can a subcontractor to a GC hire another subcontractor
1 reply
Nov 19, 2019
The brief nature of the questions makes it hard to understand what exactly you are asking.
AB5 primarily governs whether a worker is an employee or an independent contractor. It codifies the Dynamex case in certain industries that rely on gig workers (ex. Uber, Lyft & industries that pay by piecemeal) and those that don't meet the standards of Dynamex should still rely on the prior Borello standards.
the short condensed version: if you are a licensed subcontractor and you hire another validly licensed subcontractor that has their own business performing what you hired them to do, you are within the safe harbor.
Of course, there are a lot more little details that can make that relationship fall out of the independent contractor and back into an employee status. Best check with a knowledgeable construction attorney.
Also, depending on whether your contract with the GC permits you hiring a sub-sub, you may be out of compliance with the contract.