What work requires a licensed contractor in California?
Any construction or improvement project in California where the total price of labor, materials, and all other items is $1,000 or more must be performed by a CSLB-licensed contractor. The threshold rose from $500 on January 1, 2025 under Assembly Bill 2622, and a job priced at exactly $1,000 is over the line. Below $1,000, a narrow minor-work exemption can apply, but only when several conditions all hold at once.
Verified against CSLB on · reflects current CSLB rules and California law.
Summary — key takeaways
- Jobs where labor, materials, and all other items total $1,000 or more require a licensed contractor.
- The threshold rose from $500 to $1,000 on January 1, 2025 (AB 2622); a job at exactly $1,000 is not exempt.
- The minor-work exemption fails if the job needs a building permit of any kind or the person uses any helper.
- A bigger project can't be split into sub-$1,000 pieces to dodge the license law.
- Unlicensed minor-work providers must say in their advertising that they are not licensed.
The $1,000 threshold (raised from $500 in 2025)
The rule comes from Business & Professions Code §7048, the minor-work exemption, as raised by Assembly Bill 2622 effective January 1, 2025. The exemption only covers work where the aggregate price of labor, materials, and all other items for the whole undertaking is under $1,000; at $1,000 or above, a license is required. Many older articles still say $500, and some omit the conditions AB 2622 added, so treat anything citing $500 as out of date.
How narrow the minor-work exemption is
Every condition must hold at once. The work must be casual, minor, or inconsequential in nature. It must not require a building permit of any kind. The person doing it cannot employ or use anyone else on that job, even one helper. The work can't be part of a larger project, and a bigger job can't be divided into sub-$1,000 contracts to evade the law. Finally, an unlicensed person may only advertise for this kind of work if the ad discloses they are not licensed; advertising as a contractor kills the exemption. In practice, very few real jobs qualify.
Why hiring unlicensed above $1,000 is risky
When the job is $1,000 or more, hiring an unlicensed person carries real risk: you lose the protection of the $25,000 bond and CSLB's complaint process, and if a worker is hurt you could be asked to pay through your homeowner's insurance policy or face a lawsuit. For the contractor it's a misdemeanor, with administrative citations that now start at $1,500. Confirm an Active license and the right classification before work starts.
Frequently asked questions
Is the California contractor threshold $500 or $1,000?
$1,000 as of January 1, 2025. Assembly Bill 2622 raised the minor-work exemption so it covers only jobs where labor, materials, and all other items total under $1,000. Sources citing $500 are out of date.
Can someone do work under $1,000 without a license?
Sometimes. The exemption in Business & Professions Code §7048 applies only when the work is casual and minor, needs no building permit of any kind, isn't part of a larger project, and the person works entirely alone on that job and discloses in any advertising that they are not licensed. If any condition fails, a license is required even under $1,000.
Is a job that costs exactly $1,000 exempt?
No. The exemption applies only when the total price of labor, materials, and all other items is under $1,000. At exactly $1,000 or more, a licensed contractor is required.
Does a small repair need a licensed contractor?
If labor, materials, and all other items total $1,000 or more, yes. A genuinely minor standalone job under $1,000 can qualify for the §7048 exemption, but only if it needs no permit, involves no helpers, and isn't a slice of a larger project.
Can a big job be split into smaller ones to avoid needing a license?
No. Section 7048 measures the aggregate price of the whole undertaking, and it expressly denies the exemption where a project is divided into contracts under $1,000 to evade the license law.
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