License Requirement for Minor Work Increases from $500 to $1,000

December 31, 2024
SACRAMENTO, CA – Starting January 1, 2025, Assembly Bill 2622 (Carrillo, Chapter 240, Statutes of 2024) increases the minor work license exemption from $500 to $1,000, but there is a catch: the work cannot require a permit, and the unlicensed person cannot employ anyone for the project.

In other words, if the minor work is subject to a permit requirement of any kind, or if the unlicensed person hires one or more workers to assist or perform the work, a license is required – even if the project is less than $1,000.

Before entering into any contract with an unlicensed individual for minor work, consumers should ensure the individual will not be using any workers and the project will not require any building permits. If an unlicensed person provides a bid greater than $1,000, performs work requiring a permit, or employs any workers, that person is subject to legal action.

Existing advertising restrictions are still in effect; however,

• Unlicensed individuals can now advertise for work up to $1,000 (from $500) provided they disclose in the advertisement that they are not licensed.
• The minor work exemption rule does not apply to people who advertise they are licensed or qualified to act as contractors.