“Referral Fees”
By Sam K. Abdulaziz, Abdulaziz, Grossbart & Rudman
Harry Moos, Executive Vice President of PHCC of California, contacted me concerning referral fees and the concerns of other contractors. We are told that legitimate contractors are being bombarded by others as a result of perceived illegal actions.
Business and Professions Code Section 7157 deals with compensation or reward for referral sales. It also sets out some exceptions. The following is a shortened statement of the law:
