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Penalties for unlicensed contracting in California

By Contractor Lookout · Updated November 3, 2026

In California, a first conviction for contracting without a license can bring up to 6 months in county jail, a fine of up to $5,000, or both, and penalties climb for repeat offenses. Separately, CSLB can issue a citation with a civil penalty of $1,500 to $15,000.

The criminal penalties are in Business and Professions Code section 7028. The citation penalties are in section 7028.7.

Criminal penalties under BPC 7028

Offense Fine Jail
First Up to $5,000 Up to 6 months in county jail (fine, jail or both)
Second The greater of 20% of the contract price, 20% of payments received, or $5,000 Not less than 90 days, except in an unusual case where a lesser sentence serves justice
Third or later From $5,000 up to the greater of $10,000 or 20% of the contract price or payments received 90 days to 1 year

The current text of 7028 dates to SB 315, effective January 1, 2015.

CSLB’s December 2024 press release on AB 2622 sums it up this way: repeat offenders “may face a mandatory 90-day jail sentence and a fine of $5,000 or 20 percent of the contract price, whichever is greater.” The 90-day minimum applies starting with the second offense, and the statute allows a shorter sentence in an unusual case.

Citations under BPC 7028.7

A citation is a civil penalty, separate from any criminal case. Under the current version of 7028.7, the civil penalty is “not less than fifteen hundred dollars ($1,500) nor more than fifteen thousand dollars ($15,000).”

That version was added by SB 779 (Chapter 233, Statutes of 2025). It took effect January 1, 2026, and became operative on July 1, 2026. So the $1,500 to $15,000 range is the one in force since July 1, 2026.

Citations can also reach home improvement salespeople. Under BPC 7153, selling home improvement work without a current HIS registration is a misdemeanor, and citations are possible under 7028.7. See our HIS registration guide.

Who counts as unlicensed

A person is contracting without a license when the job needs a license and they don’t have one. Under the minor work exemption in BPC 7048, a license isn’t needed only when all of these are true:

The exemption doesn’t cover work that’s part of a larger project or that’s split into smaller contracts to get under the limit. It’s also lost if the person advertises as a contractor. An unlicensed person advertising minor work must say in the ad that they’re not licensed (BPC 7027.2). Our minor work exemption guide covers the details.

The limit was $500 until AB 2622 raised it to $1,000, effective January 1, 2025.

A license that’s suspended or doesn’t fit the job

Licensed doesn’t always mean licensed for your job. Two situations to watch for:

How to protect yourself

  1. Price the whole job. If it’s $1,000 or more, needs a permit, or will use helpers, hire a licensed contractor.
  2. Get the license number and look it up. Use our search and confirm on CSLB’s Instant License Check. Our data is a weekly file, so the live record is the final word.
  3. Match the license to the person. Ask for the pocket license and a photo ID.
  4. Check the class against the job.
  5. Keep the paper trail. Ads, business cards, texts and receipts all help if you need to file a complaint later.

Our license check guide walks through each step.

Reporting unlicensed work

If someone did contractor work for you without a required license, you can report it to CSLB. See how to file a complaint with CSLB. CSLB can pursue a citation, but it can’t recover money for you.

This is general information, not legal advice.

Sources

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