Unlicensed Contractor Red Flags in California

A friendly handyman offers to fix your roof for half of what the roofing companies quoted. He has a truck, some ladders and good reviews from neighbors. What he may not have is a California contractor license, and on a roof that matters more than almost anywhere else on your house.

This guide walks through the unlicensed contractor red flags that show up most often on roofing jobs, what "unlicensed" actually means under CSLB rules, what you risk by hiring one, and how to report an unlicensed contractor in California. It takes a few minutes to check, and you should do it before you sign.

What counts as an unlicensed contractor in California?

In California, anyone who does construction work worth $1,000 or more in labor and materials needs a license from the Contractors State License Board (CSLB). Roofing work calls for the C-39 roofing classification, or a general B license on a bigger project with more than one trade.

An unlicensed contractor is not only someone who never had a license. A roofer can also be working without a valid license when the license is:

• Expired. The contractor did not renew it.
• Inactive. The holder put it on hold and may not contract for work.
• Suspended. Often for a missing bond, missing workers' comp, or an unpaid judgment.
• In a different name. The license belongs to another person or company than the one on your contract.

Each of these shows on the CSLB record. Here is how to check a contractor's license in California, step by step.

Source: Business and Professions Code §7028; CSLB license status definitions

Can a handyman do roof repair without a license?

Only for very small jobs. California's $1,000 minor work exemption lets an unlicensed person do a job if all of these are true:

• The total price for labor, materials and everything else is under $1,000.
• The work does not need a building permit.
• The person works alone and does not hire anyone to help.
• The job is not one piece of a bigger project split up to stay under the limit.

That rules out a re-roof every time. A roof replacement costs far more than $1,000 and needs a permit in California cities and counties. Even handyman roof repair on a few shingles crosses the line once it passes $1,000 or the handyman brings a helper. An unlicensed person who advertises must also say in the ad that they are not licensed.

Source: Business and Professions Code §7048 and §7027.2; CSLB Industry Bulletin 24-07 (AB 2622)

Unlicensed contractor red flags to watch for

None of these proves a roofer is unlicensed. Each is a reason to stop and look up the record before you sign.

• No license number on the bid, card, truck or ads. California requires licensed contractors to show their license number in advertising and on contracts.
• Cash only, or "pay me directly." Cash leaves no record, and that is often the point.
• "You pull the permit." Asking the homeowner to take out an owner-builder permit makes you legally responsible for the job, the crew and the inspections.
• "No permit needed." A full roof replacement needs one. A roofer who says otherwise is skipping the inspection or does not want the city to see the job.
• A big deposit. On a home improvement job, the deposit can't be more than $1,000 or 10 percent of the price, whichever is less. See how much a roofer can ask for a deposit.
• A price far below every other bid. No license often means no bond and no workers' comp, which is part of how the price gets so low.
• A name that keeps changing. The company on the truck, the contract and the payment do not match.

Source: Business and Professions Code §7030.5 and §7159.5; CSLB consumer guide, Hire a Licensed Contractor

"What is your California contractor license number, and is it in the same name as this contract?"

Is my contractor licensed? How to check in five minutes

If you are asking "is my contractor licensed," the CSLB lookup answers it. Ask for the license number, then confirm four things on the record:

• The status reads active, not expired, inactive or suspended.
• The name and address match the bid you were handed.
• The classification includes C-39 roofing, or B for a general contractor.
• Workers' comp is on file, or the exemption makes sense for the crew you will see. Read does your roofer need workers' comp.

Also look at who qualifies the license. If that person has never met the crew, the license may be rented. Our article on what an RMO is explains why that matters.

What you risk when you hire an unlicensed roofer

The price may be lower, but the risk lands on you, the homeowner.

• No license bond. A licensed contractor carries a $25,000 bond that homeowners can claim against for license law violations. An unlicensed contractor has none.
• No workers' comp. If a worker falls from your roof, you may be sued for the injury, and your homeowner's insurance may not cover it.
• No permit or inspection. Unpermitted work can cause trouble when you sell or file an insurance claim.
• Little leverage. CSLB can cite and prosecute an unlicensed contractor, but it can't revoke a license that never existed.

Source: CSLB, Bond Requirements (SB 607); CSLB consumer guide, Hire a Licensed Contractor

That is a big part of why "licensed and insured" is the first thing to confirm, not the last.

Penalties for unlicensed contracting in California

California treats this seriously.

• First conviction: a misdemeanor, with a fine of up to $5,000, up to six months in county jail, or both.
• Second conviction: at least 90 days in jail and a fine of 20 percent of the contract price or $5,000, whichever is greater.
• CSLB citations: administrative fines on top of any criminal case.
• Declared disaster areas: contracting without a license there can be charged as a felony.

Source: Business and Professions Code §7028 and §7028.16; California Code of Regulations, Title 16, §884

There is also a contract rule that helps homeowners. An unlicensed contractor generally can't sue you to collect payment for work that required a license, and a person who paid one may be able to recover what they paid. Talk to an attorney before you rely on that, since the details matter.

Source: Business and Professions Code §7031

How to report an unlicensed contractor in California

CSLB takes complaints about unlicensed contractors as well as licensed ones, for up to four years from the act. Pick the form that fits:

• You signed a contract with them: use the CSLB complaint form, online or on paper.
• The job is going on now: use the Lead Referral form with the job site address.
• You saw an ad: use the Advertising Complaint form.
• No permit was pulled: use the Building Permit Violation Referral form.

Keep copies of the bid, texts, payment records and photos of the truck or ads. CSLB can also be reached at 800-321-CSLB (2752).

Source: CSLB, Filing a Construction Complaint

If something has already gone wrong on your roof, our guide on what to do when a roofer does a bad job covers the next steps.

Check the record before you sign

The simplest defense against an unlicensed contractor is a lookup. If you'd rather not dig through records yourself, a ConFacts report reads the CSLB license, the person behind it, workers' comp, the bond and manufacturer certifications for you, with the source for each. ConFacts takes no money from contractors. We show you the record, and you make the decision.

Frequently asked questions

Is it illegal to hire an unlicensed contractor in California?

The legal penalties fall on the unlicensed contractor, not on you. The practical risks, like injuries, no bond and no permit, fall on you.

Is handyman roof repair legal in California?

Yes, if the whole job is under $1,000, needs no permit, and the handyman works alone.

Can an unlicensed person replace my roof?

No. A roof replacement is over $1,000 and needs a permit, so it needs a licensed roofing contractor.

What does an inactive CSLB license mean?

The holder may not contract for work while it is inactive. Treat it the same as unlicensed for your job.

Can I report an unlicensed roofer anonymously?

CSLB's lead referral form asks for the job site. Contact CSLB to ask how your details will be used before you file.

What are the most common unlicensed contractor red flags?

No license number, cash only, a request that you pull the permit, and a price far below other bids.