If your worker ‘subverts’ the truth about his licensing are you ‘generally’ in trouble? I prevent an ‘alteration’ that would get a contractor nothing but ‘rejection’… 

Q: Does California have a requirement for General Contractors to ensure subcontractor licensing? We’ve recently become aware that a handful of states (Arkansas, Louisiana, etc.) have specific penalties against GC’s who hire subs who turn out to be unlicensed—I’m wondering if California does as well.

A: The CSLB would certainly frown on General Contractors who hire an unlicensed subcontractor however I am unable to find an actual “law” in the regulations that requires that they must ensure a subcontractor is licensed. 

You could argue if a General does hire an unlicensed subcontractor for work which requires a license, technically that “subcontractor” is now the General Contractor’s employee. The CSLB also has the authority to cite the “subcontractor” for doing contracting work without a license. I don’t see that the General Contractor would receive any specific penalty besides the liability that comes with hiring unlicensed contractors, but bottom line, hiring unlicensed contractors/subcontractors is not a good idea!

Q: We received our Contractor’s License renewal in the mail and I’m realizing that the Officers listed on the license are not completely accurate. Two of the individuals have left the company and have been replaced. Is it okay to strike out two of the names showing on the form?

A: No, the CSLB will reject the renewal if you alter it. You will need to file disassociation notices for the two people who are no longer with the company. If you want to list the new people on the license, you will want to file Applications for Adding Personnel.

Q: We recently applied for a new license using the same Qualifier as our subsidiary based on 7068.1. They sent us a “rejection” letter stating we needed to provide an organizational chart, with several requirements including personnel, ownership percentages, signatures, etc. Is all of that really required? Because we don’t usually provide detailed org charts like this with Officers signing off on it. Are you able to provide me with the section of the law that requires this, only because I know my boss will ask for it for his review? 

A: Yes, it is required to provide an organizational chart when you are requesting to use the same Qualifier on multiple licenses based on B&P Code 7068.1(2). I had to inquire with the CSLB to see which code/law requires this and was informed it is CA Code of Regulations 816(c).

Q: I am a General Contractor and I purchase cabinets from a “one-manshow” company. He is a supplier and doesn’t do any installations, he leaves that up to me. H e recently purchased a skid steer tractor that he uses to mow down weeds, grind out old stumps, and do some minor grading. He does this for homeowners that are trying to keep weeds down to protect against fires. Does he need a specific classification or license to work done? 

A: Good question and we all appreciate the effort to prevent anymore disasters in California! As long as the method used to clear the brush does not alter the grade of the land, a Contractor’s license is not required. If they are performing grading and the cost of the project is $500 or more, a Contractor’s license is required. The “C-12” (Earthwork and Paving) classification would be the most appropriate. If the cost of a stump grinding project is $500 or more, a Contractor’s license is required. In that case, the most appropriate classification is the “D49” (Tree Service) classification. Have him contact us if he needs to obtain a license! 

It’s great to see the work of the CSLB SWIFT enforcement teams get front page coverage in the Sacramento area’s Messenger Publishing newspapers and websites. Unlicensed activity just hurts everyone, a harm to consumers and a foul for licensed contractors.

According to the CSLB story in the Carmichael Times and other community editions, 13 were nabbed by SWIFT in an operation in the Gold River suburbs of Sacramento. A repeat offender was among those caught in the home improvements ‘bid’ sting conducted with the Rancho Cordova Police Department. 

By Shauna Krause, President, Capitol Services, Inc. www.cutredtape.com