Legal Question in Construction Law in California
My husband is a handyman in California. He does not have a contractor's license. One of his clients asked him to put walls up on a freestanding carport. She had plans which were approved by county. She said she would be the "owner/contractor" and pay him hourly wage. He put in a bunch of weeks, passed all county inspections. The last week she said she ran out of money and couldn't pay him so she postdated the check to February. Then she cancelled the check he had already deposited causing bank fees. My husband sent her a "demand" letter indicating that she owed him about $1,000 and that she should pay or he would sue. Now she has brought suit against him requesting repayment for every penny she gave him based on the fact that he didn't have a contractor�s license. Her lawyer cited Bus and Prof Code 7031. It looks like my husband was acting unlawfully, and we have to pay her almost $5,ooo on top of the $1,000 loss. Am I interpreting this correctly? I can't believe that she would get all his labor for free. We didn't know about this "law". Amazed, please help.
2 Answers from Attorneys
There are exceptions to the unlicensed contractor statute. One is if you are an employee for an owner/builder. If your husband was working on an hourly basis and she represented to him that he would be her employee, then it is likely that he is entitled to every penny for his hourly work. There are different criteria to determine whether one is an employee rather than a contractor, but a very important consideration is whether your husband was working hourly or gave a bid. Other factors are if the owner controlled the work, the hours, provided tools, etc. No one factor is dispositive, but the hourly issue is often considered very important. It is vitally important that he make it clear that he was an hourly worker and was considered an employee. As a handyman, he can't do any jobs over a certain limit without a license and it appears that he understood this so he only agreed to do the work after she agreed to have him be an employee. Again, it is vital he make it clear to everyone that both agreed that he would be an employee and work for an hourly wage. Have him file a complaint with the Department of Fair Employment and Housing right away for back wages.
I agree with Mr. Redenbacher. Anything in the time reporting, or how the checks to him are written, or anything else, that makes this look like an employer/employee situation will be helpful. My only disagreement is about the name of the state agency where your husband should complain about the bounced paycheck, etc. ...... I think it is the California Labor Commission. 411 E. Canon Perdido, Room 3, Santa Barbara, CA 93101. The telephone number of the Santa Barbara Labor Board's office is (805) 568-1222.