The exam’s seven sections and their weights
Almost everyone who applies takes this exam as well as the exam for their trade. The board calls the percentages approximate.
| Section | Weight | What it covers |
|---|---|---|
| Contract Requirements and Execution | 21% | Bidding, cost control, project organization, contracts and payments |
| Employment Requirements | 20% | Hiring, supervising and training, evaluation and record keeping, payroll |
| Business Finances | 15% | Cash management, budgeting and planning, taxes, financial reporting |
| Safety | 14% | Training and reporting, general safety, hazardous or unknown materials |
| Business Organization and Licensing | 13% | Company organization, licensing requirements, advertising and subcontracting |
| Insurance and Liens | 12% | Workers’ compensation, business insurance, liens and other remedies |
| Public Works | 5% | Prevailing wage, bonding, insurance |
Source: CSLB, Law and Business Study Guide, 13E-LAW (03-2026) [1]
What the exam is like on the day
- Multiple choice with four choices and one BEST answer. Closed book. Some questions need math, and a calculator is provided. There is no penalty for guessing.[1]
- You get 3 hours 30 minutes for the exam. The on-screen tutorial, up to 15 minutes, does not count against that time.[2]
- The content, format and exam plan of the English and Spanish exams are the same. While reading a question in Spanish, the candidate can click a button to the right of the screen to see the question in English.[3]
What the board does not publish about the exam
The board does not publish the number of questions. Neither its study guide nor PSI's guide states it.[1] The board does not publish the passing score: it says the percentage needed varies by exam and candidates can ask the board.[4]
Where the exam’s questions come from
The board’s study guide lists the laws and guides the exam covers. The main ones are free:
- The board’s Law Book. The 2026 Law Book came out January 15, 2026, with the changes effective January 1, 2026; it is a free PDF on the board's site.[5]
- The EDD’s California Employer’s Guide, for state payroll and taxes.
- The IRS employer’s tax guide, for federal taxes, and Cal/OSHA’s safety rules.
The study guide is free. The board's study guide applies to exams scheduled on or after December 1, 2021; its publisher list is current as of March 2026.[1]
Where to start studying
Contracts and employment are the two biggest sections, and both have math: down payments, overtime, payroll taxes. First see where you stand in all seven sections with the free check. For the math, use the down payment calculator and the markup and margin calculator, free.
Will the exam change?
In 2025 the board completed an occupational analysis for the Law and Business exam (the study that comes before a new version of an exam).[6] Until a new version comes out, we follow the board’s current study guide.
Frequently asked questions
How many sections does the Law and Business exam have?
Seven. Contracts 21%, employment 20%, finances 15%, safety 14%, business organization and licensing 13%, insurance and liens 12%, and public works 5%.[1]
Can I bring books? Is there a calculator?
Multiple choice with four choices and one BEST answer. Closed book. Some questions need math, and a calculator is provided. There is no penalty for guessing.[1]
Does the Spanish exam cover the same content?
Yes. The content, format and exam plan of the English and Spanish exams are the same. While reading a question in Spanish, the candidate can click a button to the right of the screen to see the question in English.[3]
Sources
- CSLB, Law and Business Study Guide, 13E-LAW (03-2026), 1; 1-2 (read November 13, 2026)
- PSI, Licensing Examination Information Guide: Law and Business (CSLB), 1, 8 (read November 13, 2026)
- CSLB, Preparing for the Exam, 13P-104/0326, 2 (read November 13, 2026)
- CSLB, Get Licensed to Build (May 2025 edition), 25 (Q15) (read November 13, 2026)
- CSLB Industry Bulletin #26-01, Jan 15 2026: 2026 Law Book Now Available, 1 (read November 13, 2026)
- CSLB, 2025 Accomplishments and Activities Report, 28 (read November 13, 2026)
Reviewed November 13, 2026. Published by ContratistaListo. The sources above are the authority. This is a summary in our own words: check the source before you act on it.