1020.  It is the intent of the Legislature in enacting this chapter
to establish a citation system for the imposition of prompt and
effective civil sanctions against violators of the laws and
regulations of this state relating to the employment of workers by
unlicensed contractors and the utilization of unlicensed contractors
and other persons who are not valid independent contractors by
licensed contractors.



1021.  Any person who does not hold a valid state contractor's
license issued pursuant to Chapter 9 (commencing with Section 7000)
of Division 3 of the Business and Professions Code, and who employs
any worker to perform services for which such a license is required,
shall be subject to a civil penalty in the amount of one hundred
dollars ($100) per employee for each day of such employment.  The
civil penalties provided for by this section are in addition to any
other penalty provided by law.



1021.5.  Any person who holds a valid state contractor's license
issued pursuant to Chapter 9 (commencing with Section 7000) of
Division 3 of the Business and Professions Code, and who willingly
and knowingly enters into a contract with any person to perform
services for which such a license is required as an independent
contractor, and that person does not meet the burden of proof of
independent contractor status pursuant to Section 2750.5 or hold a
valid state contractor's license, shall be subject to a civil penalty
in the amount of one hundred dollars ($100) per person so contracted
with for each day of the contract.  The civil penalties provided for
by this section are in addition to any other penalty provided by
law.



1022.  If upon inspection or investigation the Labor Commissioner
determines that any person is employing workers in violation of
Section 1021 or 1021.5, he or she may issue a citation to the person
in violation.  The citation may be served personally or by registered
mail in accordance with subdivision (c) of Section 11505 of the
Government Code.  Each citation shall be in writing and shall
describe the nature of the violation, including reference to the
statutory provision alleged to have been violated.



1023.  (a) If a person desires to contest a citation or the proposed
assessment of a civil penalty therefor, he or she shall within 15
business days after service of the citation notify the office of the
Labor Commissioner which appears on the citation of his or her
request for an informal hearing.  The Labor Commissioner or his or
her deputy or agent shall, within 30 days, hold a hearing at the
conclusion of which the citation or proposed assessment of a civil
penalty shall be affirmed, modified, or dismissed.  The decision of
the Labor Commissioner shall consist of a notice of findings,
findings, and order which shall be served on all parties to the
hearing within 15 days after the hearing by regular first-class mail
at the last known address of the party on file with the Labor
Commissioner.  Service shall be completed pursuant to Section 1013 of
the Code of Civil Procedure.  Any amount found due by the Labor
Commissioner as a result of a hearing shall become due and payable 45
days after notice of the findings and written findings and order
have been mailed to the party assessed.  A writ of mandate may be
taken from that finding to the appropriate superior court, as long as
the party agrees to pay any judgment and costs ultimately rendered
by the court against the party for the assessment.  The writ shall be
taken within 45 days of service of the notice of findings, findings,
and order thereon.
   (b) A person to whom a citation has been issued, shall, in lieu of
contesting a citation pursuant to this section, transmit to the
office of the Labor Commissioner designated on the citation the
amount specified for the violation within 15 business days after
issuance of the citation.
   (c) When no petition objecting to a citation or the proposed
assessment of a civil penalty is filed, a certified copy of the
citation or proposed civil penalty may be filed by the Labor
Commissioner in the office of the clerk of the superior court in any
county in which the person assessed has property or in which the
person assessed has or had a place of business.  The clerk,
immediately upon the filing, shall enter judgment for the state
against the person assessed in the amount shown on the citation or
proposed assessment of a civil penalty.
   (d) When findings and the order thereon are made affirming or
modifying a citation or proposed assessment of a civil penalty after
hearing, a certified copy of the findings and the order entered
thereon may be entered by the Labor Commissioner in the office of the
clerk of the superior court in any county in which the person
assessed has property or in which the person assessed has or had a
place of business.  The clerk, immediately upon the filing, shall
enter judgment for the state against the person assessed in the
amount shown on the certified order.
   (e) A judgment entered pursuant to this section shall bear the
same rate of interest and shall have the same effect as other
judgments and be given the same preference allowed by law on other
judgments rendered for claims for taxes.  The clerk shall make no
charge for the service provided by this section to be performed by
him or her.


1024.  All civil penalties collected pursuant to this chapter shall
be deposited in the Industrial Relations Construction Industry
Enforcement Fund, which is hereby created.  All moneys in the fund
shall be used for the purpose of enforcing Section 226.2 and the
provisions of this chapter, as appropriated by the Legislature.
   It is the intent of the Legislature in enacting this section to
provide for the prompt and effective enforcement of labor laws
relating to the construction industry.

If You Need to Retain and Pay a California Attorney Regarding This Issue:

Brian Kindsvater, Esq.
Law Office of Brian Kindsvater
2377 Gold Meadow Way, #1031
Gold River, CA 95670
email
916.761.6863 - Direct Line
877.600.8500 - Toll Free
916.313.3443 - Facsimile


Mr. Kindsvater has assisted numerous individuals and businesses throughout California and the United States regarding California employment, business, and other legal issues.