Sept/Oct 2012

News from Abdulaziz, Grossbart & Rudman

Abdulaziz, Grossbart & Rudman Newsletter
Sept./Oct. 2012

We hope that you enjoy this edition of our Newsletter.
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The Staff At
Abdulaziz, Grossbart & Rudman





Before utilizing or allowing "independent contractors" on the jobsite, it may be necessary to realize the possible ramifications of having them there.


SB 459 amended the Labor Code with respect to independent contractors by increasing penalties for purposefully misclassifying an employee as an independent contractor. This misclassification is somewhat common in the construction industry by contractors who want to avoid paying taxes or workers' compensation for the "independent contractor" employee. Under SB 459, the CSLB is also required to initiate a disciplinary action against the contractor and that contractor will be disbarred from bidding projects based on violations of the Labor Code.


The Employment Development Department and the Internal Revenue Service indicate that the best way to determine if someone is an independent contractor or an employee is whether or not the principal has the right to direct and control the manner and means by which the work is performed. If the "right of control" exists, then there is an employer/employee relationship. If there is no "right to control" then generally it is an independent contractor relationship. If it is still not clear, there are secondary factors that can help determine the relationship.

If a contractor employs individuals that are not on the workers' compensation insurance but should have been, then that contractor runs the risk of having its license deemed invalid -- unlicensed. As you may or may not know, there are significant ramifications for being unlicensed including having to reimburse all monies paid on a project during the time frame the contractor was considered unlicensed.

Additionally, in the case of Tverberg v. Fillner Construction, Inc., the Court of Appeal held that a direct contractor may be held liable for an independent contractor's injuries when the direct contractor has control of safety conditions on the jobsite. In this case, Tverberg was an independent contractor of one of Fillner's subcontractors. This case shows that the liability from conditions that are possibly created by others is a high probability to the direct contractor. There are indemnity and insurance provisions that can be incorporated into the construction contracts to help protect all involved.


Now you see some of the reasons why utilizing or allowing independent contractors on the jobsite can be risky. It is imperative that your independent contractors are classified properly and would not be considered employees. You should also have your contracts contain proper terms and conditions to better protect yourself. Good luck!


Here are the Five Rules for Men to Follow for a Happy Life that Russell J. Larsen had inscribed on his headstone in Logan, Utah. He died knowing that he would win the 'Coolest Headstone' contest.


  1. It is important to have a woman who helps at home, cooks from time to time, cleans up, and has a job.
  2. It is important to have a woman who can make you laugh.
  3. It is important to have a woman who you can trust and does not lie to you.
  4. It is important to have a woman who is good in bed and likes to be with you.
  5. It is very, very important that these four women do not know each other or you could end up dead like me!





Some of the most common causes for serious work related injuries and even deaths are from falls. It is the employers' responsibility to make sure that the jobsite is set up to prevent employees from falling off of elevated work stations or overhead platforms and even into holes that may be in the floors or walls.


OSHA requires employers to:

  • Provide working conditions that are free of known dangers.
  • Keep floors in work areas clean and (as far as possible) dry.
  • Select and provide required personal protective equipment at no cost to workers.
  • Train workers about job hazards in a language that they understand.


In order to prevent employees from being injured from falls, employers must:

  • Guard every hole into which a worker can accidentally walk into (by using a railing and toe-board or a hole cover).
  • Provide a guard rail and toe-board around every elevated open sided platform, floor or runway.
  • Regardless of height, if a worker can fall into or onto dangerous machines or equipment, employers must provide guard rails and toe-boards to prevent workers from falling and getting injured.
  • Other means of fall protection that may be required on certain jobs includes safety harness and line, safety nets, start railings and hand rails.


Effective March 15, 2012, OSHA rules require all construction companies to have a Fall Protection Plan (FPP) for each project/jobsite. The construction industry is required to have the FPP for six foot elevations. Are you complying with OSHA's FPP? OSHA can address concerns from both employers and employees at 1-800-321-OSHA (6742).


What toddlers do when anyone mutters a dirty word.

Bed and Breakfast
Two things that kids will never make for themselves.
All New
The software that is not compatible with previous versions.

Cubes of frozen water which would be found in plastic trays if kids or husbands ever filled the darn things instead of putting them back in the freezer empty.

Collecting Your Money Through Mechanic's Liens, Stop Payment Notices & Bonds
Presented by Kenneth S. Grossbart
Hosted by Shasta Builders Exchange

Thursday, October 11, 2012
Learning Objectives:
  • Learn how to protect your rights
  • Learn which forms to use
  • Learn about the new changes to the Preliminary Notice
  • Learn the new laws that affect Mechanic's Liens & Stop Notices
  • Learn what legislative changes there are because of SB 189 and others
  • Learn what to do to make a Mechanic's Lien valid
  • Learn how to record and enforce a Mechanic's Lien
  • Learn the basic Stop Notice requirements
  • Learn the basics on bond claims
  • Learn common pitfalls to avoid
  • Learn how to collect your money!

Email any questions to

* * * * * * *

Presented by Kenneth S. Grossbart
Hosted by Shasta Builders Exchange

Thursday, October 11, 2012
Learning Objectives:
  • Learn contract do's and don'ts
  • Learn some of the construction contract clauses to use and avoid
  • Learn the new laws affecting contractors and business owners
  • Learn the rules on collecting through Small Claims Court
  • Learn about various other general legal and construction issues by asking the expert!

Email any questions to

Abdulaziz, Grossbart & Rudman
provides this information as a service to its friends and clients. This Newsletter is of a general nature and is not intended to be a substitute for legal advice. This Newsletter does not establish an attorney-client relationship with the reader. Since laws are ever changing, please contact an attorney before using any of the information contained within this Newsletter.
Abdulaziz, Grossbart & Rudman
P.O. Box 15458, North Hollywood, California 91606
(818) 760-2000; (818) 760-3908 (fax)
In This Issue

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Collecting Your Money Through Mechanic's Liens, Stop Payment Notices & Bonds
October 11, 2012

Ask The Expert
October 11, 2012

Collection Remedies
October 11, 2012

Credit and Collection in the Construction Industry - October 17, 2012
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