EL DORADO COUNTY, Calif. (October 20, 2023) – Significant crackdown on unlicensed contractors in California. The Contractors State License Board (CSLB), in collaboration with various law enforcement agencies, has recently executed two undercover sting operations targeting unlicensed contractors operating in Fresno and El Dorado counties.
In late September and early October, CSLB’s Statewide Investigative Fraud Team, also known as SWIFT, joined forces with the Fresno County District Attorney’s and Sheriff’s offices, the El Dorado County District Attorney’s Office, and the Placerville Police Department to carry out these covert operations.
The results are in, and they are nothing short of eye-opening. A total of thirteen individuals have been slapped with notices to appear in criminal court, facing allegations of operating without the requisite contractor’s license. These individuals now find themselves in a precarious legal position, as they may be subjected to substantial fines and even the possibility of a jail sentence.
What’s particularly striking is the magnitude of these unlicensed operations. The bids put forth by these individuals went well beyond the legal threshold of $500 for unlicensed contracting activities. The range of bids stretched from a relatively modest $1,100 for flooring work all the way up to a hefty $12,000 for fence construction. It’s essential to underscore that in California, submitting bids for construction projects exceeding $500, including both labor and materials, is unequivocally illegal without a valid contractor’s license.
But that’s not all. Several of these suspects reportedly went a step further by requesting excessive upfront payments before commencing home improvement work. California law is clear on this matter: contractors are prohibited from demanding or receiving down payments exceeding 10% or $1,000 of the contract price, whichever is less. Violation of this down payment restriction is deemed a misdemeanor, and the potential penalties are far from lenient, encompassing fines of up to $5,000, a potential year behind bars, or both.
Moreover, these suspects may face additional charges for illegal advertising practices. Licensed contractors are mandated to display their license numbers on all business-related materials, including advertisements, commercially registered vehicles, and business cards. Failing to comply with this requirement can lead to first-time offenders facing fines of up to $1,000.
David Fogt, the CSLB Registrar, did not mince words when he emphasized the gravity of this issue, stating, “Acting as a contractor without a proper contractor’s license is a consumer protection concern and a misdemeanor in California, carrying significant penalties, including fines of up to $15,000 and possible jail time.”
The enforcement efforts didn’t stop at the bids and down payments; two contractors were also issued Stop Orders, immediately halting the use of employee labor at the undercover site. This action was taken because these contractors failed to provide workers’ compensation for their employees present at the site. Non-compliance with a Stop Order is no trifling matter; it can lead to misdemeanor charges and penalties, potentially encompassing 60 days in jail and/or fines of up to $10,000.
This operation underscores the state’s unwavering commitment to safeguarding consumers and preserving the integrity of the construction industry in California. It sends a strong message to unlicensed contractors that flouting the law will not be tolerated, and those who do will face the full force of legal consequences. As this story develops, we will keep you informed on any further updates regarding the legal actions and outcomes for these individuals.
