California Raises Threshold for Unlicensed Home Improvement Projects
Starting in 2025, California will increase the amount of money that can be charged for home improvement projects by an unlicensed person without a contractor’s license. The new threshold will move up from $500 to $1,000, according to the California Contractors State License Board (CSLB).
New Threshold and Requirements
Under the changes, an unlicensed person can complete a project that is up to $1,000 as long as they do not hire workers and no building permit is necessary. Once either of those applies, the job can only be done by a licensed contractor.
Complete Price of Labor and Materials
The $1,000 total must be the complete price of labor, materials, and all other items associated with a project. The person can also advertise the rate, but they must state that they do not have a license.
Penalties for Unlicensed Contractors
State officials regularly conduct sting operations against unlicensed contractors. If an unlicensed person quotes a project for more than $1,000 or performs work without the necessary permits or hires workers, they can face legal action, with penalties including fines of up to $15,000 and mandatory jail sentences for repeat offenders.
Consumer Protection Reminders
The CSLB reminds Californians that down payments on home improvement projects should not exceed 10 percent of the contract price, and that any later payments should not be more than the value of the work completed and materials delivered.
Conclusion
The new law aims to improve affordability and help residents save money by allowing unlicensed individuals to complete smaller projects without the need for a contractor’s license. However, it is essential for consumers to be aware of the new threshold and requirements to avoid potential legal issues and ensure their protection.
FAQs
Q: What is the new threshold for unlicensed home improvement projects in California?
A: The new threshold is $1,000, up from $500.
Q: What are the requirements for unlicensed individuals to complete a project under the new threshold?
A: The project must not require a building permit, and the individual must not hire workers.
Q: Can unlicensed individuals advertise their rates under the new threshold?
A: Yes, but they must state that they do not have a contractor’s license.
Q: What are the penalties for unlicensed contractors who violate the new law?
A: Fines of up to $15,000 and mandatory jail sentences for repeat offenders.
Q: What are the consumer protection reminders for home improvement projects in California?
A: Down payments should not exceed 10 percent of the contract price, and later payments should not be more than the value of the work completed and materials delivered.
