Professional Contractors Join Forces With Contractors State License Board to Crack Down on Flagrant Violators

SACRAMENTO, Calif., Jan. 20, 2011 /PRNewswire/ -- The Contractors State License Board (CSLB), pursuant to Senate Bill 1254, is authorized to issue a cease and desist order as well as suspend the license of any licensed contractor failing to obtain workers' compensation for employees.  The California Professional Association of Specialty Contractors (CALPASC) is working closely with the CSLB by calling upon trade contractors to identify key builders, owners and general contractor personnel who might benefit from receiving a letter from the CSLB.

"CALPASC is working diligently with state departments and agencies, such as the CSLB, to increase the awareness of builders, owners and general contractors about the risks of hiring illegitimate low-bid subcontractors," said Brad Diede, chief executive officer of CALPASC. "We are concerned that some general contractors, builders and subcontractors are choosing to engage in dishonest business relationships, including not obtaining workers' compensation insurance and underreporting employees and cash payments.  Subcontractors who opt to participate in these practices submit low bids that don't cover primary wages or workers' compensation costs and ultimately cost the state."

According to David Fogt, chief, CSLB Enforcement Division, "We are putting contractors on notice and will be aggressively enforcing these laws. The CSLB will be sending a letter advising prime contractors of their responsibilities under Labor Code Section 2810 and the new enforcement procedures under SB 1254.  If we find uninsured employers, a stop work order will be issued to the employer, and employees will be required to leave the project with entitlement to 10 days pay.  In addition, the contractor may face legal action, including steep fines and possible suspension of the contractor's license."

This action by the CSLB comes just a few months after the California Division of Labor Standards Enforcement visited 305 construction sites in 22 California counties and found 78 to be out of compliance by not offering workers' compensation coverage. Work on the sites was immediately halted until proof of coverage was provided, and employers were fined.

In 2010, CALPASC initiated the LEVEL Program, a comprehensive enforcement campaign designed to work with state agencies in apprehending flagrant violators.  

The California Professional Association of Specialty Contractors is a nonprofit 501(c)6 trade association advocating on behalf of trade contractors and suppliers of building materials in California.  CALPASC is committed to educating members on complex issues and advancing safety and compliance within the building industry.

www.calpasc.org

SOURCE California Professional Association of Specialty Contractors