Avoid a CSLB Stop Order
Be prepared for random site inspections by CSLB & EDD targeting GCs hiring unlicensed contractors.
Verify your subcontractors have a legitimate business and their construction license does not become suspended or revoked during a project.
Contractor’s licenses frequently become suspended or revoked for many reasons, without any warning to the general contractor.
Avoid costly problems and receive monthly alerts when the status of your subcontractor’s license changes. Our reports are developed based on years of experience with many government audits. These audits target companies who potentially misclassified their workers as independent contractors.
CSLB routinely conducts random inspections of construction sites looking for unlicensed workers. In 2019/2020, CSLB’s Statewide Investigative Fraud Team (SWIFT) responded to 855 leads, conducted 52 sting operations and 216 sweep days, which led to the issuance of 260 Notices to Appear in criminal court. SWIFT issued 239 stop orders to employers without workers’ compensation insurance and issued 1,494 advisory notices. In total, 368 cases resulted in administrative action and 634 cases were referred for criminal prosecution.
California Department of Consumer Affairs had 34,154 Convictions and Arrests Cases and a total of 116,234 new Enforcement Cases against
We will verify your subcontractor’s business information, which includes and EIN verification, tax license review, business location, and other credentials.
California law changed in 2020 with AB5. California has strict requirements when you can classify a worker as an independent contractor versus an employee. First, any unlicensed workers performing any work in connection with construction work will be required to have a license or may be reclassified as your employee. EDD may audit your company and assess payroll taxes, penalties, and interest for all payments you made to your workers for the prior 3 years. Although the typical audit period is 3 years, EDD may extend the audit period to 8 years under certain circumstances.
The audit rate for misclassified independent contractors is up. Various government agencies are investigating companies that hire workers who may not be legitimate independent contractors.
Click the link to the right to begin the process of submitting your workers’ information. You can get started with as little as a name, EIN number. Your got1099 report will be delivered to your inbox within 5 business days and will provide you with validation of licenses, a rating scale of the likelihood that the workers reviewed would need reclassification if audited and if you choose, regular updates on license status.