CSLB Complaints: How to File and What to Expect in California
The Contractors State License Board (CSLB) is California’s regulatory agency responsible for licensing and disciplining contractors. Homeowners, subcontractors, and other parties can file a CSLB complaint for poor workmanship, project abandonment, unlicensed work, or financial harm. This guide covers how to file a complaint (online, by mail, or phone), what documentation to include, the investigation timeline, CSLB enforcement actions, and when a complaint alone is not enough—and you need a civil lawsuit to recover money. What Is the CSLB and What Does It Do? The Contractors State License Board (CSLB) is a regulatory board within the California Department of Consumer Affairs. Its primary mission is protecting the public by licensing and regulating contractors in the state. The CSLB issues and renews contractor licenses, investigates complaints against licensed and unlicensed contractors, takes disciplinary action against licensees who violate the law, and conducts enforcement operations against unlicensed operators. The CSLB has authority to investigate and take administrative disciplinary action against both licensed and unlicensed persons and entities for violations of the Contractors State License Law (Business and Professions Code §7000 et seq.). However, it is important to understand what the CSLB cannot do: it cannot award you monetary damages or order a contractor to pay you. Its enforcement power is regulatory—it disciplines contractors through license actions, fines, and referrals for criminal prosecution. When Should You File a CSLB Complaint? You should consider filing a CSLB complaint when you experience any of the following: Poor workmanship: The contractor performed work that does not meet building codes, contract specifications, or industry standards. Project abandonment: The contractor stopped work before completing the project and has not returned or communicated a timeline for completion. Unlicensed work: You discover that the contractor was not properly licensed for the type of work performed, or the license was expired or inactive during the project. License violations: The contractor engaged in deceptive advertising, failed to include their license number on contracts or advertisements, or violated home improvement contract requirements. Financial harm: The contractor took your money and failed to start or complete work, used substandard materials, or significantly overbilled for the work performed. Failure to pay subcontractors: You are a subcontractor or material supplier who has not been paid by a licensed contractor. Building code violations: The contractor performed work that violates California building codes or failed to obtain required permits. The CSLB prioritizes complaints involving threats to public health and safety. Complaints about structural defects, electrical hazards, or gas line issues typically receive the fastest response. How Do You File a CSLB Complaint? You can file a CSLB complaint through three channels: Online Filing Visit the CSLB website at cslb.ca.gov/consumers/filing_a_complaint and complete the online complaint form. Online complaints can be submitted anytime except between Sunday at 7:30 p.m. and Monday at 6:00 a.m. After submission, you will receive a confirmation and a PDF of your complaint form. If you are unsure whether your online complaint was submitted, call (800) 321-CSLB (2752) during business hours and press 324 to verify. Filing by Mail Download the Construction Complaint form from cslb.ca.gov, complete it, and mail it with supporting documentation to the appropriate CSLB office. For work performed in Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, or Ventura counties, mail to the Norwalk Intake and Mediation Center. For all other California counties, mail to the Sacramento Intake and Mediation Center. Filing by Phone Call 1-800-321-CSLB (2752) to request a complaint form be mailed to you. CSLB representatives are available Monday through Friday, 8 a.m. to 5 p.m. What Documentation Should You Include with Your CSLB Complaint? A well-documented complaint is more likely to receive prompt attention and lead to a successful outcome. Include copies (not originals) of the following: Written contract: All pages, front and back, including any change orders or amendments. Payment records: Cancelled checks (front and back), credit card statements, wire transfer confirmations, or receipts showing all payments made. Photographs: Before and after photos of the work, photos of defects or incomplete work, and photos of the work area. Timeline: A written chronology of events—when the contract was signed, when work started, key milestones, when problems arose, and all communications with the contractor. Correspondence: Emails, text messages, letters, and any written communication between you and the contractor. Permits and inspections: Copies of any building permits, inspection reports, or notices of violation. Contractor information: The contractor’s name, license number (if known), business address, phone number, and any advertising materials. Failure to provide complete documentation can delay the investigation. The CSLB does not accept CDs or flash drives—submit printed copies of all materials. What