What are the risks of hiring an unlicensed contractor?
Hiring an unlicensed contractor for work of $1,000 or more leaves you unprotected: no contractor bond to claim against, no CSLB complaint process, and potential liability if a worker is injured on your property. Unlicensed contractors also can't sue to enforce payment — but that doesn't make the job safe or legal for you.
Verified against CSLB on · reflects current CSLB rules and California law.
Summary — key takeaways
- No $25,000 bond and no CSLB complaint process to fall back on.
- Possible liability if an uninsured worker is injured on your property.
- Work of $1,000+ without a license is illegal for the contractor (AB 2622).
- Recovering money for bad or unfinished work is much harder.
- Permits and insurance claims can be jeopardized.
You lose the bond and CSLB complaint process
You lose your safety net. Licensed contractors carry a $25,000 bond and are subject to CSLB's complaint and disciplinary process; with an unlicensed person you have neither, and recovering money for bad or unfinished work is much harder.
You can take on injury liability
You can take on liability. If an uninsured, unlicensed worker is injured on your property, you may be responsible for their medical costs — there's no workers' compensation coverage to fall back on.
It may not be legal
It may not be legal. Work of $1,000 or more in combined labor and materials must be done by a licensed contractor (raised from $500 on January 1, 2025 under Assembly Bill 2622). Unlicensed contracting is a violation that CSLB and law enforcement pursue, and permits and insurance claims can be jeopardized when the work wasn't done by a licensed contractor.
Frequently asked questions
Is it illegal to hire an unlicensed contractor in California?
Doing work of $1,000 or more without a license is illegal for the contractor. As the homeowner you're not usually penalized, but you lose the bond, the CSLB complaint process, and insurance protections — and may face liability if a worker is hurt.
What happens if an unlicensed worker is injured on my property?
Without workers' compensation coverage, you can be held responsible for their medical and disability costs. This is one of the biggest financial risks of hiring unlicensed.
Can I get my money back from an unlicensed contractor?
It's much harder. There's no contractor bond to claim against and no CSLB disciplinary leverage. Your options narrow to small-claims court or a civil suit, with no guarantee of recovery.
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