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What is illegal contractor activity?

This section describes illegal contracting and the programs CSLB has in place to combat the activity.

Who is considered an illegal contractor?

It is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in labor and materials. Besides being illegal, unlicensed contractors lack accountability and have a high rate of involvement in construction scams. They also are unfair competition for licensed contractors who operate with bonds, insurance and other responsible business practices.

What is the CSLB doing to stop illegal activity?

The Statewide Investigative Fraud Team (SWIFT) is set up to monitor and combat illegal activity. SWIFT has teams around the state that conduct stings on a regular basis and sweep construction sites.

SWIFT also conducts joint operations and sweeps with other state agencies dedicated to combating underground activity. The partnerships with other agencies raise the penalties and fines for violators by increasing the scope of violations to include taxes, illegal payrolls, workers compensation and worker safety.