Study sheet
Law and Business Numbers to Memorize
Updated September 2026
The Law and Business exam is closed book, and a big share of it is exact figures. These are the ones that show up again and again, grouped by topic. Each one is checked against the law or the agency page it comes from.
Licensing
License needed at
$1,000 or more in labor and materials combined (or any job needing a permit or workers)
Experience to qualify
4 years journey-level within the last 10
Extra LLC worker bond
$100,000
Replace a departed qualifier within
90 days
Home improvement contracts
Written contract required over
$500
Largest down payment
$1,000 or 10% of the price, whichever is less
Right to cancel
3 business days (5 if the buyer is 65 or older)
Service and repair contract
Jobs of $750 or less
Liens
Preliminary notice
Within 20 days of starting work or delivering materials
Notice of completion
Optional - if the owner records one, within 15 days of completion
Record a lien, no notice of completion
90 days after completion
Record a lien, with notice of completion
60 days direct contractor, 30 days subs and suppliers
Sue to foreclose the lien
Within 90 days of recording it
Payroll and employees
Final pay when you fire someone
Immediately
Final pay when someone quits without notice
Within 72 hours
Waiting-time penalty cap
30 days of wages
Paid sick leave
40 hours or 5 days a year
Form I-9 Section 2
Within 3 business days of hire
Report a new hire to EDD
Within 20 days
Public works and safety
Prevailing wage applies over
$1,000
DIR registration fee
$400 per fiscal year
Apprentices required at
$30,000 or more, 1 apprentice hour per 5 journeyman hours
Tailgate safety meetings
At least every 10 working days
Cal/OSHA trench permit
5 feet or deeper that workers enter
How to make them stick
Learn the reason behind each number, not just the number. The down payment cap protects homeowners from paying for work that never happens; the 20-day notice warns an owner that someone they never hired could lien the house. A reason is much easier to remember than a bare figure.
Then drill them in questions, not flashcards. The exam asks you to apply a figure to a situation, and our practice questions do the same.
Test yourself on the numbers
Ten free questions, including some built around these figures - then drill the rest in the full course.
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