Happens After You File a CSLB Complaint? Once the CSLB receives your complaint, the following process typically unfolds: Written confirmation: The CSLB mails you a written acknowledgment that your complaint has been received. Contractor notification: The CSLB sends a notice to the contractor informing them of the complaint and encouraging resolution without further CSLB intervention. Mediation attempt: The CSLB’s Intake and Mediation Center (IMC) may attempt to mediate a resolution between you and the contractor through its free mediation program. Investigation: If mediation fails or the complaint warrants investigation, CSLB assigns an investigator who may inspect the work, interview parties, review documents, and consult with experts. Enforcement decision: Based on the investigation, the CSLB decides whether to take disciplinary action against the contractor’s license. Investigation timelines vary. Simple complaints may be resolved through mediation within 30-60 days. Complex cases can take six months to a year or longer. The CSLB prioritizes complaints based on order of receipt, severity, and available resources. What Enforcement Actions Can the CSLB Take? If the CSLB investigation confirms violations, it can impose a range of disciplinary actions: Enforcement Action Description License revocation Permanent removal of the contractor’s license License suspension Temporary suspension for a specified period Probation Contractor may continue working under monitored conditions Citations Formal notice of violation with corrective orders Civil penalties $200 to $15,000 per offense for unlicensed work Criminal referral Referral to district
Recovering Treble Damages from Unlicensed Contractors in California (2026 Update)
California law imposes severe penalties on unlicensed contractors, including mandatory disgorgement of all compensation paid under Business and Professions Code §7031(b), potential treble damages, criminal penalties (misdemeanor charges, fines up to $15,000, imprisonment), and civil penalties of $200 to $15,000 per offense. Property owners who hire an unlicensed contractor—even unknowingly—can recover all money paid. This guide explains every available remedy, how to calculate total recovery, key deadlines, and step-by-step guidance for pursuing a claim in 2026. What Is the Disgorgement Remedy Under B&P §7031(b)? Disgorgement is California’s most powerful remedy against unlicensed contractors. Under Business and Professions Code §7031(b), any person who uses the services of an unlicensed contractor may bring a lawsuit to recover all compensation paid to that contractor for performance of any act or contract requiring a license. The statute operates as both a “shield” and a “sword” for consumers. The reach of this remedy is sweeping. Courts have held that disgorgement applies to all compensation—including amounts paid for both labor and materials—regardless of whether the contractor’s work was satisfactory. Even if the property owner knew the contractor was unlicensed and encouraged the work, disgorgement remains available. California’s Supreme Court has ruled that unlicensed contractors remain subject to full disgorgement even if they were induced to enter the contract by a false promise to pay. Critically, the contractor need not have been completely unlicensed for disgorgement to apply. If the contractor was not properly licensed “at all times” during performance of the work, the full disgorgement remedy is triggered. Even a brief lapse in licensure—such as failure to renew on time or a temporary bond deficiency—can result in a contractor forfeiting all compensation received for the entire project. What Is the Substantial Compliance Exception? The one narrow escape hatch for contractors is the “substantial compliance” exception under B&P §7031(e). A contractor may argue at an evidentiary hearing that they were in substantial compliance with licensure requirements if they can demonstrate they had a valid license at some point, the lapse was inadvertent or technical in nature, and they acted promptly to correct the deficiency. However, courts have interpreted this exception very narrowly, and the burden is entirely on the contractor to prove compliance. What Are Treble Damages for Unlicensed Contractor Work? Beyond disgorgement, property owners may pursue additional damages when an unlicensed contractor’s work causes harm. Treble damages—meaning triple the actual damages suffered—may be available under several legal theories. California Civil Code §3345 provides for treble damages when a defendant targets a senior citizen or disabled person through unfair or deceptive practices. If an unlicensed contractor takes advantage of a vulnerable adult, the court can award up to three times the actual damages. Additionally, Business and Professions Code §17200 (California’s Unfair Competition Law) allows courts to order restitution for unlawful, unfair, or fraudulent business practices. Operating without a license constitutes an unlawful business practice, and courts may award enhanced remedies when the conduct is particularly egregious—such as when a contractor deliberately conceals their unlicensed status. What Criminal Penalties Do Unlicensed Contractors Face? California treats unlicensed contracting