Is it illegal to hire an unlicensed contractor in california. Sep 27, 2018 · Not necessarily.

Is it illegal to hire an unlicensed contractor in california Under BP 7028, it is illegal to: Operate as a contractor without a valid license issued by the Contractors State License Board (CSLB). In this state just as it is with other The California construction industry faces a significant change as Assembly Bill 2622 raises the threshold for unlicensed contractor work from $500 to $1,000, effective January 1, 2025. It is the unlicensed contractor that takes the legal risk of operating without a contractors license. Those who operate without a state-issued license harm the public, tarnish the respectability of the construction industry, and undermine California’s financial foundation Feb 19, 2025 · Understand the legal risks and exceptions of hiring an unlicensed contractor in California, plus how to verify credentials and report violations. Feb 19, 2025 · Understand the legal risks of hiring undocumented workers in California, including verification rules, penalties, and when to seek legal guidance. By following these steps, you could save yourself from financial risk and other problems associated with unlicensed individuals. The CSLB enforces strict regulations to protect consumers and ensure that only qualified, licensed contractors perform work in the state. Here’s a summary of the most important changes: 1. How can I report illegal advertising by an unlicensed contractor? This is a link to a form you can use to file an advertising complaint with CSLB. ) Mar 10, 2025 · It’s Illegal for Unlicensed Contractors to Charge Over $500 In California, any contractor performing construction work for more than $500 in labor and materials must be licensed by the Contractors State License Board (CSLB). A. Discovering that the contractor you hired is unlicensed can raise serious concerns about legal compliance, financial risks, and project quality. SWIFT and LETF Statewide Investigative Fraud Team (SWIFT) Dec 8, 2022 · It is not illegal for a homeowner to hire an unlicensed contractor for improvements to their primary residence. A first-time conviction is a misdemeanor punishable by up to 6 months in jail and fines of up to $5000. When a contractor is not properly licensed, there may be significant consequences to these workers as well as to the people who hire them to perform the work. or Sue a Property Owner in California to Enforce a Mechanics Lien, to Recover their Agreed or Statutorily Required Wages for Construction Work? One of the oldest obstacles to collection of payment for unlicensed construction worker in California is the Contractor’s State License Law’s prohibition against lawsuits by unlicensed contractors to recover payment for their work. May 18, 2022 · Reviewing the application of Section 7031 to the question of a licensed contractor engaging an unlicensed contractor to perform work, the appellate court followed the general rule that a court’s primary goal in construing a statute “is to determine and give effect to the underlying purpose of the law,” Goodman v. In an opinion that should be a warning to all licensed contractors in California, the Court of Appeal held that licensed contractors cannot collect payment from project owners for unlicensed subcontractor work under California Business and Professions Code § 7031(a). From increased thresholds for unlicensed work to enhanced protections for freelance workers, these updates are critical for staying compliant and avoiding penalties. This comprehensive guide explores what this change means for both licensed and unlicensed contractors in California. Nov 8, 2024 · Consumers need to be mindful to always hire licensed contractors with valid insurance and verify their status on the CSLB website. Jan 6, 2025 · As we approach 2025, several significant legal changes in California will affect contractors, employers, and freelancers. , in reference to California’s ongoing effort to crack Jun 11, 2025 · What is the California contractor's license? The California contractors license is a legal certification issued by California's Contractors State License Board (CSLB). Higher Dollar Threshold for Unlicensed Contractor Work Complaints Against Unlicensed Contractors In California, it is a misdemeanor to engage in the business or act in the capacity of a contractor without a contractors license unless the contractor meets the criteria specified in Business and Professions Code sections 7040 to 7054. Any contractor performing work of $500 or more (combined labor and material costs) must be licensed by CSLB to work in California. Dec 13, 2023 · According to California law, all contractors hired for jobs over $500 (labor & materials included) are required to hold a license. This can result in substandard work and legal disputes. Note that California law requires a license for 40 construction-related trades, from plumbers to electricians. If this is the first time you’re reading this, then make sure you check out our other post on hiring unlicensed contractors in California. Building Department Referral Form Use this form to notify CSLB about unlicensed activity, contractors working without workers' compensation insurance, and building code We would like to show you a description