CA LLC Registration & Licensing and Asbestos Abatement Rules

Misconception, rumor, misunderstanding or what we don’t know we don’t know can detour your route to obtaining a contractor’s license fast. The relatively new rules for LLC licensing are still a learning curve for many, so a mistaken assumption isn’t a surprise. We also ‘double down’ on questions relating to asbestos…

Q:  We are going to be applying for a Limited Liability Company (LLC) license using an individual who was previously licensed three years ago.  Will the license only show her name, or will all the partners’ names also show on the license?

A:  First of all, the license is issued in the name of the LLC as registered with the California Secretary of State.

In order to obtain an LLC Contractor’s License, you will be required to register the LLC with the CA Secretary of State. In addition, you must file a Statement of Information with the Secretary of State within 90 days of your Registration.   The Statement of Information must list any Manager(s) appointed, or if no Managers have been elected or appointed, each member of the LLC.  The personnel you list on the Statement of Information is the same personnel you must list on your contractor’s license application, which in turn will be reflected as personnel on your Contractor’s License.  So, as long as the Partners are listed on the Statement of Information, they will also be listed, and have signing authority, for the LLC Contractor’s License.

Q:  My husband is an asbestos abatement Contractor from Oregon and he has many residential projects coming up in California, which they need him to start in the beginning of June. I called Cal/OSHA last month to find out the requirements and they said that he would need to take a course, complete a DOSH registration form, and pay a fee.  Now that we are in the process of completing the registration application, it appears that we also need to be licensed with the CSLB in order to complete the DOSH registration.  What are the requirements for the CSLB and how long will that take?

A:  In order to obtain an unrestricted DOSH registration, you are required to have a “C-22” (Asbestos Abatement) Contractor’s License.  Your husband will be required to document at least four years of full time work experience doing asbestos abatement work and take and pass the law and trade exams.  The CSLB also requires that he is in process of registering with DOSH in order to qualify, which it sounds like he has covered. Contact our office if you’d like assistance with the licensing process.

Q:  We are a restoration contractor out of Arizona and we just recently obtained our California General Building (“B”) Contractor’s License.  Occasionally when doing our demo work we come across asbestos.  What is the restriction for how much asbestos we can remove without having that specialty license/certification?

A:  Asbestos abatement or removal does not require an asbestos certification if the total area is less than 100 square feet.  Cal/OSHA regulates all asbestos handling, regardless of setting, and you can contact the asbestos unit at ACRU@dir.ca.gov.

NV Financials, AZ Well Drilling, Solar Licenses Required and Who Can Sign Off Experience

To paraphrase, ‘ours is not to wonder why’ and you too can ‘profit’ from knowing the rest of that wise old saying! Another contractor is looking to ‘wet’ his whistle in AZ, but helps us discover why it’s hard to catch water in ‘hoops’ when you’re jumping through them. The last contractor requires a ‘top secret’ answer…

Q:  Our company has been licensed for many years in California and we are in the process of completing an application to obtain a Contractor’s License in Nevada.  Why does the Nevada Contractor’s Board require a financial statement?  Is the company going to have to show a profit?

A:  Unfortunately I cannot really answer “why” the Nevada Contractor’s Board requires a financial statement. They just do.  However, I do know you have to show some financial strength in order to qualify for the License.  First and foremost, you must have a positive operating balance.  The equity requirement and the type of financials you must provide vary depending on the bid limit you are requesting.

Q:  We are a water well drilling contractor and we need to get licensed in Arizona.  What are the requirements?

A:  First, you will need to have a Qualifying Individual who can document at least two years of experience in the well drilling trade.  That individual will be required to take and pass two exams.  The first is a Business/Management exam, which consists of questions regarding State and Federal laws as well as questions testing your knowledge of the management of construction projects and business and financial management.  The second exam is a trade exam, which unlike most trade exams in Arizona, is administered by the Arizona Department of Water Resources.

In addition to the experience/exam requirements, there are many more steps involved with obtaining an Arizona Contractor’s License so please contact me so that we can discuss in further detail.

Q:  We need to file for a new license in California to do civil work and for building a solar project.  What type of license would be required and how long does the process take?

