By Lam, Shun
On February 12, 2025, the Contractors State Licensing Board (CSLB) announced a joint operation with the Contra Costa County District Attorney’s Office and the San Mateo Police Department in an undercover sting. The operation identified 13 individuals who allegedly offered contracting services without a valid contractor’s license, with one suspect arrested on an outstanding warrant for contracting without a license in Santa Clara County.
Under current law, an unlicensed contractor must not bid or contract for work that is more than $1,000, which includes materials and labor. The bids involved in the sting operation ranged from $1,200 to $12,000 and involved bathroom remodels and painting project work. Current law requires all contractors to display their license numbers on business materials. It may only advertise jobs under $1,000, clearly state in all advertisements that they are not licensed, and provide worker’s compensation insurance for all job site employees. One individual failed to provide worker’s compensation insurance for their specific job site.
Those caught in this sting also face administrative or criminal charges for illegally advertising construction services without a valid license. Individuals cited could face 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 could face a mandatory 90-day jail sentence and a fine of $5,000 or 20% of the contract price, whichever is greater.
CSLB Registrar David Fogt stated, “CSLB remains committed to safeguarding homeowners from the dangers of hiring unlicensed contractors… educating consumers about the importance of working with licensed professionals is a top priority. We strongly encourage all California homeowners to verify a contractor’s license before beginning any construction project.” Further, Contra Costa District Diana Becton said, “Unlicensed contractors, or contractors who do not carry workers’ compensation insurance, put homeowners at risk of financial and safety hazards.”
This operation comes after CSLB’s January 17, 2025, publication urging homeowners to hire licensed contractors following the Southern California Wildfires. “After a disaster, homeowners are vulnerable to scams and poor workmanship,” said CSLB Registrar David Fogt. “Licensed contractors have proven qualifications that help ensure they can perform safe and reliable work.”
CSLB, under the umbrella of the Department of Consumer Affairs (DCA), licenses and regulates roughly 285,000 contractors across California. Unlicensed contractors may attempt to take advantage of families in dire straits after disasters such as wildfires and floods by charging excessive down payments and inflating labor and/or material costs. Hiring unlicensed contractors places homeowners at significant risk as they usually don’t carry worker’s compensation insurance.
For more information or to report suspected unlicensed contractor activities, please visit the CSLB website or contact CSLB toll-free at 1-800-321-2752.