here but the site won’t allow us. Additionally, it is illegal for a general contractor to hire an unlicensed subcontractor, and “Entering into a contract with a contractor while such contractor is unlicensed . This depends on the policies' availability and state Workers' Compensation California considers the hiring of unlicensed contractors to be an insidious and illegal underground economy and strongly dis-incentivizes (and sometimes criminalizes) the practice. May 9, 2022 · Contractors and Subcontractors are governed by this licensing law. May 7, 2025 · The contractor landscape in California is changing — and fast. This $500 includes all combined labor and material costs. The proposal is the contract. May 8, 2022 · Homeowners will occasionally hire someone to do work at their home on a full-time, part-time, or one-time basis, such as housework, painting, landscaping, etc. Understanding your rights to sue an unlicensed contractor for damages is essential for protecting your interests as a homeowner or client. What is illegal contractor activity? Who is considered an illegal contractor? It is illegal for an unlicensed person to perform contracting work on any project which requires a building permit, or employee labor is used or the project is valued at $1,000, or more in combined labor and material costs. Is it illegal to hire an unlicensed contractor in Arizona? Arizona law allows unlicensed contractors to perform certain jobs as long as they cost less than $1,000, including labor, materials and other items. There are two possible State of CaliforniaWhat Kind of Contractor Do You Need? Here are some guidelines to use when you begin searching for licensed contractors. State of CaliforniaAt the request of the building industry, the Contractors State License Board (CSLB) was established in 1929 to help raise construction standards through state regulation and, thereby, protect consumers. This law is in place to protect consumers from unqualified contractors and to ensure compliance with state regulations. Activities such as answering phones or filing paperwork do not require licensure from the Contractor State License Board (CSLB). California Contractors’ Licensing Requirements, and the Adverse Effects to Contractors from the Failure to be “Duly Licensed” as Required by the California Contractor’s State License Law - San Francisco Construction . Perform contracting work Aug 19, 2020 · Is it illegal to hire an unlicensed contractor to remodel your home in the state of California? My elderly parents hired an unlicensed contractor to remodel the bathrooms in their home and he did an absolutely terrible job. A recent California appellate court opinion provides insight to a long-standing dispute regarding Section 7031 of the Business and Professions Code. Is that legal in California? Is that a form of sub contracting? Or is he simply just performing work as an unlicensed contractor? May 9, 2024 · As a General Contractor in California it is crucial to understand the legal requirements and potential risks associated with hiring subcontractors. Under California Contractor’s State License Law (CSLB), an unlicensed contractor may not “bring or maintain” any action for compensation for performing any act or contract for which a license is required; unless the contractor Oct 25, 2024 · Hiring an unlicensed contractor to save some money could be very problematic and leading to long-term negative financial effects. May 15, 2024 · Hiring an unlicensed contractor is not illegal in all cases, but it can pose significant risks. In today’s alert, Attorney General Bonta urges Californians to take precautions by Feb 21, 2024 · Conclusion Operating as an unlicensed contractor in California carries significant risks, including legal penalties, financial liabilities, and damage to one’s professional reputation. Homeowner hires unlicensed contractor to handle landscaping and tree-trimming A recent California court case is an example of the risks property owners take by hiring an unlicensed contractor—and the possible liability they can face. Legal Requirements for HVAC Work in CA: Mar 10, 2025 · For example, if an unlicensed contractor will only be doing administrative tasks, no additional permit would be required. The Law Office of Robert Eckard & Associates, P. Aug 18, 2025 · In California, anyone who builds, remodels, or improves property must hold a valid contractor’s license if the total labor and materials exceed $500. Where the licensed contractor pulls the permits and he, the unlicensed roofer, performs the work. Feb 15, 2025 · Disputing a Lien Disputing a lien filed by an unlicensed contractor requires property owners to take specific legal steps. While this update offers flexibility for homeowners and handypeople, it also increases the risk of contractor fraud and scams. Due to a variety of different reasons, including cost-related, hiring an unlicensed contractor to undertake construction work might seem to be an ideal option, but this is not the case in California. A person cannot hire an unlicensed contractor to develop or to complete a construction project. 