A:  There are several classifications that allow Contractors to perform solar work.  An “A” (General Engineering) contractor is permitted to install solar energy systems and would also allow you to perform civil construction work.  “B” (General Building) contractors are also authorized to install solar energy systems, however it would not be the appropriate classification for heavy civil work.  There are also several specialty classifications that allow you to do solar work, such as the “C-46” (Solar) classification, however you cannot undertake or perform any additional building or construction trades with the “C-46” unless it is directly related to installing a thermal or photovoltaic solar energy system.

As far as how long it takes, at present the CSLB is taking about 8-10 weeks to process new applications.

Q:  I have worked for a General Contractor for many years and I want to apply for my own Contractor’s License but I don’t want my employer to know.  What sort of documentation can I provide to prove my experience without having to go to my employer for a reference?

A:  Anyone who has knowledge of your work background can sign to certify your experience.  In addition to your certifier’s verification, you may also be required to submit W-2’s to document your experience working for a licensed General Contractor.  You should also indicate in writing with your application that you prefer the CSLB not contact your current employer.

Joint Ventures and Corporate License Transfers to LLC and Temporary Contractor Licensing

Assisting contractors is what we do. While many questions have a simple and direct answer to provide a solution that’s not always the case. It’s one of the reasons this column is a resource and a place to start unraveling the complex rules and regulations contractors work in daily. When multiple entities want to work together these days it has become even more complicated…

Q:  We currently have two licensed corporations in California.  We are going to open a third entity, which will operate as a Limited Liability Company (LLC), and we need to form a Joint Venture between the new LLC and one of the currently licensed corporations.  My question is two parts.  First, can we apply for a Joint Venture license with only one entity being actively licensed, or do we need to obtain a license for the LLC prior to applying for the JV License?

 

The two existing corporate licenses share the same RMO (Responsible Managing Officer).  He is 50% owner of each company, including the new LLC to be formed.  In the case that the LLC needs a license prior to applying for the JV and we use the same RMO, would we need to find a new Qualifying Individual for the Joint Venture license since our RMO will be at his limit of 3 licenses?

 

A:  To answer the first part of your questions, a Joint Venture license in California is made up of two licensed contractors, so the new LLC will need to obtain its own license prior to applying for a JV license.

In regards to your second question, Joint Venture licenses don’t count in the “up to 3 licenses at the same time” rule.  All Qualifying Individuals from each entity of a JV must be listed on and sign the application.

Q:  Our company is licensed in Arizona and we have an opportunity to do a fairly large job in Southern California, but it’s very short term.  Does California have any sort of temporary contractor’s license that we can register for since we only plan to do one project?

A:  No, California does not have a temporary Contractor’s License.

Q:  We are a 30 year-old ‘S’ Corp with a “C-10”, “C-20” and “C-7” license.  We plan to form a LLC with the existing ‘S’ Corp as 100% owner of the LLC, with the intent that all future contracting will be done by the LLC.  The ownership of the ‘S’ Corp is not changing.  I see where I can apply for the LLC license and keep our existing license number.  Its under 600,000 and we want to keep a low number.  During the transition where we finish existing contracts in the ‘S’ Corp and bidding new work in the LLC, can I use the same license to do both or do I need to get a separate license for the ‘S’ Corp to finish out existing work for contracts I cannot transfer to the LLC?

 

A: Okay. An LLC and a corporation, or any two separate entities for that matter, cannot use the same license number at the same time.  So in order to continue doing business under the corporation, it would need to obtain its own license.

Additionally, just FYI, if you want to transfer the corporate license number to the LLC, the following conditions are required:  1) The corporate license is in good standing immediately before its cancellation in connection with the application for an LLC license; 2)  The LLC was formed by a corporation to continue the business of the corporation subsequent to the cancellation of the corporate entity’s license; and 3) The personnel listed for each entity are the same. Contact our office if you’d like assistance with this process.

 

Qualifying Individual, RMO or RME, General Experience Requirements and Family Waiver

What you know and what is written in contractor rules sometimes aren’t the same thing, but not always! However, it might take an expert to know the difference. While work experience counts, rolling it over from your ‘minor’ years might be a major issue when applying for a license. The chances for a contractor’s wife to be licensed are slim, but not none…

Q:  Our corporation currently has an “A” (General Engineering) license and we are in a dispute with a previous contract owner who is arguing that we should have had more than one Qualifying individual (RME/RMO) on our license.  According to the CSLB, only one Qualifying individual is permitted for each classification that is reflected on the license.  We only have the “A” class.  Can you tell me where this rule/law is stated, beyond just conversation with the CSLB, so we can provide it to the opposing party?  I’m hoping that it’s in print somewhere and not just an internal policy.

