For example, in the recent case of Sanders Construction Company, Inc. v. Cerda, a general contractor was placed on the hook for unpaid wages to a subcontractor’s employees.[1] The appellate court held, under California Labor Code § 2750.5[2], that employees of the unlicensed subcontractor were also "statutory employees" of the general contractor.[3] Accordingly, the general contractor shared and inherited the wage debts of the unlicensed subcontractor.

Vebr sued the Culps on a theory of premises liability and respondeat superior. California Labor Code § 2750.5 provides that a worker who performs services for which a license is required, but lacks such license, is presumed to be an employee, not an independent contractor. Vebr contended that since he performed services for the Culps, and a painter’s license was required, he was an “employee” of the Culps, as were his fellow colleagues of OC Wide Painting.

The installers alleged that Lowe’s failed to provide them with an array of benefits that were available to employees, including comprehensive group medical insurance, prescription drug coverage, vision care, group life insurance, paid sick leave, paid vacation, tuition reimbursement, employee discounts for purchases, short and long term disability coverage, a stock purchase plan, and a matching 401(k) savings plan. The installers alleged that they were entitled to such benefits under California Labor Code Sections 2750.5 (which establishes a rebuttable presumption that a worker performing services for which a license is required is an employee and not an independent contractor). The installers also alleged that under California Labor Code Section 2802.