Can I do a job under my employees contractors licenses

Question

I have a small repair shop. I have a job that is needing be done outside of my repair shop. The contractors license is necessary for the dollar amount. My employee is a licensed contractor but is working for me under my Workmen’s Comp.. Can I do the job under her contractors license, if she is employed by me on my payroll and under my Workmen’s Comp..

James L. Arrasmith · Answer

1. Generally, a contractor's license is not transferable. You cannot simply "use" your employee's license for your business operations. 
 
2. In California, the person or entity performing contracting work must hold the appropriate license. If your business is performing the work, it needs its own contractor's license. 
 
3. Using someone else's license inappropriately is known as "lending" a license, which is illegal in California and can result in serious penalties. 
 
4. The fact that the employee is on your payroll and covered by your workers' compensation insurance does not change the licensing requirements. 
 
5. There may be ways to structure the work legally, such as having your licensed employee act as a responsible managing employee (RME) for your company, but this requires proper setup and documentation. 
 
Given the complexities involved and the potential legal and financial risks, I strongly recommend consulting with a California construction law attorney or a licensed contractor specialist before proceeding. They can provide personalized advice based on the specific details of your situation and help ensure you're operating within the law.

Q: Can I do a job under my employees contractors licenses