A:  B&P Code Section 7068, which outlines the qualifications of a Responsible Managing Officer (RMO)/ Responsible Managing Employee (RME), repeatedly refers to the Qualifying individual, whether it be an Officer, Employee, Member, etc.  The code section always refers to the Qualifying individual in the singular, not in the plural.

Q:  We are going to be applying for a new contractor’s license.  Does it change the process at all if we use an RMO vs. an RME?

A:  The application process is the same whether your Qualifying individual is an RME or an RMO.  The difference is the individual’s title.  RMO stands for Responsible Managing Officer, so the person would need to be an Officer of the corporation.  If the person is not an Officer, they would be an RME, which stands for Responsible Managing Employee.  RME’s can only Qualify one license at a time.  RMO’s can be on up to three licenses at a time under certain circumstances.  Contact our office if you need further clarification in making the choice.

Q:  My son who has been involved in the family business for many years wants to get his Contractor’s License.  He’s 21 years old and he worked part time for the company from age 16-18, and then full time ever since.  Will that qualify him to sit for the General Building exam?

A:  In order to qualify for a Contractor’s License in California, he needs to document at least four years of full time work experience in the trade being applied for, at Journeyman level or above.  It is very difficult to prove full time Journeyman level experience at this age, being that most individuals in their early 20’s have not been in the workforce at that level for over 4 years.  In my opinion your son will have a better chance of qualifying if he waits another year.

Q:  My husband has had a contractor’s license for over 20 years and I’d like to obtain my own license without having to take the test.  Is that possible?

A:  There are only a few circumstances that allow for you to waive the exams.  In your case, you wouldn’t be able to obtain your own license with a waiver, but it’s possible that you may qualify for a waiver of the exams if you wanted to replace your husband as the qualifying individual on his existing contractor’s license.  Contact my office and we can go over your experience to determine if you meet the requirements to request a waiver.

 

Stone Restoration Licensing, Well Drilling and Inactivating for Unsatisfied Judgements

While all contractors may find the work a ‘grind’ at times, yes, there is a license for that too! How long does it take to obtain a license to ‘sink’ wells in two states at once?  The ‘suspense’ is nail-biting, but the rules of licensing law won’t allow justice to be overcome by poor ‘judgment’…

Q:  I have been doing stone restoration for many years without a contractor’s license.  It has recently come up a few times that I should actually be licensed.  I did a little research on the CSLB’s website and I don’t see a classification that matches what I do.  I don’t install anything I just repair damaged stone countertops or other stone surfaces.  Basically when granite (or any other type of stone) is chipped or scratched, I will restore it by grinding it down to mask the chip, or polish it out to remove scratches.  What classification, if any, would fit for this type of work?

A:  If you are grinding the stone, you would need to have the “C-54” (Tile) classification. In order to obtain this license, you would need to pass both a law and trade exam.  If you are only polishing, buffing, and sealing the stone, a “C-61”/”D-64” (Non-Specialized) classification would be acceptable.  A Non-Specialized contractor “installs, modifies, maintains and repairs new products and/or new installations which are not defined in any section” of the Business and Professions Code (Contractors License Law).  The “C-61”/”D-64” classification does not have a trade exam, so only the law exam would be required.

Q:  We are a well drilling company based in Texas and we need to get licensed in California and Arizona.  What are the requirements and how quickly can this be done?

A:  Both California and Arizona require that you have an individual (employee or Officer) that can document at least four years of full time work experience in the well drilling trade.  That individual will need to pass a trade exam and a law exam in California administered by the CSLB.  The Arizona ROC requires that the person pass a Business/Management exam with PSI exams, as well as an exam administered by the Arizona Department of Water Resources.

The CSLB in California is currently expediting well drilling applications so the process will likely only take a couple of weeks, depending on fingerprinting.  The Arizona ROC processes applications in the order they receive them, and it typically takes between 2-3 months to obtain a license.

Contact our office to go over the additional requirements for obtaining a contractor’s license in California and Arizona.

Q:  My license was recently suspended because of an unsatisfied judgment.  I plan to take care of the this, but in the meantime, can I Inactivate my license so it doesn’t reflect a Suspended status?

A:  No, absolutely not, the CSLB will not let you Inactivate a license that wasSuspended due to an unsatisfied judgment.  The license will reflect the Suspension until you show proof that you have satisfied the judgment.

