EmploymentQuestion 1004 of 1605
A licensed general contractor hires an unlicensed subcontractor who brings his own crew but carries no workers' compensation insurance. If one of that crew is injured, who is most likely liable to provide workers' compensation benefits?
a.No one, because the injured person worked for the sub
b.The injured worker, who assumed the risk
c.The general contractor, because the unlicensed sub and its workers are treated as the general contractor's employees
d.The state uninsured employers fund, with no recourse to the contractor
Explanation
Under Labor Code §2750.5, a person performing work requiring a contractor's license who is unlicensed is presumed to be an employee, not an independent contractor. Combined with §3357, the unlicensed sub's workers are deemed employees of the hiring general contractor, who then bears the workers' compensation liability for their injuries.
Law Reference: Labor Code §2750.5; §3357Practice all 1605 questions free — no signup required.
Related questions on this topic
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- What happens to a contractor's license if the required workers' compensation coverage lapses and no exemption is on file?
- The single most effective way for a general contractor to avoid becoming liable for a subcontractor's injured workers is to:
- After an employee reports a work-related injury, how quickly must the employer generally provide the employee with a workers' compensation claim form (DWC-1)?
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)