License law
CSLB fines for unlicensed work start at $1,500.
Senate Bill 779 raised CSLB's minimum civil penalties on July 1, 2026. The change that hits a plumbing shop is a helper doing licensed plumbing work without a license. Two contract rules for home improvement took effect earlier, on January 1. Mainline places contractor coverage from 779 3rd Avenue, Chula Vista. Call 619-420-8600. This page does not show a premium.
An unlicensed-contracting citation starts at $1,500.
Beginning July 1, 2026, the civil penalty on a citation for acting as a contractor without a license is $1,500 to $15,000. CSLB's December 29, 2025 bulletin states the same floor: fines for unlicensed activity start at $1,500. The citation is the board's civil penalty. Contracting without a license is also a misdemeanor, with its own fine.
Most other citation penalties under section 7099.2 are $500 to $8,000. Four sections carry $1,500 to $30,000: section 7110, section 7114, section 7118, and section 7125.4. The board may adjust the minimums for inflation every five years, using the Consumer Price Index, and round the increase.
Sources: Senate Bill 779, Chapter 233 of the Statutes of 2025, operative July 1, 2026, and CSLB industry bulletin #25-04, December 29, 2025. Checked October 13, 2026.
A helper doing plumbing work is the insurance point.
Section 7118 makes it cause for discipline to enter a contract with a contractor who is not licensed under the contractors' law. Section 7114 makes it cause for discipline to aid an unlicensed person in evading that law, to conspire with an unlicensed person, to let an unlicensed person use the license, or to act as agent, partner, or associate of an unlicensed person with intent to evade the law. Section 7110 covers willful or deliberate disregard of the building laws, and of the state's safety laws, labor laws, or compensation insurance laws.
Section 7125.4 is the workers' compensation section. It sits on this $1,500 to $30,000 list. When the violation is employing workers without maintaining coverage, Senate Bill 291 sets higher minimums: $10,000 for a sole owner and $20,000 for a partnership, corporation, LLC, or tribal business. Those amounts are in the Senate Bill 291 note.
An unlicensed person doing work that requires a contractor license can be treated as the hiring plumber's employee. A 1099 form does not decide that. If the person must be covered, the workers' compensation exemption on file stops covering the license. The class and the audit rule are on the workers' compensation page.
Home improvement contracts picked up two rules on January 1, 2026.
These rules are for home improvement. A new-construction contract or a commercial contract is a different form.
Assembly Bill 1327 requires the contractor's email address in the home improvement contract and lets the buyer cancel by email. The contract also has to include a telephone number the buyer can use to locate and complete the Notice of Cancellation. CSLB says a missing notice is grounds for a complaint to the board.
Senate Bill 517 says a contractor who uses subcontractors on a home improvement project must disclose them when the customer asks. The disclosure is the subcontractor's name, contact information, license number, and classification. The prime remains responsible for the project. A subcontractor or a home improvement salesperson can also face discipline for a violation.
Source: CSLB industry bulletin #25-04, December 29, 2025. Checked October 13, 2026.
Common questions
What is the CSLB fine for unlicensed contracting in 2026?
Beginning July 1, 2026, Senate Bill 779 sets the civil penalty on an unlicensed-contracting citation at $1,500 to $15,000. Most other citation penalties are $500 to $8,000. Violations of sections 7110, 7114, 7118, and 7125.4 are $1,500 to $30,000. The minimums can be adjusted for inflation every five years.
What changed on home improvement contracts in 2026?
Assembly Bill 1327 requires an email address on the home improvement contract, lets the buyer cancel by email, and requires a telephone number for the Notice of Cancellation. Senate Bill 517 requires the prime, on request, to give the subcontractor's name, contact information, license number, and classification.
The other two notes.
Why a solo C-36 exemption lasts through 2027. What Senate Bill 291 changed on January 1, 2026.