 

 

Multiple Signers, Fire Sprinkler Installation and Bona-Fide Officer/Employee Qualifiers

A corporate entity learns that ‘one for all, all for one’ may not be good license policy! We present a quality answer for a ‘qualifier’ question.  Unfortunately, even ‘sprinkles’ won’t sweeten the answer we have to serve for a General’s question…

Q:  We have a corporate license in California and the only person listed on the license is our RMO (Responsible Managing Officer).  He is our former CEO/President and he is technically still with the company but due to some internal disagreements he will soon be leaving.  We have changed the name of the company and also changed the Officers on file with the Secretary of State.  We failed to notify the CSLB of these changes as they are fairly recent, however our license is up for renewal at the end of next month.  The renewal requires the signature of our RMO on record, and because things have gone sour, he is refusing to sign.  He is also refusing to sign our name change request. What can be done about this and what kind of exposure does this put us under?

A:  Sorry to hear that there have been disagreements within your company, that is always a difficult thing to deal with in business.  You will want to file a Disassociation in order to remove him from the license, and at the same time file applications to update the new Officers.  Once the new Officers are added to the license, any of those individuals may sign the renewal and have signing authority to make changes to the license such as the name change.  When your current RMO is disassociated from the license, you have 90 days in which to replace him.

With regards to risk/exposure, any time you only have one individual listed on a license you need to be careful because that is the only person that has the authority to make changes to a license.  Worst case scenario, they can cancel the license!

Q:  I have an “A” (General Engineering) license and a friend of mine recently purchased a home and asked if I can install a fire sprinkler system in his home.  Am I permitted to do this with my “A” license?

A:  No, installing a fire sprinkler system in a residential home does not require any specialized engineering work in connection to a fixed works project, so your “A” license would not be appropriate.  A “C-16” (Fire Protection) contractor would need to install the system.  A “C-36” (Plumbing) contractor may also install residential fire sprinkler systems up until January 1, 2017 when that will no longer be applicable. There is potential to add a specialty class for these trades if your experience qualifies and you take the exam. Contact us with any further questions or assistance.

Q:  If I were to register a new entity and seek a contractor license for it, would the Qualifying Individual need to submit some sort of verification such as “W-9’s” or operating agreements showing them to be an employee or Officer of a company?  I’m wondering if our employees who qualify for a “B” license would be able to qualify for a subsidiary of ours if that company does not technically employ them.

A:  While the CSLB does require verification of employment upon application submittal, your RMO/RME is required to be a bona-fide Officer/employee of the entity for which he/she Qualifies.

 

Fencing Licenses & Limits, Electrical in NV, HIS Renewal and Inactive Fees

I will ‘fence’ with a General in battling our way to answers for our contractor readers. We ‘short shunt’ an electrical question about working in Nevada, but still can help make the ‘connection’. As we often advise here, an example of why keeping your address current with CSLB is important! …

Q:  In California, is a General Building “B” licensed contractor allowed to directly contract or subcontract for wood fencing construction and installation? The description for a General “B” scope of work does include carpentry, so I guess the question is wood fence installation considered carpentry work?

A:  A General Building contractor would not be permitted to take on a job that is strictly wood fencing.  General Building contractors must be performing at least two unrelated trades on the same job.  It would be somewhat of a gray area for a (“C-6”) Carpentry contractor to do wood fence installation.  The most appropriate classification for installing a wood fence would be “C-13” (fencing).

Q:  We are a “C-7” (Low Voltage) contractor in California and my boss wanted me to inquire to see if our license is valid in the State of Nevada?

A:  No, your California license is not valid in Nevada.  You would need to apply separately for a Nevada State Contractor’s License.  Electrical classifications are not included in the Reciprocal agreement between California and Nevada so your Qualifying individual would be required to take the trade and management exams.  Contact our office if you’d like assistance with the process.

 

Q:  I received a letter in the mail regarding the changes to the HIS (Home Improvement Salesperson) registration process.  I failed to notify the CSLB of my address change which is why it took so long for the letter to be forwarded.  Do I need to do anything or does my status just remain the same until my registration is up for renewal?

A:  Your status remains the same until renewal.  Prompted in part by the boom in the solar industry, as of January 1, 2016, the CSLB implemented a new process to simplify the process to a single registration, while still allowing the HIS to work for multiple licensed contractors.  There is a form that you will want to submit to update your address on file with the CSLB so that you continue to receive correspondence such as your renewal application.

