What work requires a licensed contractor in California?
Any construction or improvement project in California where the combined cost of labor and materials is $1,000 or more must be performed by a CSLB-licensed contractor. That threshold rose from $500 to $1,000 on January 1, 2025 under Assembly Bill 2622. Below $1,000, a limited "minor work" exemption can apply.
Verified against CSLB on · reflects current CSLB rules and California law.
Summary — key takeaways
- Jobs of $1,000+ in combined labor and materials require a licensed contractor.
- The threshold rose from $500 to $1,000 on January 1, 2025 (AB 2622).
- The minor-work exemption (B&P §7048) is narrow and can't be split across a bigger job.
- Unlicensed minor-work providers must disclose they aren't licensed.
- Sources still citing $500 are out of date.
The $1,000 threshold (raised from $500 in 2025)
The rule comes from Business & Professions Code §7048, the minor-work exemption. As amended by Assembly Bill 2622, the exemption only covers jobs where labor and materials together are under $1,000. Many older articles still say $500 — that figure is out of date as of January 1, 2025.
How narrow the minor-work exemption is
The exemption is narrow. It does not apply if the work is part of a larger or divided project that totals $1,000 or more, and a person doing exempt minor work must state in their advertising and bids that they are not a licensed contractor. Certain trades and permitted work effectively require a license at any price.
Why hiring unlicensed above $1,000 is risky
When the job is $1,000 or more, hiring an unlicensed person is a real risk: you lose the protection of the bond and CSLB's complaint process, and you may take on liability for injuries. 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 from $500 to $1,000 in combined labor and materials. Sources citing $500 are out of date.
Can someone do work under $1,000 without a license?
Sometimes. The minor-work exemption in Business & Professions Code §7048 allows jobs under $1,000 in combined labor and materials, but only if the work isn't part of a larger project and the person discloses they're unlicensed. Many jobs still require a license regardless.
Does a small repair need a licensed contractor?
If the total labor and materials come to $1,000 or more, yes. If it's a genuinely minor, standalone job under $1,000, the §7048 exemption may apply — but the worker must disclose they're not licensed.
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