Insurance & LiensQuestion 466 of 1605

A general contractor hires an unlicensed "subcontractor" who brings their own crew to the job site. If one of that crew is injured, who is most likely treated as the employer for workers' compensation purposes?

a.No one; unlicensed crews have no workers' compensation rights
b.The injured worker, who must self-insure
c.The general contractor, because the unlicensed person is deemed an employee
d.The property owner, in every case

Explanation

Under Labor Code §2750.5, a person performing work requiring a contractor's license without one is presumed to be an employee, not an independent contractor. The general contractor can therefore be liable as the employer for the unlicensed sub and its workers.

Law Reference: Labor Code §2750.5

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Reviewed by Abraham Chen Licensed California General Contractor (CSLB License #1101856 verify)
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