 

The responsibility of notifying the CSLB of HIS employment now belongs to the licensed contractor.  Contractors employing HIS representatives are required to notify the CSLB in writing on the necessary form prior to employing the individual.  They also must notify the CSLB within 90 days after employment ceases. Keeping your address current is also good advice!

Q:  I received the application to renew my license which expires at the end of next month.  I went to work for another contractor so I’m going to pay the Inactive renewal fee since I’m not using my license right now.  Is the Inactive fee a one-time fee?  And what is the process to reactivate it when I want to in the future?

A:  You will be required to pay the Inactive renewal fee every two years.  In order to reactivate your license in the future, you would just need to request a reactivation form from the CSLB and pay the fee.  You will also need to meet the bond and insurance requirements at that time.

 

Stock & Asset Sales, Hydro-Excavation and Registered Agents Out of State

What we ‘know’ and what’s actually ‘correct’ don’t always jibe and for contractors that can be a problem. It’s why we answer questions here and have assisted contractors in Sacramento for more than 30 years in negotiating these complex rules. Have we not all ‘assumed’ something that turned out different then we believed it would? Here’s a couple of recent ‘real world’ examples…

Q:  We recently purchased a fencing company and the previous owner is going to remain working for us, however he will no longer be an Officer.  What is the proper form that we use to change him from an RMO (Responsible Managing Officer) to an RME (Responsible Managing Employee)?  I assume we can just take over the license and add our officers to the CSLB’s records.

A:  Not necessarily!  It all depends on whether the sale was a “stock” sale or an “asset” sale.  If the purchase was a stock sale, you can keep the same license and make the necessary changes to the license.   If the purchase was an asset sale, you will be required to form a new entity and obtain a new Contractor’s License.  Contact our office and we can provide you with the appropriate forms based on the conditions of the sale.

Q:  You helped us obtain a contractor’s license a couple years ago and we have a new entity that we’ve formed.  In doing a little research, our RME will not be able to Qualify both licenses because there is no common ownership.  Is it possible to have two entities operate under the same license?

A:  No, two separate entities cannot operate under the same license.  Your new entity will need to obtain its own license to bid or do contracting work.

Q:  We are a Texas-based company and we provide hydro-excavation services, which is the process of using high pressure streams of water or air to break up ground and excavate, while using a high air flow vacuum that sucks up the soil, debris, dirt, rock, etc., in order to allow a visual observation of the buried underground utilities or infrastructure.  We need to obtain a Contractor’s license for this work in California.  Is there a particular type of contractor’s license needed for hydro-excavation, or will any type of license do?  We have an employee with an inactive “B” General Building license.

A:  Thank you for contacting Capitol Services Inc.  The “C-12” (Earthwork and Paving) would be the appropriate license for hydro-excavation work.  However, if you are doing any utility-related work you would need to obtain an “A” (General Engineering) license.  A “B” General Building license would not be appropriate for this type of work.

Q:  I am a California contractor and I am going to apply for a Nevada license using reciprocity.  My agent told me that I’m required to have a Nevada address.  Is a PO Box sufficient?  I don’t want to have to open an office there.

A:  That’s actually not entirely correct.  You are required to have a Registered Agent in Nevada to accept court documents on your behalf if needed, but there are many companies that are in business to serve as your Registered Agent for a yearly fee.  Capitol Services provides that service here in California and you can contact our office if you need a recommendation for a company in Nevada.

Officer’s List, Applying Sealants and General Limits

Our first contractor gets a ‘green’ light before I take on a ‘bigger’ question from Texas! Yes. An answer that likely results in time off for another ‘contractor’. With a nod to our pending season for the ‘boys of summer’ Q/A with a Spring Training ‘pitch’…

Q:  I have formed a new corporation and we are in the process of applying for a new contractor’s license.  Do we need to list all of our Officers and Directors on the application/license?  Some of them are just investors and they don’t want to be associated with the license.

A:  Domestic California corporations are required to list their President, Secretary, and Treasurer on the application/license.  Foreign corporations (formed outside of California) are only required to list their President on the application.  Directors, Vice Presidents, or other “assistant” Officers are not required to be associated with the license for either foreign or domestic corporations. So, barring these ‘investors’ holding Executive posts, you are good to go.

