Originally posted by @Rob K.:
I have unlicensed and uninsured guys working for me. I purchased a workmans's comp policy in case one of them were to get hurt. As far as a license, they are supposed to be licensed to do this type of work. Nobody would ever check, but if so, I'm licensed and they could work under mine.
You can save a lot of money if you find the right people. I just had a guy paint a three bedroom bungalow with a dining room. He painted every surface including the basement walls and both staircases for $500 labor. It looks good too. Try finding a licensed and insured guy to do that. Would be more like $1,200.
Hi Rob! Thanks for the post I'm considering doing the exact same thing. I do 1-2 rehabs a year, and hire unlicensed/uninsured people from home depot and craigslist. I am happy with their work about 90% of the time which I'm sure is the same satisfaction rate as paying a general contractor and subcontractors 30-70/hr.
Questions - Do you just pay people cash, 1099 people, or put them on as employees?
In California, you are required to have worker's comp if you have any employees. However, 1099 folks are not considered employees and under CA law not covered by WC insurance. So, I would be taking out WC insurance for 1099 people, even though they would be ineligible to claim. So, if they were injured in the course of work and could not claim WC from me, then they would likely sue me to get money somehow. In this 1099 situation, do you recommend extra coverage?
My other consideration is to put people on as employees.If i put them on as employees and pay piecework then I am covering them under my WC and still getting a good deal. However I am worried this may push a lot of people away since they want these cash jobs to keep collecting their food stamps.
So, if I pay cash to some people, the WC is still there as a backup? WC is expensive in CA, it's code 5403 "carpentry" for GC's and Owner builders, $2750 starting price.
