Is this a labor law violation in Calif?

[Alfred Bell]

I'm thinking about getting an owner/builder worker's comp insurance policy so that I can engage a few guys to do a condo remodel for me. I want them covered with workers comp to avoid any liability lawsuit if anyone gets injured.

I don't want to do the payroll thing (FICA, FUCA, SS, Medicare, unemployment, etc. etc.). I will just notify them in writing that they are responsible for their own taxes, and pay them weekly, and then at the end of the job (which will only take 3-4 weeks) I will 1099 them.

Is this acceptable or would I be violating some labor, payroll or employment law?

Thanks in advance for any assistance,
Alfred

[J Scott]

Like I suggested in the other thread you started on this topic, I don't see any good reason why you should either be hiring full-time employees or should be providing WC insurance for your contractors. Both of these decisions add additional overhead, cost and complexity that I don't think is necessary, unless you plan to start rehabbing full-time (and even then, it's probably not worth it unless you can keep your contractors working full-time, which is much harder).

Instead, I would recommend just hiring contractors that already have liability and WC insurance on their own (there are many of them), and let them cover the cost of insuring themselves. Worst case, find a GC, and have him do the work. A GC will only charge 10-15% markup if you negotiate well (and offer to do most of the management), which is still less expensive than you paying for the WC insurance.

Just my $.02...