This is an aggregated quantity, meaning that it is for the total work or operation involved and not just for a part of a larger job or work that needs to be done. It is also against current law for a service provider to advertise construction works in a way that could mislead a person to believe that they have a contractor's license. This increase opens up legal opportunities for unlicensed technicians to get work and establishes a more realistic requirement for homeowners. This may not be a big change, but it's good to see at least something being relaxed to make it a little more reasonable for all of us. For now, let's say that in the current, renter-friendly court system, you don't want to face a judge who explains why you're taking shortcuts when hiring an unlicensed person to make a redress.
Unlicensed contractors who exceed this threshold may face significant fines and disciplinary actions or proceedings, even being charged with a misdemeanor. In addition, an unlicensed contractor cannot misrepresent the status of their license in an attempt to deceive consumers. Licensed contractors provide invaluable experience and legal protections that go far beyond the scope of basic maintenance personnel services. The new law doesn't allow an unlicensed contractor to do work if the work is part of a larger construction project or if the unlicensed contractor employs someone else to do or help with minor work.
Strict compliance is still required: landlords must ensure they comply with current law when hiring unlicensed service providers. This increased exemption for unlicensed contractors largely reflects economic reality, as the cost of construction materials and services has increased. While the increase in the threshold for working without a license represents a significant change, it maintains important consumer protections and recognizes the evolution of construction costs since the last adjustment in 1987. This comprehensive guide explores what this change means for licensed and unlicensed contractors in California. Of course, any unlicensed maintenance personnel doing work that legally requires credentials should be concerned about potential fines and criminal records.
This is why AB 2622 was enacted: to provide consumers with a greater opportunity to hire unlicensed contractors for smaller jobs, at potentially reduced costs, while allowing licensed contractors to focus their experience and qualifications on relatively more jobs costly and complex.
