CSLB Cracks Down on Unlicensed Contractors in Orange County

Sacramento, CA (June 14,2023) – The Contractors State License Board (CSLB) joined forces with the California Department of Insurance (CDI) to conduct a successful undercover operation aimed at targeting unlicensed contractors in southern Orange County.

The operation, conducted on May 31 and June 1, 2023, resulted in eight individuals receiving Notices to Appear in criminal court for allegedly engaging in contracting activities without the required license. Four other individuals will be referred to the Orange County District Attorney for similar violations because they provided bids after leaving the construction site. These offenders now face legal consequences, including substantial fines and potential jail time.

During this planned sting operation, CSLB and law enforcement officials identified and cited eight individuals for submitting bids that exceeded the legal limit of $500. The bid amounts ranged from $7,500 to an alarming $36,000 for a painting job at the property. In accordance with California contractor state license laws, bidding and/or contracting for construction work that exceeds $500 in value requires a contractor’s license. Engaging in contracting work without a valid license is considered a misdemeanor offense in California, carrying substantial penalties that include fines up to $15,000 and potential jail time. CSLB remains focused in its mission to enforce these laws, ensuring the protection of consumers from unscrupulous individuals involved in unlicensed contracting activities.

Moreover, the unlicensed contractors apprehended in this operation may face additional charges for advertising their construction services without possessing the necessary license. According to California law, it is illegal for anyone to advertise construction or home improvement work without a valid license in the advertised classification. In instances where contracting services are advertised by unlicensed individuals, the advertisement must explicitly state their lack of licensure. Even with this disclosure, an unlicensed individual is limited to providing bids and performing work for projects valued at less than $500, inclusive of materials and labor.

“CSLB remains committed to safeguarding homeowners from the perils associated with unlicensed contractors,” emphasized David Fogt, CSLB Registrar. “We continually strive to educate consumers about the importance of hiring licensed contractors and strongly urge homeowners to take a few moments to verify a contractor’s license before proceeding with any construction project in California.”

During the operation, it was discovered that some of the individuals demanded excessive down payments before commencing work. Under California law, contractors are strictly limited to requesting no more than 10% of the project cost or $1,000, whichever is less. Violating this provision constitutes a misdemeanor offense, punishable by substantial fines of up to $5,000 or a potential one-year county jail sentence, or both.

CSLB, CDI — which provided law enforcement backup for the sting — and other agencies around the state will continue to collaborate in their ongoing efforts to combat unlicensed contracting activities, ensuring the safety and welfare of California’s homeowners. Together, they will continue to vigilantly enforce the law, promote consumer protection, and maintain the integrity of the construction industry.

For further information or to report suspected unlicensed contractor activities, please visit the CSLB website at www.cslb.ca.gov or contact CSLB toll-free at 1-800-321-CSLB (2752). Consumers are encouraged to check the license status of contractors before hiring them for any construction projects.

For ongoing information and updates from CSLB, connect with us on Facebook, Twitter, Instagram, and YouTube.