Oklahoma Electrical Business and Law

Everyone applying for an Oklahoma electrical contractor license, Unlimited, Limited or Residential, takes it alongside the trade exam. So do contractors coming in by reciprocity, who are licensed as journeymen until they pass it, and applicants approved for exam equivalency, which waives the trade exam but not this one. If you already hold an Oklahoma electrical contractor license and passed Business and Law for it, adding another category does not require it again.

Fifty questions in 2 hours, open book, at a PSI test center, and you need 70%, or 35 correct. Bidding and estimating is the largest area at 10 questions, then financial management at 8, project management and supervision at 7, licensing requirements at 6, contracts, labor and personnel, and payroll taxes at 5 each, and risk management at 4.

PSI lists the NASCLA Contractor's Guide to Business, Law and Project Management (Basic 14th edition), OAC 158:40 (Electrical Industry Regulations), OAC 158:10 (the CIB fine schedule), the Electrical License Act (Title 59), the lien law (Title 42, Chapter 3), the Workers' Compensation Act (Title 85A) or CIB's excerpts, and CIB's free Unofficial Administrative Rules and Courtesy Exam Study Aids Book. Except for code books, later editions are allowed. You may highlight and permanently tab them but not write in them.

The business questions are checked against the NASCLA Contractor's Guide, Basic 14th edition, the edition PSI lists, and each cites its chapter. The Oklahoma questions come from the Electrical License Act (59 O.S. 1680–1699, as amended through November 1, 2026), OAC 158:40 as effective July 11, 2026, the OAC 158:10 fine schedule, the lien law (42 O.S. 141–154) and the Administrative Workers' Compensation Act.

The licensing area turns on the $5,000 license bond and $50,000 general liability insurance, proof of workers' compensation, showing your license number with the "OK" prefix in letters at least 2 inches high on both sides of every work vehicle and on all advertising, contracts and bids, the rule that a contractor represents only one firm, annual renewal by the end of your birth month, and the CIB fine schedule, such as $500 for a first offense of contracting without an active license and $1,000 after that.

An active contractor license needs proof of a workers' compensation policy or an exemption (OAC 158:40-5-5). Under the Administrative Workers' Compensation Act, a prime contractor is liable for the employees of a subcontractor who fails to secure coverage, and an employer who deducts any part of the premium from an employee's pay commits a misdemeanor.

PSI charges $92, and you need 70%. After a failed attempt you wait 30 days. A passed portion counts for three years from the date CIB approves you to test for the contractor license; after that you retake both portions.

No. This is Oklahoma's own exam, written to PSI's Oklahoma outline and including Oklahoma licensing, lien and workers' compensation law. The NASCLA guide is one of its references, but Oklahoma requires this Business and Law exam of every contractor applicant, even when the trade exam is waived.

It is open book and the guide is a listed reference, so most candidates bring it; NASCLA lists the Basic 14th edition at $110. The Oklahoma statutes and rules are free online, and CIB gives out its unofficial rules and study aids book at no charge.