Legal Question in Business Law in California
Contractor License
Hi,
Recently, I met someone who is using his brother contractor license and got hired by a company as a contractor. Is that legal?
Also, is it possible to get a contractor license and then hire someone as not an employee? If yes, how does it work?
3 Answers from Attorneys
Re: Contractor License
No that's not legal. That would circumvent the whole purpose of licensing. That may also subject the folks involved to criminal charges. Only the licensed individual or company can use the license.
Re: Contractor License
No, a license is for the qualified and certified individual's use, not others, whether they be related or not. Just like with an attorney license, it is NOT transferrable to others period.
As far as hiring goes, your question is a bit vague. If you want to clarify what exactly you mean, contact us today.
Re: Contractor License
We sometimes hear "I'm not a licensed contractor, but I'm working under my brother's license" or words to the same effect.
This may or may not be a lawful arrangement.
The licensing laws obviously allow corporations and partnerships to hold contractor licenses, and for licensees who are sole proprietors to have employees. In such situations, persons who don't hold licenses personally, but who are partners, officers or employees, may do the work.
In addition, a corporate licensee is required to have a responsible managing officer or employee who holds a license.
In addition to the license requirements, there are bond requirements that specify who must post a bond, how large it must be, and who is and is not covered by a particular bond. There's also a workers' comp insurance requirement.
I would say that someone who is neither licensed nor an insured employee of a licensee, nor an officer or bona fide partner of a licensee, is probably unlicensed and ineligible to do work for which a license is required. A contractor cannot extend the umbrella of his license by lending, leasing or contracting it out; it is a personal privilege.
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