Legal Question in Construction Law in California

Responsible Managing Employee

I am considering taking a job in which I would be the RME for my employer. What contractual safeguards are abailable to me? What compensation is usual for using another's license?

Asked on 5/28/06, 12:16 pm

1 Answer from Attorneys

Gary Redenbacher Redenbacher & Brown, LLP
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Re: Responsible Managing Employee

You won't be using another's license. You are going to be the Responsible Managing Employee. This means that you are the key employee who will have to take the licensing test for the corporation. As the RME, you should be overseeing all the onsite work that the corporation will be doing. Compensation for an RME varies markedly throughout the state, but since RME's are very valuable, I wouldn't expect your salary to be less than, say, $60,000 per year. It isn't unusual for an RME of an established corporation to earn in excess of $100,000 per year.

As an employee, you won't have any direct liability for work that you do (unless you intentionally hurt somebody or something). Liability, by law, would be upon the corporation. Should you personally get sued for work performed for the corporation, the corporation is required by law to hire a lawyer to defend you. If there is any judgment, the corporation must also indemnify you.

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Answered on 5/28/06, 5:19 pm

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