California Business and Professions (B&P) Code requires any home or property improvement work valued at $500 or more for labor and materials be undertaken by a licensed contractor.  B&P Code also requires contractors to put their license number in all advertisements.  Those without licenses may do work valued at less than $500 for labor and materials, but must state in their ads that they are not a licensed contractor.

Consumers often don’t realize the risks associated with hiring an unlicensed person for construction and property improvement.  Phony contractors do not have a contractor license bond or workers’ compensation insurance.  A worker who is hurt on the job could seek medical reimbursement or other damages from the property owner.  California Labor Code requires contractors to carry workers’ comp coverage for each of their employees.  Roofing contractors also must have workers’ compensation coverage for themselves.  B&P Code requires contractors to have a $12,500 license bond to help compensate consumers if work is not completed or if something goes wrong on the job.