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Major Reasons for Suspension and How to Reinstate Your License

Bonds
Reasons for Suspension How to Reinstate Your License
  • Your surety company cancels one or more of your required bonds.
  • The voting stock of the RMO for a corporate license is less than 10 percent of the total voting stock.
  • A judgment or payment of claim reduces the amount of any required bond.
  • You fail to maintain a disciplinary bond or cash deposit in full force and in full effect for the required amount of time.
  • The surety company must send a "rescission of cancellation notice" to CSLB.
  • You must obtain a new bond and submit it to CSLB within 90 days of the date that the new bond becomes effective, or within 90 days of the date the old bond is canceled.
Workers' Compensation Insurance
Reasons for Suspension How to Reinstate Your License
  • Your workers' compensation insurance company cancels your policy.
  • Your workers' compensation insurance policy expired.
  • You have no employees subject to California workers' compensation laws.
  • The insurance company must send a "reinstatement notice" to CSLB to rescind the cancellation.
  • The insurance company must send a "renewal notice" if the policy has expired.
  • You must submit an exemption statement to CSLB.
Civil Court Judgments
Reasons for Suspension How to Reinstate Your License
  • You fail to report the judgment to CSLB within 90 days and before it gets reported by another entity.
  • You fail to resolve a civil court judgment within 90 days from the date of the notice to resolve the judgment.
  • You must resolve the judgment by paying the full amount; or
  • You can make payments as long as you submit a written agreement to CSLB; it must be signed by you and the judgment creditor.
Changes in Personnel
Reasons for Suspension How to Reinstate Your License
  • You fail to replace a disassociated RMO or RME within 90 days of the date of disassociation.
  • You may petition the Registrar for reconsideration if you dispute the date of disassociation on which the suspension was based.
Contractors License Law
Reasons for Suspension How to Reinstate Your License
  • You violate the Contractors License Law.
  • The firm must file a disciplinary bond with the Registrar.
Outstanding Liabilities
Reasons for Suspension How to Reinstate Your License
  • You fail to submit the appropriate proof of resolution to CSLB within 60 days of notification of an outstanding liability.
  • Submit all necessary documentation to show resolution of the liability to the CSLB Judgment Unit.
Joint Venture License
Reasons for Suspension How to Reinstate Your License
  • If any of the member licenses ceases to be active and in good standing, the joint venture license will be suspended.
  • Make sure each license included in the joint venture is current, active, and in good standing.

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A suspended license may be renewed as active or inactive. However, you may not contract for work with an inactive or suspended license and you will not be issued a wall or pocket license. If you wish to contract for work, you must clear the suspension(s) before your license can be renewed as active. See Business and Professions Code sections 7140 – 7145 and California Code of Regulations section 853.

Contractors
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