Hiring for small jobs: the $1,000 minor-work exemption and its limits
An unlicensed person can take on only small, permit-free jobs under $1,000, and the conditions are narrower than most owners assume.
Reviewed by Laurence S. Bezinover · Published
What changed
AB 2622 raised the Contractors State License Board's minor-work exemption from $500 to $1,000. An unlicensed person may do a job only if the total price for labor, materials, and everything else is under $1,000, the work needs no building permit, it is not part of a larger project or split into smaller contracts, and the person does not employ anyone to help or advertise as a contractor (Bus. & Prof. Code § 7048). An unlicensed person who advertises for these jobs must say they are not licensed (Bus. & Prof. Code § 7027.2).
Why it matters
A contractor without a required license cannot sue to be paid, whatever the merits, and the customer can sue to recover everything it paid (Bus. & Prof. Code § 7031).
Questions to raise with counsel
- Owners and businesses: before hiring for a job close to $1,000, or one that needs a permit, have we checked the license on the CSLB website?
- Could any of our jobs look like a larger job split into smaller contracts to stay under the limit?
- Contractors: are we verifying every subcontractor's license before work starts?
This briefing is general information about California law, not legal advice for your situation. Reading it does not create an attorney-client relationship.