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The $1,000 minor work exemption in California

By Contractor Lookout · Updated November 3, 2026

In California, someone without a contractor license can legally take a job only if the total price for labor, materials and everything else is less than $1,000, the work needs no building permit, and they do it without hiring anyone to help. Miss any one of those conditions and the job needs a licensed contractor.

The rule is Business and Professions Code section 7048, often called the minor work exemption or the handyman exemption.

The three conditions

All three must be true at the same time.

Condition What the law requires
Price The aggregate contract price for labor, materials and all other items is less than $1,000
Permit The work does not require a building permit
Workers The person does not employ anyone else to do or help with the work

The law also describes the work as “casual, minor, or inconsequential.” A $950 job that needs a permit doesn’t qualify. Neither does a $600 job where the handyman brings a paid helper.

The price includes materials

The $1,000 figure is the whole price, not just labor. If a handyman quotes $700 for labor and you’ll pay $400 for the fixture they buy, the job is $1,100 and needs a license.

Splitting a job doesn’t work

The exemption doesn’t cover work that is part of a larger project, whether one person does it or several. It also doesn’t apply when a job is broken into smaller contracts to get under the limit. Three $800 invoices for one bathroom remodel are one $2,400 job.

How the limit changed

The limit used to be $500. AB 2622 (Carrillo, Chapter 240, Statutes of 2024) raised it to $1,000, effective January 1, 2025. CSLB’s press release on the change describes the new limit as applying “if they do not hire workers and no building permits are needed.”

Section 7048 was amended again by AB 1170 (Chapter 67, Statutes of 2025), effective January 1, 2026. The current text, which we read on November 2, 2026, still says less than $1,000, no permit and no employees. We couldn’t confirm what AB 1170 changed in this section. If the details matter for your job, read the current statute on leginfo or check with CSLB.

The “not licensed” advertising rule

An unlicensed person can advertise small jobs, but only under one condition. Section 7027.2 says the ad must state that the person is not licensed under the Contractors State License Law. AB 2622 also amended this section, effective January 1, 2025.

So an honest handyman ad for small jobs will say something like “not a licensed contractor.” Section 7048 also says the exemption is lost if the person advertises as a contractor. An ad that calls the business a “contractor,” lists services that clearly need permits, or shows a license number that doesn’t exist is a red flag worth asking about.

How to tell whether your job qualifies

  1. Add up the full price. Include labor, materials, equipment, haul-away and any other charges. If it reaches $1,000, stop here. You need a licensed contractor.
  2. Ask your city or county whether the work needs a permit. If it does, the exemption doesn’t apply at any price.
  3. Ask who will do the work. If the person plans to bring an employee or helper, the exemption doesn’t apply.
  4. Think about the bigger project. If this is one piece of a larger remodel, the whole project counts.
  5. If any answer is no, look up a licensed contractor. Start with our search and confirm the license with CSLB. Our license check guide explains what to look for.

Why it matters to you

When you hire an unlicensed person for a job above the limit, you give up the checks a license makes possible. There’s no $25,000 contractor’s bond to look up, no workers’ comp record, no CSLB status to check and no classification that shows what the person is licensed to do.

Unlicensed contracting carries real penalties. Since July 1, 2026, CSLB citations for unlicensed work carry civil penalties from $1,500 to $15,000 under BPC 7028.7. Criminal penalties are separate. Our unlicensed contractor penalties guide covers both.

Licensed work under $1,000

You can hire a licensed contractor for a small job too. If you do for a home improvement job, the contract and payment rules apply. A written contract is required for home improvement work over $500, and the down payment is limited to $1,000 or 10% of the price, whichever is less. See our down payment guide and the hiring checklist.

For work in a trade that needs a specific license, match the class to the job. Electrical work calls for a C-10 Electrical license and plumbing for a C-36 Plumbing license. The license types index lists the others.

This is general information, not legal advice.

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