hire unlicensed contractors, they could be liable for wage and hour claims filed
by employees of the contractor.
In a 2009 case involving a general contractor
and its subcontractors, associations who hire unlicensed contractors can be
deemed a "general contractor" and the unlicensed contractors as "subcontractors." This
means that any unpaid workers will be considered employees of
the association and the association will be liable for paying those workers,
even it the association already paid the contractor. (Sanders Construction v. Cerda
. Boards should verify each contractor's license with the Contractors State License Board
. In addition it should get proof of insurance
. Boards should also add a provision to their contracts
requiring contractors to indemnify the association for any wage and hour
claims by its employees.
: Associations needing legal assistance can contact us
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