as a criminal offense under Business and Professions Code §7028. The penalties escalate with each subsequent violation. Offense Penalty Type Fine Jail Time First offense Misdemeanor Up to $5,000 Up to 6 months Second offense Misdemeanor 20% of contract price or $5,000 Mandatory 90 days Using another’s license Felony Varies State prison Disaster area fraud Felony Up to $10,000 Up to 3 years In addition to fines and incarceration, courts may order restitution to compensate victims for actual economic losses. The restitution obligation is separate from, and in addition to, the disgorgement remedy available in civil court. What Civil Penalties Can the CSLB Impose? The Contractors State License Board (CSLB) has authority to impose administrative civil penalties of $200 to $15,000 per offense against unlicensed contractors under Business and Professions Code §§7028.6, 7028.7, and 7028.13. The CSLB’s Statewide Investigative Fraud Team (SWIFT) proactively conducts undercover sting operations and construction site sweeps across California each week to identify licensing violations. SWIFT operations have resulted in hundreds of citations and arrests annually. In recent years, the CSLB has intensified enforcement in wildfire and disaster recovery zones, where unlicensed contractors frequently target vulnerable homeowners. Individuals caught contracting without a license in a state or federal natural disaster area face felony charges. The CSLB also revokes 400 to 500 licenses annually for egregious violations of the Contractors’ State License Law, and it maintains a public database of violators accessible through its website. How Do You Calculate Total Recovery Against an Unlicensed Contractor? The total recovery available to a property owner who hired an unlicensed contractor can be substantial. Here is how to calculate the potential recovery: Disgorgement: All compensation paid to the unlicensed contractor under B&P §7031(b), including payments for both labor and materials. Actual damages: The cost to repair or complete defective or unfinished work, including hiring a licensed contractor to redo the work. Treble damages: Up to three times actual damages if the contractor targeted a senior citizen or disabled person (Civil Code §3345), or enhanced remedies under the Unfair Competition Law (B&P §17200). Penalties: Criminal fines of up to $5,000-$15,000 per offense, plus administrative penalties of $200-$15,000. Attorney’s fees and costs: Recoverable in many unlicensed contractor actions, particularly under B&P §17200. For example, if you paid an unlicensed contractor $80,000 and suffered $30,000 in damages from defective work, your potential recovery could include $80,000 in disgorgement plus $30,000 in actual damages plus attorney’s fees—totaling well over $100,000 before any treble damages or penalty enhancements. What Is the Statute of Limitations for Disgorgement Claims? The statute of limitations for disgorgement claims under B&P §7031(b) is one year. This one-year clock begins to run from the date of completion or cessation of the contractor’s performance on the project—not from the date you discover the contractor was unlicensed. This is one of the most critical deadlines in California construction law. Two California appellate courts—in Eisenberg Village of Los Angeles Jewish Home for
What Happens If You Miss the Mechanic’s Lien Deadline in California?
Few moments in construction payment disputes are more stressful than realizing you may have missed—or already missed—the deadline to record a mechanic’s lien in California. The mechanic’s lien is one of the most powerful payment remedies available, and once the deadline passes, that specific right is gone. But it is not the end of the road. This article covers what happens when you miss the lien deadline and, more importantly, what other options remain available to you. What Are the Mechanic’s Lien Deadlines in California? Before examining what happens when you miss a deadline, it helps to understand the deadlines themselves. California’s mechanic’s lien deadlines are governed by Civil Code §§8412 and 8414. Recording Deadline (When You Must File the Lien) Scenario Direct Contractors Subcontractors & Suppliers No Notice of Completion filed 90 days after completion of the work of improvement 90 days after completion of the work of improvement Notice of Completion filed 60 days after recording of the Notice of Completion 30 days after recording of the Notice of Completion Important: “Completion” refers to the completion of the entire work of improvement, not just your individual scope of work. This is a critical distinction—the deadline may be later than you think if other trades are still working on the project. Enforcement Deadline (When You Must File a Lawsuit) After recording the mechanic’s lien, you must file a lawsuit to enforce it within 90 days of the recording date (Civil Code §8460). This is a separate, non-negotiable deadline. What Happens When You Miss the Recording Deadline? When the recording deadline passes without a mechanic’s lien being filed, the consequences are severe and permanent: The right to record a mechanic’s lien is lost. There is no extension, grace period, or retroactive filing. Once the deadline passes, the property can no longer be encumbered