If you are having work done on your home, you often want to find balance between quality work and staying within your budget. So, when you have the choice between a handyman or a licensed contractor, who do you choose? Well, the answer actually depends on what kind of work you need done.
At the beginning on this year, the minor work license exemption increased from $500 to $1,000 per Assembly Bill 2622 (Carrillo, Chapter 240, Statutes of 2024). However, there is a caveat to this increase: the work cannot require a permit, and the unlicensed worker cannot hire anyone else to help on the project. A license is required even if the project would cost less than $1,000.
Homeowners should make sure that the minor work will not require any building permits and that the unlicensed individual is not using any workers for the duration of the project before entering any contracts. If the unlicensed individual provides a bid exceeding $1,000, performed unpermitted work, or hires workers, that individual is subject to legal action.
Existing advertising restrictions are still in effect; however,
- Unlicensed individuals can now advertise for work up to $1,000 (from $500) provided they disclose in the advertisement that they are not licensed.
- The minor work exemption rule does not apply to people who advertise they are licensed or qualified to act as contractors.
Source: California Manufactured Housing Institute