5. California Laws on Hiring Unlicensed Contractors Homeowners Hiring Unlicensed Contractors How Hiring an Unlicensed Contractor Can Cost You $750,000 My unsolicited advice to you: Don't try to dissuade your friend because that puts your friend in a defensive mindset. ca. Hiring an unlicensed contractor can lead to trouble for a homeowner. Furthermore, the law may be invoked to bar a contractor’s claim, even if the opposing party knew at the time of signing the contract, or discovers prior to completion of the work, that the contractor is unlicensed. Jan 26, 2023 · Reminds Californians that price gouging restrictions remain in effect OAKLAND – California Attorney General Rob Bonta today issued a consumer alert warning Californians to beware of fake and unlicensed contractors soliciting their services to Californians affected by damage from the recent winter storms. Perhaps he even came with good references. In Florida, unlicensed contracting is not only a risky affair for homeowners and businesses but also a legal issue that can result in criminal charges and civil actions. Yet many unlicensed contractors operate without the required license, bond, or insurance—leaving property owners financially exposed when things go wrong. Apr 26, 2024 · When dealing with construction and renovation, hiring a licensed contractor is critical to ensuring quality work and legal compliance. Risks for Homeowners Who Hire Unlicensed Contractors Homeowners assume significant risks when they knowingly or unknowingly hire an unlicensed contractor. If a homeowner hires an unlicensed Oct 27, 2025 · An unlicensed contractor is not just a contractor without a license, but also could be a contractor that is incorrectly licensed. One primary basis for disputing a lien is the contractor’s unlicensed status. It is well-established that under Section 7031, an unlicensed contractor is barred from seeking compensation for work requiring a contractor’s license. Unlike California, many states do not require construction contractors, subcontractors or builders to have experience, pass qualifying tests, have minimal financial resources, or obtain a State License through a “qualified individual” to be able to engage in the construction contracting business in their state. Mar 20, 2025 · Learn if unlicensed contractors can file a mechanics lien California, legal exceptions, and alternative payment options for construction disputes. For example, let’s say your contractor has a messy work site, and a neighbor or passerby is injured by falling debris or a child steps on a nail, you could be held liable for damages. In California, hiring unlicensed contractors is not technically illegal, but the consequences of hiring an unlicensed contractor can far eclipse simple legal issues. 00. However, doing so can expose you to a variety of risks and potential penalties. Oct 12, 2021 · What Happens If I Hire an Unlicensed Contractor and There Is a Problem? One option a person has if they experience an issue is to report an unlicensed contractor. May 9, 2025 · As you prepare for your California contractor license exam, you’re likely focused on technical knowledge, safety codes, and business practices. Likewise, the contractor also faces stiff consequences. Again, the law on contractor licensing varies from state to state and locality to locality within states, but all states have state agencies that handle business licensing, contractor licensing and consumer protection. Learn more. Mar 17, 2025 · Enforcement by Licensing Authorities The California Contractors State License Board (CSLB), operating under the Department of Consumer Affairs, regulates and enforces contractor licensing laws. The decision to update your home can be a big and expensive one, so take your time before you decide to hire a contractor. Mar 14, 2024 · California General Contractors are at serious risk if they hire Unlicensed Subcontractors. Jul 12, 2014 · Yes, the general contractor can hire an unlicensed subcontractor. TWA Construction, Read More Apr 23, 2024 · Opting for an unlicensed contractor can carry substantial hazards and legal repercussions for both homeowners and contractors. - to recover payment for sums/charges attributable to the work of a “subcontractor” that lacked proper licensure. Both owners and general contractors are entitled to protection against illegal subcontracted work by unlicensed persons. California, by contrast, has a very strict comprehensive, and long-established When embarking on a construction endeavor in California, it’s paramount to grasp the legal stipulations concerning contractor licensing. Aug 7, 2024 · Learn about the risks and legal implications of hiring an unlicensed contractor. A recent construction case in California should give general contractors pause when hiring unlicensed subcontractors to perform work on a project, even though the general contractor is licensed. . These are the In California, the laws for contractors are very strict. Also, a contractor who uses such an unlicensed “subcontractor”, even if the hiring contractor is itself properly licensed, may not use the courts - either in a breach of contract case or in a mechanics lien action, etc. Learn what happens if you hire an unlicensed contractor. Under Labor Code section 2750. It grants individuals or businesses the authority to conduct legal contracting work within the state. California Business and Professions Code 7028 makes it illegal to engage in