565 4th St. Construction Gives Rise to Suit

SAN FRANCISCO, CA – The Hair Shop, LLC is the plaintiff in a lawsuit against Shun Construction, Inc. and Patrick Lin. The core of the beef is that the defendants failed to improve the space as promised, but the killer allegation, if true, is that Shun Construction was not licensed at the time the work was being done.

The Business and Professions Code says that one need not pay for work done by unlicensed contractors. It doesn’t matter if you know that they are unlicensed. You can hire an unlicensed person and not pay them and/or get your money back.

This seems unfair to unlicensed contractors who do good work but the Legislature thinks rewarding licensed contractors and punishing unlicensed ones is more important.

Hiring unlicensed contractors is not without risk, however. Not only are unlicensed contractors unable to secure proper permits, they can also get injured and/or otherwise claim that they are your employee. Labor Code section 2750.5 makes unlicensed workers your employees for all purposes. To make things even more complicated, employees are exempt from the Business and Professions Code licensing requirements. Case law discussing both regulatory schemes, subcontractor’s and subcontractor’s workers complicate matters further.

This blog reports on cases filed in and around the San Francisco Bay Area. The statements made are based on the allegations in court-filed documents. Allegations are just accusations, and may or may not be true.
The authors of the blog are attorneys at the San Francisco litigation firm, Wood Robbins, LLP. If you have a legal issue, send them an email. If they cannot help you, they will try and point you in the right direction.


Categories: Commercial

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