Maybe your contractor seemed like a good fit. The price was right, the timeline looked reasonable, and they promised to handle everything without red tape. But now, you’ve hit a wall: the work is flawed, delayed, or abandoned. Then you find out—they’re not even licensed.
If the contractor you hired was unlicensed, it could seriously impact how the law treats your case—for better or worse.
When Contractors in California Are Not Licensed
Under California law, most construction, remodeling, or home improvement work over $500 in labor and materials must be performed by a contractor with an active license from the California Contractors State License Board (CSLB).
If your contractor isn’t licensed, or if their license has lapsed, they are considered unlicensed. This includes situations where:
- The person used someone else’s license number
- The license expired during your project
- The contractor is licensed in another state but not in California
This matters because California courts take unlicensed contracting seriously—and the penalties can be steep.
How Hiring an Unlicensed Contractor Can Hurt You
While you may have saved money upfront, working with someone unlicensed can come with real legal risks:
- No insurance protections: Unlicensed contractors typically don’t carry workers’ compensation or liability coverage. If someone is injured on your property, you could be liable.
- Poor workmanship or unfinished jobs: You may have limited recourse for substandard work. It’s harder to hold an unlicensed contractor accountable.
- Code violations and permit problems: Work may not comply with local building codes, and required permits may not be obtained, resulting in fines or rework.
In some cases, a contractor who misrepresented their licensing status could be committing fraud. That could lead to criminal charges or civil claims, but it also complicates your ability to recover damages.
When an Unlicensed Contractor Status Might Help Your Case
Here’s the flip side: if your contractor is unlicensed, California law can actually work in your favor.
- No right to payment: In many situations, an unlicensed contractor cannot legally collect payment for their work—even if the job was done.
Return of funds: You may be able to recover money you already paid through a disgorgement claim, especially if the work wasn’t properly performed. - Defensive advantage in lawsuits: If an unlicensed contractor sues you for unpaid work, their lack of a license may invalidate their claim entirely.
Courts have consistently ruled in favor of homeowners when unlicensed contractors attempt to collect payment, even in cases where the homeowner was aware of the lack of licensing.
What You Should Do If You Suspect Your Contractor Is Unlicensed
Before taking any legal action, it’s essential to verify your contractor’s status and document the situation. Here’s how:
- Check the CSLB license lookup tool at cslb.ca.gov
- Gather contracts, invoices, and communications
- Document the worksite—take photos of defects or incomplete work
- Avoid further payments until you speak with an attorney
Once you understand the current situation, you can explore your options for recovering funds, repairing your home, or protecting yourself from further harm.
Let BoyesLegal Help You Protect Your Property and Your Rights
Hiring an unlicensed contractor can feel like a costly mistake—but it doesn’t have to leave you powerless. California law provides strong protections for homeowners who’ve been misled or taken advantage of during a construction project.
At BoyesLegal, APC, we assist homeowners in San Jose, San Francisco, and throughout the Bay Area in resolving contractor disputes and recovering what they’re owed. Whether you’re trying to get your money back or stop a contractor from filing a lien, we’re here to help you take action and protect your rights.. Contact us today to find out how we can support your next step.