contracting unless you have a current and valid contractor’s license. In summary, hiring an unlicensed contractor should not be an option for your association. It investigates unlicensed activity through consumer complaints, undercover sting operations, and job site inspections. Courts can impose a fine of up to $5,000 on unlicensed contractors as an alternative to jail or in addition to a prison term. A property owner can get into legal trouble if they hire a contractor that does not have the proper license in California. There are consequences for the contractor working without the Feb 6, 2025 · Hiring a contractor is often a significant investment, whether for home renovations or other projects. When you first meet the contractor, he seems highly professional, organized, and ready to complete your project on time. Investigators from CSLB’s Statewide Investigative Fraud Team (SWIFT) issued Notices to Appear in criminal court to 14 people, one with a prior grand theft conviction and another with Sep 23, 2013 · No. Jul 31, 2024 · In California, HVAC work must be performed by a licensed professional. With the new law increasing the threshold for unlicensed work from $500 to $1,000 starting January 1, 2025, more people than ever may attempt small construction jobs without a license. This means that when an unlicensed contractor is hired by a homeowner or homeowners' association that contractor, and potentially any employees of that contractor, is considered to be an “employee” of the homeowner or homeowners' association Sep 2, 2025 · Hiring an unlicensed subcontractor is not illegal in all cases, but it can pose significant risks. Mar 11, 2024 · The take-home advice is to do whatever you can to avoid hiring an unlicensed contractor. The full text of the code section reads as follows: 7028. Dec 30, 2024 · Discover homeowners' legal options when using unlicensed contractors for home projects over $500. Jul 22, 2025 · An unlicensed contractor also cannot file a mechanic’s lien against a property to secure payment. The lack of a license might indicate that your contractor lacks the necessary skills and expertise required for delivering high-quality work. Not only is hiring an unlicensed contractor a bad idea, it’s actually against the law in California for an unlicensed contractor to work on any construction project totaling $500 or more (Business and Professions Code §7048). The legality depends on local laws and the type of work being performed, so it’s on you to make sure that you’re staying compliant. Jan 25, 2025 · Hiring a contractor to work on your property can be challenging, particularly if the contractor is unlicensed. This article outlines the legal remedies and damages available to homeowners and Jun 11, 2020 · Using An Unlicensed Construction Contractor in California by Andy Chen | Jun 11, 2020 | California | 0 comments Many people, at some point in their lives, hire a construction professional — such as an electrician or general contractor — to do some sort of project, such as a home remodel or addition. The New Legislation Explained Think of this change like updating an old rule to match today California’s Contractor’s License Law requires contractors to be duly licensed to perform most renovations or new construction. Also, licensed contractors aren t allowed to hire unlicensed ones for work. Using unlicensed subs is called aiding and abetting unlicensed contracting and can be prosecuted as a crime or subject the licensee to discipline by the CSLB. Jul 24, 2022 · What Happens If You Hire an Unlicensed Contractor? As a homeowner, conducting your research and avoiding employing unlicensed contractors is crucial. Sep 24, 2025 · California general contractors should not hire unlicensed subcontractors, as they are liable and may have to pay for the work. This license proves that the contractor has met specific requirements and possesses the necessary skills, knowledge, and Jan 6, 2022 · Financial penalties In California, the California Business and Professions Code 7028 BP details that it is an offense to operate as a contractor without a license in California. This article aims to delve into the query, “Is it illegal to hire an unlicensed contractor in California?” and furnish Call (415) 788-1881 - Wolff Law Office is dedicated to serving our clients with a range of legal services including Construction Litigation and Real Estate cases. Don’t respond to door-to-door sales or high-pressure sales tactics. As in other jurisdictions, an unlicensed contractor may be subject to both civil and criminal penalties, such as imprisonment and/or a hefty fine for the intentional use of another persons’ license with intent to Sep 27, 2018 · Not necessarily. Alternatively, the client may be the employee of the unlicensed contractor. GENERAL ADVICE Only hire state-licensed contractors for home improvement projects. There are significant hazards associated with using unlicensed contractors. Therefore, an unlicensed contractor may not recover compensation for his or her work from either the owner or the general contractor. Substandard, non-compliant workmanship leads to safety issues and legal troubles that you do not need in your life. California residents - protect yourself from problems you could encounter hiring an unlicensed contractor. California has a strict law that prohibits using an unlicensed contractor to complete construction work. Unscrupulous, unlicensed contractors often prey on victims of natural disasters. Except as State of CaliforniaBuilding Official Information Guide CALBO/CSLB Guidelines Get information about how all building department personnel can help identify and resolve problems created by licensed and unlicensed contractors. 