“Consumers can feel extremely vulnerable and sometimes intimidated when embarking upon home improvement projects that require hired assistance. Unlicensed contractors can take advantage of that and may not complete the work or follow code. These enforcement stings work to protect consumers and educate the public about the value of licensed contractors and the liabilities associated with hiring unlicensed contractors.”
CSLEA President Alan Barcelona
SAN JOSE – In early August 2024, the Contractors State License Board (CSLB) teamed up with the Santa Clara County District Attorney’s Office and the California Department of Insurance in an undercover sting in San Jose targeting unlicensed contractors.
During the operation, 13 people received a Notice to Appear in criminal court for allegedly engaging in contracting activities without the required license. They submitted bids ranging from $3,700 for a paint job to $45,000 to install pavers. In California, a contractor’s license is required for any construction work exceeding $500 in value, including both materials and labor.
The individuals could face legal consequences including administrative fines up to $15,000 and misdemeanor charges with sentences of up to six months in jail and a $5,000 criminal fine. Repeat offenders face harsher penalties, including a mandatory 90-day jail sentence and a fine of $5,000 or 20 percent of the contract price – whichever is greater.
Three individuals also requested an excessive down payment in their bids. California law limits contractors to requesting no more than 10 percent of the project cost or $1,000, whichever is less. Violating this law is a misdemeanor offense, punishable by fines up to $5,000, a potential one-year county jail sentence, or both.
Unlicensed contractors can also face charges for advertising construction services without the necessary license. Unlicensed individuals advertising contracting services in California must clearly disclose their lack of licensure and cannot bid on, or contract work, valued over $500.
