SACRAMENTO, CA – The Contractors State License Board (CSLB) recently completed a statewide series of stings and sweeps targeting unlicensed activity in the construction industry. The effort was part of a multi-agency effort organized by the National Association of State Contractors Licensing Agencies (NASCLA).
The stings and sweeps resulted in 119 legal actions, largely for unlicensed contracting and illegal advertising. Unlicensed contracting puts consumers at risk in many ways, including failure to meet minimum competency requirements and the lack of a contractor’s bond or workers’ compensation insurance.
Over two weeks, CSLB joined forces with local law enforcement to conduct three undercover sting operations in San Joaquin, Kern, and San Diego counties. Investigators contacted the suspects through their advertisements. Unlicensed individuals can only advertise for jobs valued at under $1,000 and must clearly disclose that they are not licensed.
During the stings, suspected unlicensed individuals arrived at designated locations to bid on various projects, including demolition, fencing, flooring, masonry, painting, sand and water blasting, concrete, tree removal, landscaping, solar, and kitchen and bathroom remodeling. As a result, 19 administrative legal actions were filed, and 26 individuals will be referred to district attorney’s offices for review and possible prosecution for contracting without a license.
The individuals involved submitted bids ranging from $1,000 to $46,000. California laws prohibit unlicensed contractors from bidding and/or contracting on any project that requires a building permit or where employee labor is used, or when the project is valued at $1,000 or more in combined labor and material costs. All may now face legal consequences, which can include substantial fines and potential jail time.
Forty-six sweep operations were conducted in 17 counties, and included 454 site visits, 28 cases referred to local district attorneys, 9 licensee citations, 24 non-licensee citations, 13 Letters of Admonishment, 27 stop work orders, and 99 advisory notices.
During the stings and sweeps, several individuals requested an excessive down payment. It is illegal in California for a home improvement project’s down payment to exceed 10 percent of the contract total or $1,000, whichever is less. This misdemeanor charge carries a maximum penalty of six months in jail and/or a fine of up to $5,000. Subsequent payments cannot exceed the value of the work being performed or materials delivered.
“Nationwide enforcement operations such as the NASCLA coordinated enforcement effort are vital in educating consumers about the risks of not checking a contractor’s license and deterring unlicensed/unqualified practice,” said CSLB Registrar David Fogt. “It only takes a few seconds to verify a contractor’s license information on CSLB’s website.”
Unlicensed individuals cited during the operations were provided with information on how to obtain a license and were invited to attend one of CSLB’s Get Licensed to Build workshops.
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). For ongoing information and updates from CSLB, connect with us on Facebook, X, Instagram, and YouTube.
About CSLB:
CSLB operates under the umbrella of the Department of Consumer Affairs and licenses and regulates about 285,000 contractors in California.