Legal Question in Construction Law in California

If you are a sole proprietor, no. I have a client with this very issue who was cited by the CSLB for failing to carry worker's comp insurance because his "business partner" is considered an employee in their eyes. You could form a corporation, make him an officer of the corporation, and you could qualify the company, keeping your existing license separate. In such a case, you wouldn't need worker's comp insurance, he wouldn't be "on the license", etc.

Mr. Campbell's answer is technically correct, but I think confusing in the context of your question. Your question, however, is also confusing because you throw around terms like "partner" and "on my license," which have pretty specific legal meanings and you are not specific about the business arrangement you are proposing or have created.

The CSLB licenses individual sole proprietors, partnerships, corporations and joint ventures, and just recently LLC's. If you are a sole proprietor and hold your license as an individual sole proprietor, what you need to do when you bring in a "partner" depends on exactly what your arrangement with the "partner" will be. If you are forming a true legal general partnership, then you will need to convert your license so that you will be the responsible managing partner of the partnership. If you are forming some other business entity, such as a corporation or LLC, you will need to convert your license so that you are the responsible managing officer of the business entity.

If you are NOT forming a formal business entity with this other person, then you MUST make them an employee. Otherwise you run afoul of the workers compensation issues Mr. Campbell raises. The other person must either be an actual co-owner of the business, in which case you must actually form the business entity and license it, or they must be an employee and treated accordingly. Considering that you lose your license for not having workers compensation insurance, and considering that anyone you do work for can cancel your contract, refuse to pay you, and even take back pay for work you did if you don't have a proper license when doing work, this is NOT something to try to do the "easy" way. Dot your i's and cross your t's on this or you risk losing everything.