EmploymentQuestion 1619 of 1632

A general contractor engages an unlicensed handyman to hang drywall under a written subcontract. The handyman supplies his own tools, sets his own rates, and runs the work from his own shop. How does California classify him?

a.An employee, because Labor Code §2750.5 makes a valid licence a condition of contractor status
b.An independent contractor, because he has a written subcontract, his own tools and his own rates
c.An independent contractor, under the §2781 construction-subcontractor route out of the ABC test
d.An employee, unless the general contractor signs a written waiver of the licensing requirement

Explanation

Drywall work requires a licence, and Labor Code §2750.5 makes holding a valid contractor's licence a condition of having independent-contractor status wherever the work requires one. So the analysis stops there: the handyman is the general contractor's employee for wage, workers' compensation and payroll purposes. The §2781 route out of the ABC test does not help either, because its very first criterion is that the subcontractor is licensed by CSLB for the scope of work. Tools and rates belong to the §2776 business-to-business checklist and cannot substitute for a licence.

Law Reference: Labor Code §2750.5; Labor Code §2781

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