Legal Question in Construction Law in California

I am not an expert in this field, but I do not believe there is such a thing as a "piece worker" in California construction. You are either a licensed contractor, in which case you are the prime contractor or a sub-contractor for a particular job, or you are an employee of the prime or sub-contractor. Contractors cannot hire "piece-workers" to get around the requirement to carry workman's compensation insurance, and to pay employment payroll taxes.

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Well it's pretty simple. If they are not employees, they have to be licensed but you don't have to carry workers comp on them. If they are employees, they don't have to be licensed, but you have to carry workers comp on them. Also, if they are not licensed, you are almost certain to be held to the standard that they are employees, especially for workers comp.

"Piece workers" may exist in California construction, but not as a separate category for determining whether they must be licensed or whether they must be covered by workers' comp, either on their own initiative or by an employer.

Anyone working on a construction project is, for purposes of the law, either a contractor, a subcontractor, an employee, or exempt. Exemption is from the licensing requirements only, and is available only when they make less than $500.

All workers need to be covered by worker's comp., except that the owners of contracting companies can, in some cases, elect to be self-insuraing. Whether the worker provides his own coverage or it is provided by his employer can be the subject of private negotiation between them. The average worker should not be expected to provide coverage at his own expense, but it occasionally occurs.