Serious crime charges are brought against anyone. Serious crime charges are brought against anyone who illegally uses someone else's contractor license or who attempts to deceive consumers into believing that they are a licensed contractor. Anyone who contracts to work in a state or federal natural disaster area without an active state contractor license could also face felony charges. If convicted of a serious crime, a person may have to serve time in a state prison.
Both homeowners and unlicensed contractors must ensure compliance with California regulations when participating in construction projects. Obtaining a contractor license not only ensures compliance with state laws, but it also opens the door to increased income, legal protections, and professional growth. With new laws coming into effect in 2025, understanding when a contractor's license is needed and when it's not more important than ever for anyone preparing for the California licensing exam. Licensed contractors can establish partnerships with other professionals, including subcontractors and suppliers, which can generate more business.
As a business owner engaged in the construction industry, make sure that you and your employees comply with the new law and that your subcontractors are properly licensed under the CSLB when undertaking larger projects. Whether you're a maintenance worker looking to expand your business or if you're a qualified tradesman willing to undertake larger projects, obtaining a license is a worthwhile investment in your career. At the request of the construction industry, the State Contractors Licensing Board (CSLB) was created in 1929 to help raise construction standards through state regulation and thereby protect consumers. This applies whether you work as a sole proprietor, as part of a company, or under the direction of another contractor.
It provides consumers with additional affordability when undertaking small-scale construction and home improvement projects, while ensuring that consumers select authorized contractors with the experience and standards required for larger-scale construction projects. The cost of a state contractor license is a valuable and affordable investment in your professional career. A contractor license is a certification issued by the California State Contractors Licensing Board (CSLB). Licensing verifies that contractors have complied with state requirements, including technical qualifications, financial responsibility and compliance with legal regulations and of security.
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. For this reason, AB 2622 was enacted: to provide consumers with more opportunities to hire unlicensed contractors for smaller jobs, at potentially reduced costs, while allowing licensed contractors to focus their experience and qualifications on relatively more expensive and complex jobs. The new rules create a little more scope for maintenance workers and aspiring contractors, but the boundaries are clear.
