Hiring without a contractor's license
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Operating as an unlicensed contractor and hiring an unlicensed contractor is illegal in California and both parties may be liable in certain situations.
In California, Business and Professions Code (Business and Professions Code) 7028 BP states that anyone who works as a contractor without a license from the State Contractors Licensing Board (CSLB); operates as a contractor with a license suspended for failure to pay a civil penalty; or fails to comply with a correction order, you are committing a crime.
This State also considers a contractor as the same as a builder and is the one who performs: constructions, modifications, repairs, additions or subtractions, improvements, removals, fixes disasters and demolitions (buildings, excavations and others).
Some examples of jobs as a contractor without a license are: a person who agrees to work on their neighbor’s house without having a license; the owner of a contracting business making new contracts even though their license is suspended; someone starts a business, doesn’t have a contractor’s license, and signs a contract to build something.
Exceptions when a licensed contractor is needed
Jobs costing less than $500 in materials and labor do not require a licensed contractor, however, it is in the homeowner’s best interest to hire a licensed contractor, regardless of the price of the work to be performed.
Additionally, any construction, improvements, repairs, and alterations made to personal property, such as computers and televisions, do not require a licensed contractor.
The law also does not cover the installation of finished products, materials or merchandise that are not part of the fixed home. This is why cabinet or flooring providers do not need a license, but installers do.
Legal defense after being accused of hiring without a contractor’s license
California state authorities often conduct operations to capture unlicensed contractors, such as construction bidders or handymen, and then arrest anyone without a license or requesting more than $500.
If you are an unlicensed contractor and you were caught, then you will likely be charged under BP 7028. However, you can challenge the charge by raising a legal defense. Done correctly, a good defense can often reduce or dismiss a charge, and the best way to do this is by hiring a criminal defense attorney.
The most common defenses used for the BP 7028 allegations are: you are not a contractor; small job exemption; the person is an employee.
Some of the penalties for a case like the one described, which is considered a misdemeanor, that could be awarded if convicted are: imprisonment in the county jail for up to six months; or a fine of $5,000. Repeat offenders are subject to larger fines and more prison time.
Felony charges could result if the contractor is caught using someone else’s license when bidding or performing work. This person could also face additional identity theft charges if the contractor has been using someone else’s license without the other’s knowledge.
Also, it is important to note that if a contractor’s license is not obtained, the contractor may not be able to collect money owed to him. In other words, if you hired someone without a license, you are not required to pay them and they can’t do anything about it. In addition, the homeowner has the right to sue for any or all of the payments made.
Homeowners are not blameless
Hiring an unlicensed contractor may be cheaper than a licensed contractor, but be careful! Doing so could also have legal consequences for you.
Since unlicensed contractors cannot obtain legal permits to do certain types of work, your home could lose value later if you try to sell it, since you need to disclose this information to potential buyers. If you do not disclose the information, you could be held liable if the work done illegally later does not meet code requirements.
However, the biggest risk is liability, which is something unlicensed contractors don’t have. If he or she turns out to be injured on the job, you, as the homeowner, have to take responsibility for the damages as there would be no liability insurance to turn to.
There have been situations where we represent non-citizens who have been charged with these crimes. While these violations do not normally result in inadmissibility or removal from the US, many times the judge, as part of sentencing, may require the client to be admitted to a local jail for a process known as “reserve and release”. ”. This could scare undocumented clients out of fear that their presence in a criminal jail could alert immigration authorities to their illegal status in the United States.
At Kannan Law, we have extensive experience practicing criminal defense and immigration law. As a result of this, we are always aware of the immigration concerns of our non-US citizens in their criminal cases.
Are you being accused of hiring an unlicensed contractor or operating as an unlicensed contractor? Contact us at Kannan Law, we will be happy to assist you in your defense.