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California will double the maximum cost of home improvement projects that can be performed without a contractor's license, raising the threshold from $500 to $1,000 starting Jan. 1, 2025.
The change comes through Assembly Bill 2622, marking the first adjustment to the limit since 1987. The California Contractors State License Board (CSLB) will oversee the implementation of the new regulations.
The increased threshold applies only to basic repair and maintenance work that does not require building permits. Projects involving electrical, plumbing, structural modifications, or those requiring permits must still be performed by licensed contractors regardless of cost.
Under the updated rules, unlicensed workers must complete projects individually without hiring additional help. The $1,000 limit encompasses all costs, including labor, materials, and other expenses.
Industry experts note the adjustment accounts for decades of inflation in construction costs while maintaining consumer protections. The original $500 limit had remained unchanged for 37 years despite rising material and labor expenses.
The law preserves key restrictions on unlicensed work. Projects affecting building safety or requiring permits must use licensed professionals. This includes electrical systems, plumbing modifications, and structural changes regardless of cost.
Licensed contractors retain advantages, including taking on projects of any size, pulling necessary permits, and accessing state mediation services for dispute resolution. Their work also carries insurance coverage and warranty protections unavailable to unlicensed providers.
The CSLB will monitor consumer complaints between $500 and $1,000 to evaluate the impact of the increased threshold. The board's Statewide Investigative Fraud Team continues enforcement operations against unlicensed contractors operating outside legal limits.
The legislation maintains existing consumer protection measures. Down payments cannot exceed 10 percent of the total contract price, and subsequent payments must align with completed work and delivered materials.
Unlicensed workers can advertise their services but must disclose their unlicensed status. The law prohibits them from misrepresenting qualifications or operating beyond the scope of basic maintenance and repairs.
Administrative penalties for violations range from $200 to $15,000, depending on severity and previous offenses. The CSLB can also pursue criminal charges resulting in fines up to $5,000 and jail sentences up to six months.
The change affects California's large construction industry while aiming to balance consumer access to basic repair services with safety requirements.
The law maintains core principles protecting both consumers and professionals. Projects involving safety systems or structural elements require licensed contractors with verified training and expertise.
CSLB officials emphasize that consumers should verify contractor licenses and pull appropriate permits before starting projects. The board provides online resources for checking license status and understanding project requirements.
The increased threshold takes effect on Jan. 1, 2025, giving industry participants time to adjust operations and ensure compliance with the updated regulations.