with your lien. No court can revive it. California lien law does not provide judges with discretion to extend missed deadlines. The right expires by operation of law. You lose your strongest leverage. Without a lien on the property, you can no longer threaten to cloud the title or force a sale. What Happens When You Miss the Enforcement Deadline? If you recorded a mechanic’s lien but failed to file a lawsuit to enforce it within 90 days: The lien expires by operation of law. Under Civil Code §8460, the lien becomes unenforceable after 90 days if no enforcement action is filed. The property owner can petition for removal. The owner may petition the court for an order releasing the lien under Civil Code §8480 et seq., and may recover attorney’s fees incurred in doing so. You may face liability. Maintaining an expired, unenforceable lien on the record could expose you to claims for wrongful lien or slander of title. Need Legal Guidance on Your Construction Dispute? Schedule a consultation with Bay Legal’s construction law team to discuss your specific situation. Call (650) 668-8000 or visit baylegal.com/practice-areas/construction-law/ What Are Your Options After Missing the Mechanic’s Lien Deadline? Missing the lien deadline is serious, but you are not without options. Several alternative remedies may still be available depending on your circumstances. 1. Stop Payment Notice A stop payment notice is a claim against construction funds held by the property owner or construction lender (Civil Code §8500 et seq.). It has different deadlines than the mechanic’s lien, and you may still have time to serve one even after the lien deadline passes. If a construction lender is involved and holds undisbursed funds, a bonded stop payment notice can be particularly effective. Read more about this remedy in our guide on stop payment notices vs. mechanic’s liens. 2. Payment Bond Claim If the project has a payment bond, you may file a claim against the bond. Payment bond claim deadlines differ from mechanic’s lien deadlines—typically, you have six months from the completion of the project or 30 days after a Notice of Completion is recorded. This is a longer window that may save your claim even after the lien deadline has passed. 3. Breach of Contract Lawsuit The underlying contract claim survives independently of the mechanic’s lien. If someone owes you money for work performed under a construction contract, you can still sue for breach of contract. The statute of limitations is four years for written contracts (Code of Civil Procedure §337) and two years for oral contracts (CCP §339). This is a much longer timeline than the 90-day lien period. 4. Unjust Enrichment and Quantum Meruit Even without a written contract, you may have a claim for unjust enrichment or quantum meruit—the reasonable value of the work you provided. If someone benefited from your labor or materials without paying for them, California law provides a remedy based on fairness, regardless of whether a formal contract existed. 5. Prompt Payment Penalties California’s prompt payment statutes (including B&P Code §7108.5) impose penalties on contractors who fail to pay subcontractors within specified timeframes. If you are a subcontractor who was not paid promptly by the general contractor, you may recover the amount owed plus a penalty of 2% per month on the unpaid amount, along with attorney’s fees. 6. Small Claims Court For smaller amounts, small claims court offers a faster, less expensive path to recovery. Individuals can sue for up to $10,000, and businesses can sue for up to $5,000 in California small claims court. No attorney is required, and the process moves quickly compared to a standard civil lawsuit. What Is the Notice of Completion Trap? One of the most common reasons contractors miss the lien deadline is the Notice of Completion. When a property owner records a Notice of Completion, the deadline for subcontractors and suppliers to record a lien shrinks from 90 days to just 30 days, and the deadline for direct contractors shrinks to 60 days. The owner is required to serve notice of the recording on all contractors and persons who served a preliminary notice (Civil Code §8190). However, this notification can
Stop Payment Notice vs. Mechanic’s Lien: Which Should You Use in California?
When a contractor, subcontractor, or material supplier isn’t getting paid on a California construction project, time is critical. Two of the most effective legal tools for securing payment are the mechanic’s lien and the stop payment notice. These remedies serve different purposes, target different assets, and carry different procedural requirements. Understanding which to use—and when—can make the difference between recovering what you’re owed and losing your rights entirely. What Is a Mechanic’s Lien in California? A mechanic’s lien is a claim recorded against the real property where work was performed. It “attaches” to the property itself, encumbering the title and making it difficult for the owner to sell or refinance until the lien is resolved. The mechanic’s lien is one of the oldest remedies in American law, rooted in the principle that those who improve real property should have a security interest in that property. Key characteristics of a California mechanic’s