Basic Facts About Contracting in California

• Anyone performing construction work in California that totals $500 dollars or more in labor and materials must be licensed by CSLB.
• The construction industry is one the largest industries in California. www.labormarketinfo.edd.ca.gov
• Licensed contractors must demonstrate at least four years of experience/education in the trade for which they are licensed, be fingerprinted, have an FBI background check, and be bonded.
• CSLB's Statewide Investigative Fraud Team (SWIFT) conducts stings and sweeps somewhere in California each week.
• Unlicensed contractors are part of the $60-140 billion underground economy that does not pay taxes, insurance, or follow safety laws. www.dir.ca.gov/LETF/LETF.html
• First-time offenders often are issued a Notice to Appear (NTA) for misdemeanor charges of contracting without a license or illegal advertising. The NTA carries a maximum penalty of six months in jail and/or up to a $5,000 fine.
• Additional convictions raise the fines to $10,000 and a mandatory 90-day jail sentence.

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