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Workers Comp Requirements for Religious Contractors

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I hope I have this in the right category.

So, I have a construction firm that is a family partnership (Dad, Mom, 2 sons) and directly tied to a religious group (Mennonite). Dad is currently out of the country on a mission and the two sons are running the business. After talking to the CA Contractors State License Board, I have learned that CA Contractors State License Law exempts the partners from having to carry workers comp.

I have shown up to two different sites over the past few months and have found additional personnel working on site. I have issued one verbal warning at the first job site that workers comp is required by CA and got the reply that their lawyer said they could 'add partners' for xyz job as long as the 'new partners' paid into a fund. I told him I had never heard of this before and didn't think that it was legal under CA law.

Second job is cruising along and I showed up today and there are additional personnel. I don't quite know how to handle this one. I am thinking a letter might be in order stating that they get workers comp or prove that they don't need it because Jon Doe is a partner according to the law for the length of the job or?

I am asking, what would you do?

BTW, I have two religious groups locally that do contracting, and the other is not Mennonite/Amish.

Sue, the puzzled :???:
 
Can't speak for CA, but in NY as soon as they hire a sub they need worker's comp. So if they hire a mason to do foundation, an electrician to wire an outlet, a plumber to put a spigot in.. they need comp. Sometimes that's easier than trying to prove who is/isn't a partner.
 
Is it your job to enforce CA contractor licensing laws? You have already talked to the CA Contractors State License Board, turn them into the state board and let them do their job.
 
Good point. We're required to ensure contractors have comp when they apply for a permit, which is when we address these issues.. eg "Project: installation of in-ground gunite swimming pool", "Contractor: Homeowner" may solicit a few questions from us.

In your particular situation mtl has the correct solution imho, report them.

We have placed a stop work on jobs where a contractor is fired and removes his comp/insurance from the job until such time as there is a new comp policy in effect.
 
Thanks for the input. I have given them one warning on the last job, talked to the county guy this AM and he has done the same. I'm done, especially when one of the 'workers' I observed yesterday is underage and this violates state labor law.

Sue
 
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