MHIC NASCLA Contractors Practice Exam

Which individuals are exempt from licensure requirements?

1. Only employees for labor services

2. Only salespersons

3. Employees for clerical work

4. Both a and b

The correct answer is: Both a and b

Certain individuals do not require a contractor license because their roles are considered exempt under licensing regulations. Employees who provide labor services typically fall under this exemption, as their work does not involve independent contracting or business management responsibilities. Similar to labor service employees, salespersons operate under the purview of the licensed contractor, facilitating sales without owning the contracts themselves. This exemption acknowledges the nature of their jobs, which are primarily supportive roles to the core contracting activities. Clerical employees, while essential to the operation of a contractor's business, are generally not included in the same exempt category since their responsibilities focus on administrative tasks rather than direct labor or sales related to contracting activities. Therefore, individuals providing labor services and sales support together qualify for the exemption, reflecting the roles that support rather than independently manage contracting operations.