California subcontract 2025

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Most importantly, carrying a general contractor license or other contractor license types is a legal requirement in California. In fact, the state requires general contractors, their subcontractors, and other specialty contractors engaged in home improvement to carry a license before even submitting a bid.
With the changes, an unlicensed person can complete a project that is up to $1,000 as long as they do not hire workers and no building permit is necessary. Once either of those applies, the job can only be done by a licensed contractor.
California Law Requires All Contractors to Have Licenses Additionally, it is illegal for a general contractor to hire an unlicensed subcontractor, and Entering into a contract with a contractor while such contractor is unlicensed . . .
Independent contractors dont need a license to operate in the state of California, but they may have other requirements based on where they build their business. Still others will vary based on the kind of work you do.
AB 5 requires the application of the ABC test to determine if workers in California are employees or independent contractors for purposes of the Labor Code, the Unemployment Insurance Code, and the Industrial Welfare Commission (IWC) wage orders.

People also ask

Subcontractors are individuals or businesses hired by a contractor to perform specific tasks or provide specialized services. Employees are individuals hired by a contractor to work under their direct supervision and control.
Contractors are required by law to be bonded by the State of California and to have a business license from the city or county in which they are performing work. They are also required by law to provide workers compensation if they employ or otherwise engage any person to work.
Beginning in 2025, private employers who hire certain independent contractors will be required to provide a written agreement specifying certain terms and to pay their compensation by certain deadlines. The new law aims to give freelancers basic worker protections and the right to be paid on time.

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