Report Unlicensed Contractors!
AGAINST THE UNDERGROUND ECONOMY!!!
Are you a licensed plumbing-heating-cooling contractor who has lost work to:
Unlicensed Operators?
Contractors who operate outside of their license classification?
Competitors who do not pay workers’ compensation insurance, disability insurance, unemployment insurance, or federal and state employment taxes?
IF YOU ARE A VICTIM OF THESE ILLEGAL ACTIVITIES, THE
PHCC OF CALIFORNIA SUPPORTS YOU IN YOUR FIGHT
AGAINST THE UNDERGROUND ECONOMY:
PHCC of California has partnered with two state-government entities that are responsible for enforcing some or all of the laws that pertain to these activities: the Contractors State License Board (CSLB) and the Joint Enforcement Strike Force. The former oversees the Statewide Investigation Fraud Team (SWIFT), which investigates complaints against unlicensed contracting and related activities. The latter is a multi-agency organization that seeks to root out the underground economy and devotes a large portion of its enforcement efforts to the construction industry.
If you REALLY want to put your illegal competition out of business, you must help us help you!! You must report illegal activities to the proper state agency. PHCC OF California will assist you in this process and more.
Find out how YOU can assist the PHCC of California FIGHT BACK AGAINST THE UNDERGROUND ECONOMY!!
STANDARD OPERATING PROCEDURE FOR REPORTING UNLICENSED CONTRACTING ACTIVITY
Gather Information
It's important to gather as much information as possible when faced with competition you believe to be illegal. Here is a list of important information needed:
¨ Operator's name, address, phone number, vehicle make, and vehicle license number.
¨ Address of work in progress.
¨ Project owner's name, address, and phone number.
¨ Illegal Operator’s advertisements, fliers, and business cards.
¨ Is the Illegal Operator using a contractor's license number? If so, make a note of the number.
¨ Pictures—they’re worth a thousand words.
¨ Check with the CSLB to find out if the person or firm is licensed -- and licensed in the proper category. To check a license, visit the CSLB's website and go to License Status Check. You'll find a wealth of information there on all of California's licensed contractors.
Unlicensed Operators
¨ Fill out an Unlicensed Activity Lead Form and send it to the nearest CSLB SWIFT unit. The addresses and fax numbers of the two California units are on the form.
¨ Also fill out a Lead Report and send it to Underground Economy Operations (the Joint Enforcement Strike Force) at the address on the form.
¨ Fax a copy of both to PHCC of California at 916-925-7623.
Although SWIFT and the Joint Enforcement Strike Force cooperate very closely with one another on unlicensed operations, PHCC of California recommends that you inform both organizations to improve the chances of quick action. "CC" the name of the other organization and PHCC of California on both reports; that way both organizations will know that the other received the information as well.
Confidentiality
If you wish to remain anonymous, do not put your name on the lead referral form you send to the Joint Enforcement Strike Force. The accused has the right to see this report during the administrative proceeding and/or litigation process. The Joint Enforcement Strike Force has assured PHCC of California that anonymous leads are treated no differently from other leads. SWIFT, on the other hand, prefers that you give your name when making a report. They would like to be able to call you back and get more information if, for example, the unlicensed operator is not at the project the day they investigate. If you give them your name and request confidentiality, the odds are low that the unlicensed operator would ever learn that you were the one who reported him or her. The unlicensed operator could conceivably find out, however, in the unlikely event the file is subpoenaed.
Following Up on Your Complaint
SWIFT is willing to notify you about the status and results of an investigation. In fact, it's a good idea to follow up with them on reports or complaints you make. The Joint Enforcement Strike Force, on the other hand, will not and cannot share the results of its investigations.
Owner-Builder Information and Verification
State housing law requires every city and county to give property owners who apply for a building permit certain information about their liabilities as an owner-builder as well as a verification form to fill out (Health and Safety Code Section 19830-19832).
State law also requires these documents to be given by mail or to the applicant at the time the application is made, provided that the applicant presents identification sufficient to identify himself or herself as the owner. However, all too often the documents are given instead to the unlicensed operator who is applying for the permit. PHCC of California believes that if these documents actually reached more property owners, there wouldn't be as much unlicensed activity as there is today.
If you have reason to believe that your city or county is not mailing these documents or requiring identification as required by law, PHCC of California suggests that you contact your representative on the city council or board of supervisors, show him or her the relevant statutes from the Health and Safety Code, and ask that action be taken to bring the jurisdiction's policies into compliance with the law.
