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Subcontract Liablity Archives

California Appellate Court Holds That A General Contractor is Responsible for Paying Its Unlicensed Subcontractors Employees Wages

In a case entitled Sanders Construction Co. Inc. v. Cerda (June 2009), a California Appellate Court held that the employees of an unlicensed subcontractor are "statutory employees" of the general contractor. As a result, the general contractor was liable for the unpaid wages that were due to the unlicensed subcontractors employees.

Legislation is being proposed to ensure fairness in indemnity agreements

California State Senator Noreen Evans is sponsoring Senate Bill 474 which seeks to treat private owners and developers in the same way that current law treats public entities by preventing them from requiring others to indemnify them against their active negligence. Generally speaking, active negligence includes negligent acts and omissions of a person as opposed to negligence imposed that person for failing to act, such as failing to inspect a work site for safety violations.

California Appellate Court Holds That A General Contractor is Responsible for Paying Its Unlicensed Subcontractors Employees Wages

In a case entitled Sanders Construction Co. Inc. v. Cerda (June 2009), a California Appellate Court held that the employees of an unlicensed subcontractor are "statutory employees" of the general contractor. As a result, the general contractor was liable for the unpaid wages that were due to the unlicensed subcontractors employees.

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