CSLB Sting Operation Exposes Unlicensed Contracting in San Jose

Sacramento, CA – The Contractors State License Board (CSLB) recently teamed up with the Santa Clara County District Attorney’s Office and the California Department of Insurance in an undercover sting in San Jose targeting unlicensed contractors.

In early August, 13 individuals received a Notice to Appear in criminal court for allegedly engaging in contracting activities without the required license. They submitted bids ranging from $3,700 for a paint job to $45,000 to install pavers. In California, a contractor’s license is required for any construction work exceeding $500 in value, including both materials and labor.

The individuals could face legal consequences including 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 face harsher penalties, including a mandatory 90-day jail sentence and a fine of $5,000 or 20 percent of the contract price – whichever is greater. 

Three individuals also requested an excessive down payment in their bids. California law limits contractors to requesting no more than 10 percent of the project cost or $1,000, whichever is less. Violating this law is a misdemeanor offense, punishable by fines up to $5,000, a potential one-year county jail sentence, or both.

Unlicensed contractors can also face charges for advertising construction services without the necessary license. Unlicensed individuals advertising contracting services in California must clearly disclose their lack of licensure and cannot bid on, or contract work, valued over $500.

“CSLB is dedicated to protecting homeowners from the risks associated with unlicensed contractors,” said CSLB Registrar David Fogt. “We are committed to continually educating consumers about the importance of hiring licensed contractors. We strongly urge California homeowners to verify a contractor’s license before starting any construction project.”