Handyman without licenses are permitted to do work valued at less than $500
Seven suspected unlicensed operators were caught during a Contractors State License Board (CSLB) sting in Calabasas on May 27, 2010, and CSLB is warning homeowners to be especially careful before hiring people for home improvement projects. The California Department of Toxic Substances Control and the Los Angeles County District Attorney’s Office assisted in the operation.
Members of CSLB’s Statewide Investigative Fraud Team (SWIFT) posed as homeowners and invited suspected unlicensed operators to bid on projects including painting, masonry, flooring, and tile work. When the suspects bid more than $500 for a job, they received a Notice to Appear (NTA) in Los Angeles County Superior Court to face misdemeanor charges of contracting without a license. California Business & Professions Code (B&P) requires a state contractor license for home improvement jobs valued at $500 or more in labor and materials. Some also face charges of illegal advertising and asking for an excessive down payment. B&P Code requires contractors to include their license number in all advertisements. Those without licenses are permitted to do work valued at less than $500, but must state that they are not licensed in their ads. It is also a violation of B&P Code to solicit a down payment larger than $1,000 or 10 percent of the contract, whichever is less. (There is an exception for about two dozen contractors who purchase special consumer protection bonds that are noted on CSLB’s website.)
“Unlicensed operators are part of a huge underground economy and may not be such a bargain for the homeowners who use them,” said CSLB Registrar Steve Sands. “Homeowners may end up paying twice for a job when they have to hire a licensed contractor to fix the problem.”
Homeowners seldom realize the risks they take when hiring illegal operators. Phony contractors never have workers’ compensation insurance, which means if a worker is hurt, the property owner could be liable. In addition, homeowners have little recourse if something goes wrong with the project.
“Some unlicensed operators deliberately target trusting and vulnerable people,” added Sands. “They can take your money and be gone before you realize what has happened.”
CSLB provides many helpful consumer publications that can be downloaded or ordered from the website: www.CheckTheLicenseFirst.com or www.cslb.ca.gov, or by calling, toll-free: 1-800-321-CSLB (2752).
CSLB urges consumers to remember the following tips when hiring a contractor:
- Be especially hesitant when approached by someone offering home improvement services door-to-door.
- Verify the contractor’s license by checking online at www.cslb.ca.gov, or via CSLB’s automated phone system at 1-800-321-CSLB (2752), and ask to see a photo identification to make sure you’re dealing with the correct person.
- Don’t pay more than 10% down or $1,000, whichever is less. There is an exception to this for about two dozen contractors who have special bonds for consumer protection that are noted on the CSLB website.
- Don’t pay in cash, and don’t let the payments get ahead of the work.
- Check references, and get at least 3 bids and a written contract before your project begins.