Q:  Our company is based in Texas and has been in business in California for over 15 years. We apply sealants to floors in schools, hospitals, etc.  One of the school districts recently requested our contractor’s license number, which we’ve never had happen before.  We contacted the CSLB and we were informed that we needed to have a “C-61”/”D-12” (Synthetic Products) contractor license to perform this work.  We consider ourselves a “janitorial” service and therefore never knew we needed a license.  Since we have been in business for so long, can we continue doing business while we are in the process of obtaining a contractor’s license?  If not, we will have a staff of employees out of work for a period of time!

A:  I would never recommend doing contracting work without a license.  While it is understandable that you were unaware of the licensing requirements in California, contracting without a license can result in fines, misdemeanor charges, and possible jail time.  Not only that, but consumers are not required to pay a person for work done while not state licensed.

Q:  I have a General Building contractor’s license and I want to start up a separate painting business under a different name but under the same corporation.  How do I go about doing that?  Can I use the same license?

A:  In the terms of Spring Training baseball. Strike One. You cannot use the same license for a different business operating under a different name.  Additionally, General Building contractors cannot perform single specialty trades alone, for Strike Two.  General Building contractors are required to perform at least two unrelated trades on the same job, You’re Out! HOWEVER, if you have at least four years of full time work experience doing painting , within the last ten years, then you will likely qualify for a separate “C-33” (Painting) license.  If you want to operate under a separate name for your painting business, then you will need obtain a separate contractor’s license with the “C-33” (Painting) classification.  If you want to operate under a different name, you need to obtain a new license with a ‘dba’ (doing business as) name. Next batter up!

Graffiti, AZ General, Fingerprint Rule, Removing Artificial Turf and Reactivating A License

 

What type of contractor takes down ‘art’? I will remove some ‘artificial’ notions on ‘cutting’ turf, share some ‘ink’ on a fingerprint question. I also have the unfortunate duty to let a ‘former’ contractor know that too much time has passed to just ‘revive’ his license but his ‘number’ may not be gone…

Q:  Is a contractor’s license required for graffiti removal and if so, what type of license would I apply for?

A:  Yes, if the total contract amount is over $500, the “C-33” (Painting) classification would be the most appropriate for graffiti removal.

Q:  Is a contractor’s license needed for removing artificial turf from outdoor athletic fields?

A:  Yes, a contractor’s license is required.  Both the “C-61”/”D12” (Synthetic Products) or the “C-27” (Landscaping) classifications would be acceptable to remove artificial turf from athletic fields.

Q:  We have an application pending with the CSLB and all of the requirements have been met except for fingerprinting.  Our President travels frequently and it’s hard to lock him down to go get fingerprinted.  Is there a way for the CSLB to issue our Contractor’s License prior to completing fingerprints?

 

A:  No, the CSLB will not issue a Contractor’s License until all personnel listed on the application fulfill the fingerprinting requirement.  In addition, the fingerprints must “clear” both the Department Of Justice (DOJ) and the Federal Bureau of Investigation (FBI) before any license will be issued.

Q:  I previously held a Specialty contractor’s license that is currently “expired and not able to contract at this time”. I have now been working back in that same field for the past 4 yrs.  What is necessary to ‘reactivate’ that license number but place as Inactive for potential future use?

A:  I looked up your license and since it has been expired for over five years you will have to re-apply for a license.  You can however request that they issue your old Sole Owner license number back to you.  You will need to be able to document at least 4 years of full time work experience, within the last ten, in the Fencing trade.  You will also be required to take and pass the exams again.  Contact our office if you’d like assistance with this process.

Q:  I have an “A” (General Engineering) license in Arizona.  Am I permitted to perform electrical work with my “A”?

A:  The General Engineering classification in Arizona allows you to perform all scopes of work allowed by “CR-2” through “CR-80” classifications, so yes, you can perform “CR-11” (Electrical) work in Arizona with your “A” license.

IMPORTANT: For Contractors and Consumers!

In a recent press release, the CSLB reminds contractors and homeowners the risk of contracting, or hiring a contractor, who does not carry the proper Worker’s Compensation for employees who are working on a job.  CSLB investigators recently set up several sting operations with various cities throughout California, in which they cited multiple contractors for not having Worker’s Comp insurance for the individuals working with them.  CSLB Registrar Cindi Christenson said “Not only is the illegal operator liable, the homeowner also could be on the hook for medical costs for an accident on their property.”

Additional citations were also issued for illegal advertising, requiring excessive down payments before starting work, and contracting without a license.