In a recent decision, the California Court of Appeal held that a contractor is responsible for unpaid wages owed to employees of an unlicensed subcontractor. In Sanders Construction Company v. Cerda, a general contractor entered into a subcontract with an unlicensed drywall contractor. When the unlicensed drywaller failed to pay his employees, the employees filed wage and hour claims against the general contractor. The Court cited provisions of the California Labor Code and the California Business and Professions Code for the proposition that anyone hiring an unlicensed contractor is deemed the employer of that contractor’s employees and is responsible for the wages owed to those employees, workers compensation premiums, unemployment insurance contributions, and withholding taxes attributable to the employees. The Sanders Construction decision provides a concrete reminder of the adverse consequences that a property owner or contractor can suffer as the result of entering an agreement with an unlicensed contractor.