Professional License Lawyer in North Carolina

Can a Plumbing, Fire Sprinkler, or HVAC Company Hire 1099 Independent Contractors?

Can a Plumbing, Fire Sprinkler, or HVAC Company Hire 1099 Independent Contractors?

Today’s question is: Can a North Carolina plumbing, fire sprinkler, and HVAC company hire 1099 independent contractors? The answer to that question is a very clear no. This is found in the administrative code of the North Carolina State Board of Examiners of Plumbing and HVAC (Heating, Ventilation, and Air Conditioning), under 21 NCAC 50.0512 subsections (A) and (B).
They split it up into two subsections because subsection A talks about the requirements for somebody to be considered an employee, including the acceptance of unlicensed employees. What they go into a little bit of detail in that subsection A is talking about the supervision. They don’t really get into a lot of details of what that supervision looks like, but I did talk about that in a different blog, so be sure to check that out. They do have that in a different section in their code.
The subsection B part is where it talks about independent contractors, also known as 1099 employees, are not bona fide employees, so they do not meet the definition of employee that is referenced in subsection A of 21 NCAC 50.0512. So it is clear to attorneys, it’s clear to most people. It’s not crystal clear to everybody though that’s why I wanted to do the blog to make sure everybody was fully aware of it.
If you own a plumbing company, for example, you’ve got to be very careful not to hire independent contractors because the Board severely frowns upon that, and you will likely receive a complaint, which could result in a public reprimand, fines, or some other form of discipline from the Board. We don’t want to see that happen to anybody.
I hope this information helps everyone stay compliant and keep the water flowing in North Carolina. Have a fantastic day!
*Nothing in this blog establishes an attorney-client relationship. Nothing in this blog is legal advice. If you have any questions, please check out our other blogs and our Youtube channel. You can also call us at 919-521-8810 with questions.