This law is about creating a system that quickly and effectively penalizes people who break rules involving the employment of workers by unlicensed contractors. It also targets licensed contractors who improperly use unlicensed workers or those not recognized as valid independent contractors.

If someone hires workers to do a job that requires a contractor's license but they don't have one, they will face a $200 fine per worker, for each day those workers are employed. This fine is on top of any other legal consequences they might face.

If you have a valid contractor’s license in California and hire someone as an independent contractor for work requiring a license, you must ensure that person is either a licensed contractor or meets the standards to be classified as an independent contractor under Section 2750.5. If not, you could be fined $200 for each day the unlicensed or improperly classified person works under your contract. This penalty is additional to any other legal penalties you might face.

If the Labor Commissioner finds that someone is breaking specific worker-employment laws, they can issue a written citation to that person. The citation can be delivered in person or through registered mail, and it must detail what law was violated.

In California, if you receive a citation or a civil penalty from the Labor Commissioner and want to contest it, you have 15 business days to request an informal hearing. After the hearing, the citation may be confirmed, changed, or dismissed. The decision will be communicated by mail, and if any amount is due, it must be paid 45 days after the decision is mailed. If you disagree with the decision, you can appeal to a superior court as long as you agree to cover any court costs.

If you choose not to contest the citation, you can simply pay the specified amount within 15 business days. If you don't object, the Labor Commissioner can file the citation with a superior court, leading to a judgment against you. For judgments issued after a hearing, they also can be filed with the court, and interest will accrue on unpaid amounts as with other debts. The court clerk will handle these filings without charge.

This law aims to ensure quick and effective enforcement of labor laws specifically for the construction industry. Before July 1, 2013, any civil penalties collected under this law were to be put into a special fund called the Industrial Relations Construction Industry Enforcement Fund, dedicated to enforcing these rules. After this date, the penalties are directed to the Labor Enforcement and Compliance Fund.