“The goal of these undercover operations is to educate the public and to prevent unlicensed contractors from putting consumers at risk by performing home improvement work without having passed the necessary state tests and background checks.” – CSLEA President Alan Barcelona
SACRAMENTO–On September 27, 2023, the Contractors State License Board (CSLB) announced the results of a series of September undercover sting operations conducted in Yolo and Tulare counties. The goal was to put a stop to unlicensed contractors operating within Yolo and Tulare counties.
Assisting with the operations were the Yolo County District Attorney’s Office, the Tulare County District Attorney’s Office, and the California Department of Insurance.
Investigators cited 14 people who will now have to appear in criminal court for allegedly operating without a required contractor’s license. Those individuals now face potential legal ramifications that include substantial fines and possible jail time.
Each suspected unlicensed contractor provided bids that exceeded the legal limit of $500 for unlicensed contracting practices, with estimates ranging from $1,200 for a flooring job up to $13,000 for concrete work. In California, it is illegal to bid on or undertake a construction project valued over $500, including labor and materials, without an appropriate license.
The concrete bid also included a down payment request of $5,000, well above the legal limit, and other suspects requested excessive down payments before work began. According to California law, contractors should only request a maximum of 10% of the home improvement project’s total cost or $1,000, whichever amount is less. Violation of this condition is a misdemeanor, and penalties may include fines up to $5,000 or one year in jail — or both.
The suspects may face additional charges due to unlawful advertisement practices. All licensed contractors are required to display their license number on all materials related to their business, such as advertisements, vehicles, and business cards.
Non-compliance with this requirement could result in a first-time offense fine of up to $1,000.
In addition, four stop work orders were issued during the operation, halting work at job sites where contractors failed to provide workers’ compensation insurance for their employees.
