Posts Tagged ‘California’

California Contractors Need Workers Compensation Insurance, or else…

On February 10, 2012 Author By Seth Smiley        

One of my favorite places to find good content and expert opinion regarding construction and legal issues is JDSupra.com. This is a service whereby bloggers and others can post content and it is marketed by JDSupra. In one of JD’s tweets last week I discovered a very informative article by Matthew Hicks regarding Workers’ Compensation Insurance law and jurisprudence in California.

Hicks sites two landmark cases, Wright v. Isaak, 149 Cal.App.4th 1116 (2007) and Loranger v. Jones, 184 Cal.App.4th 847 (2010). See Hicks article for the in depth analysis of these cases. The bottom line here is that all California contractors need to be sure to maintain proper and adequate workers compensation insurance.

The main statutory component of Hicks article and the source of Workers Compensation law in California come from California Business and Professions Code §7125.2 which states in pertinent part:

“The failure of a licensee to obtain or maintain workers’ compensation insurance coverage, if required under this chapter, shall result in the automatic suspension of the license by operation of law in accordance with the provisions of this section…”

The key elements here are 1) obtain or maintain, basically saying that the contractor has a duty to get it and then a duty to keep up the correct amount of insurance. The other important element quoted above is 2) the fact that the suspension of the license occurs by “operation of law,” meaning that you do not have to be caught and if/when a contractor is caught without or under insured, the suspension of the license will have automatically happen retroactive to the date of insufficient coverage. Needless to say, this is pretty powerful language.

Just as Hicks points out in his well written-piece, contractors need to abide by and closely adhere to the requirements for Workers Compensation insurance. This can be complicated and contractors should get legal advise when making such decisions.

For further reading see Wesley E. Meyers article here.

Posted in:     California, Construction News, Insurance, Licensing  /  Tags: , ,   /   Leave a comment

California’s Contractors State Licensing Board – Very Useful Tool

On July 12, 2011 Author By Seth Smiley        

The Wolfe Law Group, LLC (WLG), has two attorneys (Scott G. Wolfe, Jr., and Seth J. Smiley) that are barred in the state of California. As a California attorney, I want to share some of the excellent resources available to contractors through the licensing board.

California has over 300,000 licensed contractors, all of which had to be licensed through the state licensing board. Many contractors do not know all the resources which this arm of the Department of Consumer Affairs makes available to contractors and the public. Some of the more popular features include:

For the consumer there are tutorials on hiring a licensed contractor, knowing the risks of being an owner/builder, filing complaints, legal issues for construction consumers. California CSLB is also very proud of its SWIFT program. SWIFT stands for Statewide Investigative Fraud Team, where the government performs sting operations to catch unlicensed contractors. This team plays the double roll of protecting the consumers from unlicensed contractors, but it also protects those contractors who are playing by the rules from having business stolen from them by their unlicensed counterparts.

For contractors there are links to leading industry bulletins, the very helpful “Contractors Guide to Licensing” which after taking a look is very informative for all contractors, big or small, in educating them on the licensing process. There are also other links regarding out-of-state contractors obtaining reciprocity.

The hearty list of online services offered by CSLB includes, checking on a license, filing a complaint, the full database of all licensed contractors, processing times, searches for surety bond companies and workers comp insurance companies.

I found that the email alerts are very helpful on keeping up with current events and breaking news. Much of the news thus far has been updates on unlicensed contractors who have been caught by the SWIFT program.

As always seek the advice of legal counsel when contemplating licensing, contracting, and negotiating. The California Contractors State Licensing Board has a very top notch site dedicated to aid both the consumer and its professional contractors. This resource should not be overlooked when deciding to get your license or maintaining it. The attorneys at Wolfe Law Group, LLC are experienced in all areas of construction law including contractor licensing.

Posted in:     Construction News, Law Changes & Updates, Licensing  /  Tags: , ,   /   Leave a comment

Your Mechanics Lien Resource Treasure Trove

On June 23, 2011 Author By Scott Wolfe Jr        

Mechanics Liens used to be a cornerstone topic on this blog; meaning I would write an article about filings, foreclosing and/or litigating a mechanics lien quite frequently. In fact, over the years I sort of consider myself a “lien guy.”  Insofar as construction law goes, mechanic lien and state or federal bond claims has sort of become my thing.

So, where has all of the mechanic lien posts gone?!

