If you find out that your contractor had the wrong license (specialty) and so did not have a valid license, was he an employee?
It turns out that my contractor who did my electrical work only had a plumbing license.
This was a 5000 dollar contract.
This was done more than 4 years ago.
After I asked for a repair, I found this out.
I understand the ramifications of my being able to get my money back but I think I am liable for the EDD and other taxes because now that I know he did not have a "valid contractors" license, he was my employee based on labor code 2750.5.
I did not know he was not validly licensed at the time. Is there a way out of this or do I have to pay the EDD stuff?
Nathan’s Answer
There are many factors you'd want to go over with a licensed attorney.
Did this individual use his own tools, or did you supply them?
Did he have a business card or operate out of his own company?
Did you pay a set amount per hour/per day or did you pay by the job completed?
Did you tell this person when to come and leave specifically, or did this person take as much time as they needed to do the job without you interfering?
Most likely they were a contractor - responsible for their own taxes, that's a reason they're called contractors to begin with, they come in for a job, and leave. They are not employees. However, if this contractor somehow became an employee (it can happen) you may have to answer to the Department of Labor Standards Enforcement and a judge will determine what happened there.
DLSE judgments can be appealed to the Superior Court, much like small claims matters.