lien: It is a claim against the property, not against the project funds It is recorded with the County Recorder’s office in the county where the property is located It encumbers the property title, affecting the owner’s ability to sell or refinance It must be enforced by filing a lawsuit within 90 days of recording The lien is limited to the owner’s equity in the property What Is a Stop Payment Notice in California? A stop payment notice is a claim against construction funds. Rather than targeting the property, it directs the property owner or construction lender to withhold funds that are owed to the direct (general) contractor so that the claimant can be paid. It does not attach to or encumber the real property. Key characteristics of a California stop payment notice: It targets construction funds held by the owner or construction lender It is served directly on the owner and/or the construction lender—not filed with the county It does not encumber the property title When served on a construction lender, it may require a bond equal to 125% of the claim amount (a “bonded stop notice”) under Civil Code §8532 It can be used on both private and public construction projects (mechanic’s liens cannot be used on public projects) How Do Mechanic’s Liens and Stop Payment Notices Compare? The following table highlights the key differences between these two remedies: Feature Mechanic’s Lien Stop Payment Notice What it targets The real property itself Construction funds held by owner/lender Who can use it Contractors, subs, suppliers on private projects Contractors, subs, suppliers on private and public projects Effect Encumbers the property title Freezes payment to the general contractor Bonded version Owner may require release bond (125% of lien) Bonded stop notice required for construction lender (125% per Civil Code §8532) Filing/service Recorded at County Recorder’s office Served on owner and/or construction lender Enforcement deadline Lawsuit within 90 days of recording Lawsuit within 90 days of service (private works) Best used when Owner has equity and project is owner-funded Construction lender holds undisbursed funds Public works Not available Available When Should You Use a Mechanic’s Lien? A mechanic’s lien is typically the stronger remedy when: The project is owner-funded (no construction lender). Without a construction lender, there are no undisbursed loan funds for a stop payment notice to reach. The mechanic’s lien targets the property directly. The owner has significant equity in the property. The more equity the owner has, the more effective the lien becomes as leverage for settlement. You want maximum settlement leverage. A mechanic’s lien clouds the title, which creates urgency for the owner. Most owners will negotiate to clear a lien rather than risk complications with a sale or refinance. You have completed your work. A mechanic’s lien cannot be recorded while the lien claimant is still providing work on the project. When Should You Use a Stop Payment Notice? A stop payment notice is often the better tool when: The project has a construction lender. When a lender holds undisbursed construction loan funds, a bonded stop payment notice obligates the lender to withhold those funds, providing direct access to the money. You are a subcontractor and the general contractor is not paying you. A stop payment notice reaches “up the chain” to the owner or lender, bypassing the nonpaying general contractor. The property may lack sufficient equity. If the property is heavily leveraged, a mechanic’s lien may not yield meaningful recovery. Undisbursed loan funds may be a better target. Work is still ongoing. Unlike a mechanic’s lien, serving a stop payment notice does not require the claimant to cease work. You can secure your claim while continuing to perform under the contract. The project is a public work. Mechanic’s liens cannot be placed on public property. A stop payment notice is the primary statutory remedy for public projects. Need Legal Guidance on Your Construction Dispute? Schedule a consultation with Bay Legal’s construction law team to discuss your specific situation. Call (650) 668-8000 or visit baylegal.com/practice-areas/construction-law/ Can You Use Both a Mechanic’s Lien and a Stop Payment Notice? Yes—and in many cases, you should. These remedies are not mutually exclusive. Using both maximizes your leverage and protects against the risk that one remedy alone proves insufficient. For example, if you record a mechanic’s lien but the property turns out to have little equity, a stop payment notice may capture undisbursed loan funds. Conversely, if you serve a stop payment notice but the lender has already disbursed all funds, a mechanic’s lien ensures you still have a claim against the property. Do You Need a Preliminary Notice for Both Remedies? In most cases, yes. California law requires subcontractors, material suppliers, and others who do not have a direct contract with the property owner to serve a 20-day preliminary notice as a prerequisite to both mechanic’s lien and stop payment notice rights (Civil Code §8200). The preliminary notice must be served within 20 days of first furnishing labor or materials to the project. Failure to serve a timely preliminary notice can jeopardize both remedies.
