The trial court did not err in refusing defendant’s proposed jury instruction regarding the plaintiff contractor’s responsible managing employee. Under B&P Code 7068, an RME is responsible for exercising that direct supervision and control of his or her employer’s or principal’s construction operations as is necessary to secure full compliance with the contractor’s licensing requirements and contractor’s licensing board’s regulations. The RME is not required to supervise each construction project that the contractor performs. If the RME fails to exercise the required general supervision of the contractor’s operations (i.e., is a “sham RME”), the contractor’s license is not automatically suspended, but the contractor is acting outside the scope of its contractor’s license and is barred from recovering any compensation for its work.