $450. PSI’s Law and Business bulletin lists $51.43 per registration, first attempt or retake, nonrefundable and nontransferable. That bulletin does not establish the fee for every trade exam; use the fee shown for your assigned trade in PSI’s registration instructions. The initial license fee is $200 for a sole owner or $350 for other business types. The standard contractor bond is $25,000 in face amount, not a $25,000 quoted premium. Fingerprinting, applicable insurance and other entity-specific requirements can add costs; this is not a complete licensing budget. CSLB fee schedule; Law and Business fee; Issuance requirements
When can I schedule?	Only after CSLB accepts your application and refers it for testing. Follow your Notice to Schedule and book through PSI online or at (877) 392-6422. To avoid forfeiting the registration fee, PSI must receive cancellation at least 2 days before the appointment; do not treat this as two business days. Use PSI’s stated cancellation process. CSLB scheduling and cancellation FAQ
Where?	In person only. CSLB’s FAQ lists 20 PSI sites in California plus Wilsonville, Oregon. Law and Business is also offered in other states; trade exams are offered only in California and Oregon. Check the current site list when booking. CSLB locations
Can I test in Spanish?	Yes, for 10 exams listed by CSLB: Law and Business, B, C-8, C-9, C-15, C-27, C-33, C-36, C-39 and C-54. For other exams, CSLB can approve a translator. A Spanish study-guide PDF alone does not establish that its examination is offered in Spanish. Exam translations
What do I bring?	One valid, unexpired government-issued photo ID from CSLB’s accepted list, with a name that matches your application. Arrive 30 minutes early. Accepted ID; PSI arrival instructions
Retakes?	You may retest as necessary within 18 months from CSLB’s acceptance (posting) of the application, waiting 21 calendar days between attempts. Follow your personal application void date and scheduling instructions; this is a calendar-month window, not a 540-day calculation. CSLB retake and application-window rules
Testing accommodations?	Request them through CSLB and wait for approval before you schedule. Use the request form linked in the official FAQ. Accommodations Testing
What happens after I pass?	CSLB mails a Bond and Fee letter. Your score report isn’t a license. Complete the applicable issuance requirements, including the separate asbestos open-book examination for new applicants. CSLB: Issuing My License

Official resources

CSLB Examination Study Guides: classification-specific guides where a trade exam exists, with the English and Spanish versions listed by CSLB
CSLB Law and Business Study Guide (PDF)
CSLB California Contractors License Law & Reference Book, 2026 (PDF)
CSLB Examinations FAQ: scheduling, ID, retakes, translators, accommodations
PSI scheduling for CSLB exams: available after CSLB refers your application for testing
Home improvement contract requirements, payments, and service and repair contracts
CSLB lien-release forms; preliminary-notice timing; direct-contractor lien deadline; other-claimant lien deadline; lien enforcement
DIR public works, Cal/OSHA Title 8 §1509, IRS Publication 15, EDD new-hire reporting

CSLB says no schools or application-prep services are officially affiliated with it. CSLB exam FAQ.

Last verified: September 30, 2026, for the linked CSLB guide versions and exam logistics, PSI’s Law and Business fee and test-day instructions, and the statutes and agency guidance cited in the lessons. Calculations were checked from the stated inputs.

By the Castleport Test Prep Editorial Team.

AI tools assisted with drafting, organization and source checking. Source checking is not qualified professional review. About our editorial approach.

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CALB-LB-07

CALB-LB-08

CALB-LB-09

CALB-LB-10

CALB-LB-11

Source: IRS Publication 15 (2026).

CALB-LB-12

Source: EDD: New Hire Reporting.

CALB-LB-13

Source: EDD: New Hire Reporting.

CALB-LB-14

Source: IRS Publication 15 (2026): Hiring New Employees; IRS: About Form W-4.

CALB-LB-15

Source: DIR Labor Commissioner: Overtime FAQ.

CALB-LB-16

Source: IRS Publication 15 (2026).

CALB-LB-17

Source: IRS: About Form W-4.

CALB-LB-18

Source: Labor Code §5401; Labor Code §5402.

CALB-LB-19

Source: Civil Code §8204.

CALB-LB-20

Source: Civil Code §8412; Civil Code §8414.

CALB-LB-21

Source: Civil Code §8460.

CALB-LB-22

Source: CSLB: Conditional and Unconditional Waiver and Release Forms.

CALB-LB-23

Source: Bus. & Prof. Code §7159.5.

CALB-LB-24

Answer and explanation: A. 10% of $6,000 is $600, which is less than $1,000, so $600 is the cap. B picks the larger of the two limits. C uses 5%. D uses 20%.

Source: Bus. & Prof. Code §7159.5.

CALB-LB-25

Source: Bus. & Prof. Code §7159.5.

CALB-LB-26

Source: Bus. & Prof. Code §7159.

CALB-LB-27

Source: Bus. & Prof. Code §7159.10; Bus. & Prof. Code §7159.