Hired an Unlicensed Contractor in California? Know Your Legal Rights
Discovering that the contractor working on your home or property is unlicensed can be alarming. You may wonder whether the work is at risk, whether you have any recourse, and what your legal options are going forward. The good news is that California has some of the strongest consumer protection laws in the country when it comes to unlicensed contracting. This article walks you through everything you need to know about your legal rights when you’ve hired an unlicensed contractor in California. What Does California Law Require for Contractor Licensing? California’s contractor licensing scheme is governed by the Contractors’ State License Law, found in Business & Professions Code §7000 et seq. Under B&P Code §7028, performing contracting work without a valid license issued by the Contractors State License Board (CSLB) is a misdemeanor. This is not simply an administrative rule—it is a criminal offense. What Is the $500 Licensing Threshold? The licensing requirement kicks in when the total value of a project—including both labor and materials—reaches $500 or more. Under B&P Code §7048, work costing less than $500 that is casual, minor, or inconsequential is exempt from the licensing requirement. However, a contractor cannot break a larger project into smaller increments below $500 to circumvent licensing laws. The $500 threshold applies to the project as a whole. How Do You Check a Contractor’s License Status? Before hiring any contractor—and after, if you have concerns—you can verify license status through the CSLB’s online license lookup tool at www.cslb.ca.gov. The search will confirm whether a license is active, expired, suspended, or revoked, and whether the license classification covers the type of work being performed. Can You Get Your Money Back from an Unlicensed Contractor in California? Yes. Under Business & Professions Code §7031(b), a homeowner who hires an unlicensed contractor can sue to recover all compensation paid to the unlicensed contractor. This is known as the disgorgement remedy, and it is one of the most powerful tools available to California homeowners. The disgorgement remedy applies even if the work was performed flawlessly. Courts have consistently held that §7031 is designed to penalize unlicensed contracting, not to compensate for defective work. As the California Supreme Court confirmed in MW Erectors, Inc. v. Niederhauser Ornamental & Metal Works Co. (2005) 36 Cal.4th 412, the unlicensed contractor must return every dollar received—with no offset for the value of labor or materials provided. Key characteristics of the disgorgement remedy: All compensation paid is recoverable—including payments for both labor and materials The contractor cannot offset the value of work actually performed The remedy applies even if the homeowner knew the contractor was unlicensed Even a brief lapse in licensure during the project can trigger full disgorgement The statute of limitations is generally one year from the completion of work, per San Francisco CDC LLC v. Webcor Construction L.P. (2021) 62 Cal.App.5th 266 Need Legal Guidance on Your Construction Dispute? Schedule a consultation with Bay Legal’s construction law team to discuss your specific situation. Call (650) 668-8000 or visit baylegal.com/practice-areas/construction-law/ What Can an Unlicensed Contractor Not Do Under California Law? California law strips unlicensed contractors of virtually every legal tool for collecting payment. Specifically, an unlicensed contractor cannot: File a mechanic’s lien. California Civil Code §8400 requires that a claimant be duly licensed to record a mechanic’s lien. An unlicensed contractor has no lien rights against your property. Sue for payment on the contract. Under B&P Code §7031(a), an unlicensed contractor cannot bring or maintain any legal action to collect compensation for work requiring a license. Enforce the contract in any way. Courts treat contracts entered into by unlicensed contractors as void and unenforceable. Take a security interest. Under B&P Code §7031(c), any security interest taken to secure payment for unlicensed work is unenforceable. What Are the Criminal Penalties for Unlicensed Contracting in California? Unlicensed contracting is not just a civil matter—it is a criminal offense. Under Business & Professions Code §7028: Offense Jail Time Fine First conviction Up to 6 months in county jail Up to $5,000 Second conviction Mandatory 90 days minimum Up to 20% of contract price or $5,000 (whichever is greater) Third or subsequent 90 days to 1 year $5,000–$10,000 or 20% of contract price Are Homeowners Penalized for Hiring an Unlicensed Contractor? Generally, no. The criminal and civil penalties under California law fall squarely on the unlicensed contractor, not on the homeowner who hired them. The homeowner is treated as the victim of the unlicensed contracting activity and retains full access to the disgorgement and other civil remedies described above. What About Treble Damages and Increased Penalties Under SB 779? Under B&P Code §7160, if a homeowner was induced to enter a contract based on false or fraudulent representations by the contractor—such as falsely claiming to be licensed—the homeowner can recover a statutory penalty of $500 plus reasonable attorney’s fees in addition to actual damages. Senate Bill 779 (SB 779), which takes effect July 1, 2026, significantly increases civil penalties for unlicensed contracting. The minimum civil penalty rises from $200 to $1,500, with a maximum penalty of $15,000 for unlicensed contracting violations. For willful disregard of building laws (§7110), aiding or abetting unlicensed contracting (§7114), and entering into contracts with unlicensed contractors (§7118), the minimum penalty increases to $1,500 with a maximum of $30,000. These penalty amounts will also be adjusted for inflation every five years. What Are Common Unlicensed Contractor Scenarios in California? The Handyman Who Exceeds the $500 Limit A handyman can legally perform minor work valued under $500 without a license. But if a project grows beyond $500 in total labor and materials, the handyman is operating illegally. The handyman cannot artificially split the work into smaller jobs to avoid the threshold. If you paid $500 or more, you may have a disgorgement claim. The Contractor Whose License Expired Mid-Project A contractor who was licensed when hired but whose license lapsed or expired during the project is considered unlicensed for the period of lapse. Even a