5, the contractor can California has strict laws against unlicensed contractors. Jan 26, 2010 · 2010 June Plaintiffs’ attorneys may encounter work injury cases where the client was an unlicensed contractor – a person who did not have the proper California State contractor’s licensing to perform the work. Sep 13, 2018 · Hiring an unlicensed contractor also makes you liable for that contractor’s negligence. This article aims to delve into the query, “Is it illegal to hire an unlicensed contractor in California?” and furnish invaluable insights into the ramifications thereof. The contractor faces harsh consequences, and even the owners take risks when contracting these services outside the law. The Contractors State License Board (CSLB) is warning consumers about the dangers of hiring unlicensed contractors following a disaster, whether it is earthquake, fire, flood or mudslide. The state’s regulations mandate that all contractors must have licenses, ensuring their competence and adherence to safety standards. Owners and general contractors hire unlicensed contractors in order to save money, because they can pay It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more. These consist of the following: Unlicensed electrical work creates fire and electric shock concerns How can I report unlicensed activity? This section explains how consumers, building officials and legitimate licensed contractors can report unlicensed activity. Feb 15, 2024 · It is a surprisingly common occurrence in California: a homeowner hires a contractor for a home improvement project, only to learn after it’s too late that the “contractor” is unlicensed. constitutes a cause for disciplinary action. Jun 21, 2001 · SACRAMENTO, Calif. Legal Action It is illegal for an unlicensed person to perform contracting work on any project for which a building permit is required, or employee labor is used, or the combined price of labor and materials is $1,000 or more. If you are a victim of these illegal activities, the California Landscape Contractors Association has some good news for you: There are several entities in state government that enforce laws pertaining to the underground economy (aka unlicensed contractors) in the construction and landscape maintenance industries. 5 an unlicensed worker performing services for which a license is required is not an independent contractor. May 20, 2021 · Having trouble with an unlicensed contractor? Learn about the laws about unlicensed contractors in California & Nevada at Heidari Law Group. The California Contractors State License Board (CSLB) has strict regulations in place to protect both contractors and consumers from the dangers of unlicensed work. From cost savings to legal risks, make an informed choice for a successful outcome. Find out everything you need to know about hiring unlicensed contractors in California now. The state requires HVAC contractors to hold the appropriate license to ensure compliance with safety and quality standards. Opting for an unlicensed contractor can carry substantial hazards and legal repercussions for both homeowners and contractors. Similarly, unlicensed contractors aren t allowed to hand out jobs to licensed contractors. They're also not allowed to bill for work done by an unlicensed sub or to include that work in any mechanic's lien. cslb. But if an individual wants to work under someone else’s license in California, it will be a whole different story. CSLB’S JURISDICTION Generally, complaints within CSLB’s jurisdiction involve alleged violations of California contractors state license law by licensed or unlicensed contractors for up to four years from the date of a suspected illegal act or omission. It is illegal for a person who is acting as a contractor, like a handyman, to charge more than $500 of permanent improvements to a property. Jan 9, 2025 · Yes, its illegal for a general contractor to hire or use unlicensed subcontractors in California. Be sure to get multiple bids and check references. In California, a homeowner is prohibited from hiring an unlicensed general contractor, or any type of contractor for the matter. It is a felony to contract without a license in a declared disaster area. Jul 18, 2024 · SANTA CLARA COUNTY – On July 9-10, 2024, the Contractors State License Board (CSLB) and Santa Clara County District Attorney’s Office conducted an undercover sting operation targeting unlicensed contractors. This guide by Dick Law Firm covers penalties, legal recourse, and advice for homeowners to ensure safe and compliant home repairs and renovations. I'm a homeowner and was told by an unlicensed roofer that he partners with a licensed contractor. An unlicensed contractor not only cannot complete a construction project, but the contractor is also forbidden from developing the blueprints for the project as well. Licensing Laws and