CALB-LB-28

CALB-LB-29

Source: CSLB Advertising Guidelines; 2026 California Contractors License Law & Reference Book.

CALB-LB-30

Source: Bus. & Prof. Code §7159.

CALB-LB-31

Source: DIR: Public Works Contractor Registration; DIR: Public Works Contractors.

CALB-LB-32

Source: DIR: Prevailing Wage.

CALB-LB-33

Source: DIR: Public Works Contractors.

CALB-LB-34

Source: Cal. Code Regs., tit. 8, §342.

CALB-LB-35

Source: Cal. Code Regs., tit. 8, §1509.

CALB-LB-36

Source: Cal. Code Regs., tit. 8, §1509.

CALB-LB-37

Source: Cal. Code Regs., tit. 8, §3203.

CALB-LB-38

Source: Cal. Code Regs., tit. 8, §5194.

CALB-TM-01

CALB-TM-02

CALB-TM-03

CALB-TM-04

Answer and explanation: D. Use the Pythagorean theorem: √(12² + 5²) = √169 = 13 ft. B adds the two sides together. C forgets to take the square root. A subtracts them.

CALB-TM-05

CALB-TM-06

CALB-TM-07

CALB-TM-08

Answer and explanation: B. 240 × 1.10 = 264 sq ft. A adds 10 sq ft instead of 10%. C subtracts the waste. D leaves out waste entirely.

CALB-TM-09

Answer key and explanations

CALB-LB-01

Source: Bus. & Prof. Code §7048.

CALB-LB-02

Source: Bus. & Prof. Code §7048; Bus. & Prof. Code §7159.10.

CALB-LB-03

Source: Bus. & Prof. Code §7048.

CALB-LB-04

Source: CSLB: Change in Personnel.

CALB-LB-05

Source: CSLB Advertising Guidelines.

CALB-LB-06

Source: CSLB: Issuing My License; 2026 California Contractors License Law & Reference Book.

CALB-LB-07

CALB-LB-08

CALB-LB-09

CALB-LB-10

CALB-LB-11

Source: IRS Publication 15 (2026).

CALB-LB-12

Source: EDD: New Hire Reporting.

CALB-LB-13

Source: EDD: New Hire Reporting.

CALB-LB-14

Source: IRS Publication 15 (2026): Hiring New Employees; IRS: About Form W-4.

CALB-LB-15

Source: DIR Labor Commissioner: Overtime FAQ.

CALB-LB-16

Source: IRS Publication 15 (2026).

CALB-LB-17

Source: IRS: About Form W-4.

CALB-LB-18

Source: Labor Code §5401; Labor Code §5402.

CALB-LB-19

Source: Civil Code §8204.

CALB-LB-20

Source: Civil Code §8412; Civil Code §8414.

CALB-LB-21

Source: Civil Code §8460.

CALB-LB-22

Source: CSLB: Conditional and Unconditional Waiver and Release Forms.

CALB-LB-23

Source: Bus. & Prof. Code §7159.5.

CALB-LB-24

Answer and explanation: A. 10% of $6,000 is $600, which is less than $1,000, so $600 is the cap. B picks the larger of the two limits. C uses 5%. D uses 20%.

Source: Bus. & Prof. Code §7159.5.

CALB-LB-25

Source: Bus. & Prof. Code §7159.5.

CALB-LB-26

Source: Bus. & Prof. Code §7159.

CALB-LB-27

Source: Bus. & Prof. Code §7159.10; Bus. & Prof. Code §7159.

CALB-LB-28

CALB-LB-29

Source: CSLB Advertising Guidelines; 2026 California Contractors License Law & Reference Book.

CALB-LB-30

Source: Bus. & Prof. Code §7159.

CALB-LB-31

Source: DIR: Public Works Contractor Registration; DIR: Public Works Contractors.

CALB-LB-32

Source: DIR: Prevailing Wage.

CALB-LB-33

Source: DIR: Public Works Contractors.

CALB-LB-34

Source: Cal. Code Regs., tit. 8, §342.

CALB-LB-35

Source: Cal. Code Regs., tit. 8, §1509.

CALB-LB-36

Source: Cal. Code Regs., tit. 8, §1509.

CALB-LB-37

Source: Cal. Code Regs., tit. 8, §3203.

CALB-LB-38

Source: Cal. Code Regs., tit. 8, §5194.

CALB-TM-01

CALB-TM-02

CALB-TM-03

CALB-TM-04

Answer and explanation: D. Use the Pythagorean theorem: √(12² + 5²) = √169 = 13 ft. B adds the two sides together. C forgets to take the square root. A subtracts them.

CALB-TM-05

CALB-TM-06

CALB-TM-07

CALB-TM-08

Answer and explanation: B. 240 × 1.10 = 264 sq ft. A adds 10 sq ft instead of 10%. C subtracts the waste. D leaves out waste entirely.