Exam outline

CSLB Law and Business Exam Outline

Updated September 2026

CSLB's Law and Business study guide splits the exam into seven content areas and publishes an approximate weight for each. Here they are, biggest first, with plain-English notes on what each one covers.

The seven areas and their weights

What each area covers

• Contract Requirements and Execution - bidding, cost control, project organization, and the home improvement contract rules in B&P Code 7159: what must be in writing, the down payment cap, progress payments, change orders, and the buyer's right to cancel.
• Employment Requirements - hiring paperwork (Form I-9, new-hire reporting), overtime, meal periods, final pay, paid sick leave, and who counts as an employee.
• Business Finances - financial statements, payroll tax deposits, EDD filings, 1099 and W-2 deadlines, sales and use tax.
• Safety - Cal/OSHA: the written Injury and Illness Prevention Program, the Code of Safe Practices, tailgate meetings, fall protection, trenches, asbestos.
• Business Organization and Licensing - who needs a license, the qualifier's role, bonds, entity types, advertising rules, and penalties for unlicensed work.
• Insurance and Liens - workers' compensation, liability insurance for LLCs, and the mechanics lien process from preliminary notice to foreclosure.
• Public Works - prevailing wage, DIR contractor registration, apprentices, certified payroll, and public works bonding and insurance requirements.

How to use the weights

Spend your time where the points are. Contracts and Employment together are 41% of the exam - weak spots there hurt far more than a weak spot in Public Works at 5%.

CSLB calls these percentages approximate. Our exam simulator draws its questions in these proportions (rounded to whole questions), so a practice exam feels like the real mix.

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