If you’re a reader of this blog but not my other blog – The Construction Lien Blog – you may be wondering.  But as you can gather from the blog’s title, a few years ago I created a separate blog focused on lien issues across the country, and post very regularly there on the topic.

As I exhaust the subject on that blog, and don’t to duplicate postings from there over here, most of my mechanic lien and bond claim talk is done on the Construction Lien Blog.  So, if you’re interest in lien laws (and if you are a construction participant or construction law person, lien laws are super important), I recommend you take a look at this other blog.

To give you a more direct path to relevant information, here are the articles posted on the construction lien laws in the states where Wolfe Law Group practices.

Also, be sure to check out these other resources providing through the lien and notice preparation and management company I founded in 2007, Zlien:

Posted in:     Around The Web, From The Experts, Mechanics Lien, Miller Act Claims, State Bond Claims  /  Tags: , , , , , , ,   /   2 Comments

Good and Bad News Regarding California Public Construction Projects

On January 19, 2009 Author By Scott Wolfe Jr        

Last month, we reported problems in California where the government’s spending freeze affected thousands of public construction projects, and an enormous amount of contractors and laborers.  Today, the San Francisco Chronicle has mixed news regarding this problem – as California is pumping money to salvage some of these projects, but more money is still needed.

The article states that 276 of the problem projects will be allowed to continue work (for now), because “shutting them down  would cost more than it would take to complete the jobs.”

But the problem is far from over, as the article goes on to warn:

But state officials warned that if the governor and the Legislature are unable to find a solution to California’s $42 billion budget deficit by the end of this month, the remainder of the work could end.

A full list of the affected projects can be read here:

http://www.signonsandiego.com/news/state/images/081217pmib_impact.pdf

If you and your company are working on a public project affected by this spending freeze, you will want to file a Stop Notice to preserve your rights to Get Paid for work performed.

Posted in:     Construction News  /  Tags: ,   /   Leave a comment

An Owner’s Perspective on Liens

On January 3, 2009 Author By Scott Wolfe Jr        

We frequently post about construction liens from a contractor’s perspective – who are clearly interested in figuring out ways to qualify for the filing of a lien.

What we rarely comment upon is an owner’s perspective, who are concerned with the opposite:  figuring out ways to condemn a lien as improperly filed.

It’s important for those who usually file mechanic’s liens to step back and consider the opposing viewpoint.   There is some value in understanding that upon receipt of a lien, an owner’s will likely have the instinct of wanting to fight it as improper or unfair.

When lien laws are drafted, they are drafted with protection for property owners in mind.  And when contractor boards and other regulatory agencies commit time to lien laws, they are usually focusing on educating the public (i.e. property owners) on what they can do to prevent liens.

A December 2008 article from the Daily Journal of Commerce in Portland, Oregon, stands as an example of this.  In the article titled “Five Questions to Ask About Liens,” the author goes through five questions owners should ask when faced with mechanic’s liens to determine their rights on proceeding forward.

This is not a rare example.   To the contrary, regulatory agencies across the nation who regulate contractors focus a great deal of effort on helping owners understand and overcome improperly filed construction liens.  See the page for Department of Labor & Industries in Washington, or the Contractors State Licensing Board in California.

If your company does wind up filing an improper mechanic’s lien and its disputed by the property owner, a loss in court could require your company to pay penalties, attorneys fees and more.

The point?   It’s important to understand the lien laws in your jurisdiction, and avoid making common errors and mistakes.

Andrea Goldman, a construction attorney in Massachusetts, publishes a great blog about this very issue titled:  Home Contractor v. Homeowner.  She frequently posts on issues that surface in home construction between the property owner and contract that results in litigation or arbitration.

With all of the work across the nation from regulatory agencies attempting to stifle improperly filed mechanics liens, Andrea notes in her blog that mechanic’s liens are so powerful of a collection tool for contractors that even an improperly filed lien can yield non-payment.

In her post the “Strength of Mechanic’s Liens,” Andrea states as follows:

Even if the lien is not done properly, one still has to file an action in court to dissolve it, which requires paying legal fees that are frequently not recoverable.

And regardless of your position on the subject (as a property owner, contractor or regulatory board), and regardless of how right or wrong your position may be, Andrea’s point is clear.   Mechanic’s liens are powerful instruments, and even when they are filed with technical defects, they cause parties to consider the debtor’s claim and contemplate a resolution.

Posted in:     Mechanics Lien  /  Tags: , , , , , , , , , , ,   /   Leave a comment
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