Infractions Licensing laws for contractors are designed to protect Nov 5, 2023 · In California, it is against the law for a contractor to hire an unlicensed subcontractor. How can I report unlicensed activity? Contact SWIFT CSLB's Statewide Investigative Fraud Team (SWIFT) accepts complaints against unlicensed individuals actively working on a construction project which requires a building permit, or employee labor is used, or the combined cost for labor and materials is $1,000 or more and for any licensed contractor who fails to pull a required building permit Tips for Hiring a Contractor: A contractor is a person or company that offers services like construction, home remodeling, painting, paving, roofing, or electrical work to improve your home or property. , located in Palm Harbor, FL, provides Jan 22, 2014 · It's not illegal to hire unlicensed contractors, but the HOA would definitely want to make sure that the unlicensed contractors have general liability insurance as well as workers compensation insurance if they have employees, otherwise the HOA would be liable for damages if someone gets hurt. Without a proper license, a laborer cannot prove their rights to income in court, and they risk being prosecuted doing so. In that case, he would be required to have worker's compensation attorney. If an employee or independent contractor is harmed or injures another person, the Homeowners Liability or Workers' Compensation policy may provide compensation. According to the CSLB, any individual performing work valued at $500 or more in May 20, 2014 · In California under Insurance Code §2750. Knowing the steps to take when dealing with an unlicensed contractor is critical to mitigating risks and ensuring accountability. ” For further information or to report suspected unlicensed contractor activities, please visit the CSLB website at www. Do your research before hiring a contractor. gov or contact CSLB toll-free at 1-800-321-CSLB (2752). A general contractor can be subject to sanctions and fines for hiring an unlicensed subcontractor, and in cases of fraud or misrepresentation, a contractor may face criminal consequences. Sep 13, 2018 · By now you should be aware that it is illegal to operate as an unlicensed contractor in the state of California. In California, it is not explicitly illegal for a homeowner to hire an unlicensed contractor. In a breach of contract suit by the general, the fact that the sub was unlicensed will have no effect on your claim. But after you hand […] May 24, 2024 · It is illegal for a licensed construction contractor in California to knowingly hire an unlicensed independent subcontractor to perform a service for which a license is required as an independent contractor if the person hired does not hold a valid state contractor’s license or isn’t really an independent contractor under California law. This ranges from general contractors to landscapers, painters Mar 8, 2024 · Hiring an unlicensed contractor comes with several pros and cons. - "There are a lot of unlicensed people doing work in all of the trades, not just landscaping," said Larry Rohlfes, assistant executive director of the California Landscape Contractors Association (CLCA), Sacramento, Calif. Validity of We would like to show you a description here but the site won’t allow us. A contractor can, in theory, use unlicensed subs if he hires them as his employees. In California, both general contractors and subcontractors must be licensed, but suppliers, manufacturers California Business and Professions Code 7028 BP makes it a crime to work as a contractor without a valid license. Weigh risks before move forward. Dec 16, 2012 · In addition, any person who hires an illegal contractor to perform work that requires a license can bring a suit against the contractor for all payments made and the unlicensed contractor will have no legal recourse. But there’s a crucial legal topic every aspiring contractor must understand: the risks of working under someone else’s license. Many states explicitly invalidate liens filed by unlicensed contractors, giving property owners a clear path to challenge them in court. (Kim v. Property owners face consequences of using a contractor who is unlicensed. Dec 14, 2021 · In California, It is illegal for an unlicensed contractor to work on any construction project with a total value of more than $500. In California, the law is strict and prohibits hiring an unlicensed contractor, operating as an unlicensed contractor, or even working as an unlicensed contractor while employed by a third party. It is illegal to do HVAC work without a license in California, and those found in violation may face penalties. CSLB licenses contractors in 43 different classifications. Apr 5, 2023 · Finally, be sure to check your governing documents, and association insurance policies, both of which may require the association only hire licensed contractors. If an unlicensed subcontractor is hired, the contractor may be subject to sanctions and fines. ” (Business and Professions Code section 7118. Sep 13, 2018 · Is it worth it to hire an unlicensed contractor? Continue reading to find out the risks of hiring unlicensed contractors for home renovations. csqpfx xeo jgyja ifvegrp klnrp iofxxb sqlye swu rrmvwhw xfwm facfe ysi irqef nonp anpme