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CSLB Investigative Centers Begin Issuing Stop Orders

CSLB enforcement representatives (ERs) were given state authority to issue job site stop orders where employee workers' compensation insurance is lacking, beginning January 1, 2011. But ERs can also issue the orders without being at a physical location. Starting in November 2011, ERs in CSLB's Investigative Centers began issuing stop orders to contractors without valid workers' compensation policies.

image of Stop Order brochure

The first stop order was issued from the Sacramento Investigative Center (IC). In this case, a consumer complained that a licensee hired to make repairs on a home addition had an exemption on file with CSLB, but was using two employees for the project. CSLB's investigator issued a stop order and administrative citation for filing a false workers' compensation insurance exemption. The licensee was cooperative, and obtained a valid policy for his workers within two weeks.

CSLB's stop order authority was established when Senate Bill 1254 passed in 2010. Since that time, ERs in CSLB's Statewide Investigative Fraud Team (SWIFT) have regularly issued them at sting operations. In addition to SWIFT and IC actions, CSLB's Intake and Mediation Center representatives can cancel a false workers' compensation exemption and suspend the license. While under a workers' comp suspension, the licensee has 30 days to obtain a valid workers' compensation policy or recertify the exemption.

photo of Board chair Bob Lamb
A Message From the Board Chair

You'll want to pay attention to some of the new laws that are on the horizon as well as new conveniences being made available to licensees. Several new laws that take effect on January 1, 2012, may affect your business operations and employees. Among the laws detailed in an article inside this newsletter is information about:

  • a new requirement to recertify your workers' compensation insurance exemption at the time of each license renewal;
  • how misrepresenting information in a mechanic's lien voids the claim;
  • a new requirement for workers' comp insurers to notify CSLB if your policy is cancelled;
  • changes to the penalties for not paying the general prevailing wage on a public works project;
  • requirements for notifying CSLB when a license qualifier disassociation takes place; and
  • a new alert that is sent to CSLB from the Labor and Workforce Development Agency when employees are misclassified as independent contractors.

The Sacramento headquarters office has expanded the convenience of paying by credit card that was launched last year, and now accepts credit payments for 11 different types of transactions using either a Visa, MasterCard, Discover or American Express card. See page 7 for details.

Limited liability companies (LLC) will soon be able to receive a contractor license for the first time. CSLB's Licensing and Information Technology divisions have been busy developing new application processes . A notice will be distributed and posted on the CLSB website before January 1, 2012, that explains how to apply for the LLC license.

In recent months, the state hiring freeze prevented CSLB from filling staff positions in many departments, including its Licensing Information Center, so I to encourage you to use the CSLB website as a resource and to answer your questions whenever possible until staff resources are reestablished.

Remember to follow CSLB updates on Facebook and Twitter, and participate in various issue discussions throughout the year. The best way to receive your California Licensed Contractor newsletter and current CSLB information is by signing up for "Email Alerts." The Email Alert sign-up feature is available on every page of the website and ensures that you will automatically receive news and industry bulletins, meeting announcements, or newsletters.

Bob Lamb's signature

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