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Is a builder an employee or independent contractor?

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Keshakot

Junior Member
Claim: A builder in California is claiming that he was my employee and I underpaid his wages ($5,000.00)
He also wants me to pay penalty of $252.00 per day for 30 days, that equals $7560.00
I was called for a conference with the California Labor State Commissioner

Summary of the situation
-- I had a verbal agreement (based on time and materials) with a builder to remodel the deck to my house in California.
-- This person has solicited himself to me as an individual contractor – he presented his business card stating that he provides construction services
-- His phone that he gave me, has a voice message the states: "Builder’s name construction ".
-- Apparently this person does not have a contractor's license
-- He was in charge of his own time and schedule. He used his own tools of trade and hired and paid to his helpers.
-- He charged me per hour and had a detailed daily journal when he put his hours and job description
-- He prepared a detailed schedule of work and was paid consulting fee for making the schedule
-- I trusted him with my credit in the local hardware store where he was buying all materials for the job he needed.
-- I did not have construction expertise to supervise this person. I'm a software designer working full time. I was working at my company office in 50 miles away from my home while this person was remodeling my deck in my house.
-- I paid him 175% over the originally estimated labor cost. Payment was done by my personal checks on about biweekly bases.
-- He deliberately left the job unfinished.
-- Since he left the job unfinished, I did not pay for his last two weeks of work.
-- This person filed a claim in State Labor Commissioner office Division of Labor Standards enforcement. claiming that he was my employee. He is claiming more than $5000.00 underpaid wages and $7500.00 penalty

Questions:
-- Does a person that was rebuilding my deck have legal bases to claim that he was my employee? Does hourly pay transition this person to employee status?
-- If he is not employee, is it Labor Commissioner's responsibility to deal with this issue?
-- What other legal steps this person could take?
-- What legal steps can I take against This person to use it as leverage against his actions

What would you suggest to do?
Your suggestions are much appreciated.
 
Last edited:


lwpat

Senior Member
I had a verbal agreement
And the problems started. Never ever ever hire someone to do a major project without a written contract. Here is an article that will help you in the future:
http://www.homes-in-sc.com/home-improvement-contractor.html

He is clearly an independent contractor. I hope that you kept the business card and have tape recorded the answering machine. If not have someone else pretend to need some work done and then you will have a witness, especially if you can get a written estimate on a letterhead. Check with your local codes office to see if any permits were pulled and if he was required to be licensed. It is likely that the entire deck does not meet code and will have to be redone.

If a license was required he cannot collect anything unless he tries the employee route. You need to try to find out the names of the other people that he paid. I am sure that he did not do the withholding and will be liable for that. In other words you can make a lot of trouble for him with all kinds of government agencies and I strongly encourage you to do so.
 

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