I’ve been a licensed contractor for over two years now and have been running my own business for a little over a year. However, I’ve been involved in the trades for over 13 years.
So, every once and a while I’ll do work for past employers or even get subbed work from a previous employer (or other contractors in general).
The other day I applied for a company that posted on craigslist and I received a phone call back. The owner/manager wanted to meet up and do an interview. Everything went fine, but I’m looking for a few answers about the legality of the business structure and if there are any guys on here that have worked for this company.
To sum it up, Handyman Connection is a licensed, bonded and insured company, that has national marking and recognition; regardless of how bad the reviews are.
Here’s where I’m concerned about the legal aspect from what they’ve told me:
1. I will be paid on a 1099, however I am not a ‘sub’ and I am working under their license.
If I’m not mistaken, a 1099 is a legal ‘independent contractor’ and in California must be licensed and or work under that license?
2. I will be covered under their workers compensation and general liability insurance.
As in the first question, since I’m an ‘independent contractor’ under a 1099, can I even be covered under their insurances and are they just saying that to get me onboard?
3. I am to pay for all materials myself, then get reimbursed from the company after progress payments have been submitted to the company from the client to me to the company. Or that the customer is to pay for all materials up front by purchasing them because I would be responsible for cost of materials if the company is not paid.
This is extremely weird to me because of the $1k or 10% rule, also if I’m classified as an employee I’m not responsible for the companies loss. Furthermore, if I’m a contractor, and I’m being subbed out, according to CA CLSB law, I should be entitled to lien rights, right?
4. Since I am a licensed contractor, with a growing customer base and clean record, could my license or credentials be damaged because of the practice of this company if anything goes wrong and I’m on a 1099?
For example, if I remodel a bathroom, and later it’s revealed that the shower’s pan leaked and caused structural damage to the building, am I responsible?
Even worse, since I’m licensed and this company gets busted for doing something illegal, and I went along with it, can my license be at jeopardy?
Here’s the situation, the pay isn’t bad. It isn’t that good when you factor in all the information above, but it’s still pay and I’ll take work on the down time, in-between, projects anyhow.
Any ideas?
So, every once and a while I’ll do work for past employers or even get subbed work from a previous employer (or other contractors in general).
The other day I applied for a company that posted on craigslist and I received a phone call back. The owner/manager wanted to meet up and do an interview. Everything went fine, but I’m looking for a few answers about the legality of the business structure and if there are any guys on here that have worked for this company.
To sum it up, Handyman Connection is a licensed, bonded and insured company, that has national marking and recognition; regardless of how bad the reviews are.
Here’s where I’m concerned about the legal aspect from what they’ve told me:
1. I will be paid on a 1099, however I am not a ‘sub’ and I am working under their license.
If I’m not mistaken, a 1099 is a legal ‘independent contractor’ and in California must be licensed and or work under that license?
2. I will be covered under their workers compensation and general liability insurance.
As in the first question, since I’m an ‘independent contractor’ under a 1099, can I even be covered under their insurances and are they just saying that to get me onboard?
3. I am to pay for all materials myself, then get reimbursed from the company after progress payments have been submitted to the company from the client to me to the company. Or that the customer is to pay for all materials up front by purchasing them because I would be responsible for cost of materials if the company is not paid.
This is extremely weird to me because of the $1k or 10% rule, also if I’m classified as an employee I’m not responsible for the companies loss. Furthermore, if I’m a contractor, and I’m being subbed out, according to CA CLSB law, I should be entitled to lien rights, right?
4. Since I am a licensed contractor, with a growing customer base and clean record, could my license or credentials be damaged because of the practice of this company if anything goes wrong and I’m on a 1099?
For example, if I remodel a bathroom, and later it’s revealed that the shower’s pan leaked and caused structural damage to the building, am I responsible?
Even worse, since I’m licensed and this company gets busted for doing something illegal, and I went along with it, can my license be at jeopardy?
Here’s the situation, the pay isn’t bad. It isn’t that good when you factor in all the information above, but it’s still pay and I’ll take work on the down time, in-between, projects anyhow.
Any ideas?