If you are a contractor in California, your license is the source of your livelihood. It allows you to perform your responsibilities and support your family. You may have spent years gaining the skills necessary to qualify for your contractor’s license or build a successful business. However, just one complaint can compromise everything you have worked for. The laws and regulations surrounding contractor’s license issues in California are complicated. This makes it hard for someone without legal knowledge to navigate them and defend their right to continue practicing.

If you are being investigated by the California Contractor’s State License Board, you should hire a reputable license attorney to protect your career. At San Jose License Attorney, we can defend your license against investigations and disciplinary actions. Whether you hold an A, B, or C Contractor’s License, we can help protect your business, family, and professional license.

The Role of the Contractors State License Board of California

California’s Contractors State License Board (CSLB) operates under the California Department of Consumer Affairs (DCA). Its primary function is to enforce licensing standards and maintain the business and professional code of conduct. The board oversees the construction industry to safeguard consumers from contractors who do not fulfill their professional obligations.

The CSLB ensures public safety, welfare, and health in construction-related matters. When they receive complaints, the board may initiate an investigation. If the claims are substantiated, disciplinary measures can be taken against the contractors involved. The nature of the disciplinary action varies based on the severity of the allegations.

The goal of the Contractors State License Board is to protect consumers through:

  • Enforcing licensing laws
  • Addressing consumer complaints
  • Taking disciplinary action against legal violations.

These regulations help reduce the irresponsible behavior of some contractors and companies in the construction field.

The board must take disciplinary actions such as suspending, revoking, or denying licenses when contractors fail to meet necessary standards. The CSLB protects the public and ensures that construction projects are safe and high-quality.

The Services California Contractors and General Contractors Offer

Contractors in California are essential for the construction of businesses, homes, and industrial facilities. They ensure that the state’s environment is both functional and visually appealing. There is a high demand for skilled contractors across various industries, including transportation, construction, and renewable energy. In addition to constructing new buildings, California contractors renovate existing structures. These include seismic retrofitting to enhance buildings’ resilience against earthquakes, which is particularly important given the state’s seismic activity.

The skills and workforce of contractors significantly contribute to California’s economy. Without contractors, it would be difficult to meet the housing and infrastructure needs of the growing population and expanding industries.

Contractors are also instrumental in constructing essential public facilities like schools and hospitals, which are vital for the well-being of California’s residents. Their efforts ensure communities have safe places to live and interact, including the roads and water systems essential to our daily lives.

Categories of Contractor Licenses in California

In California, contractors need the right license for their work under the Contractor’s State License Board (CSLB). There are three main classes of licenses:

Class A Contractor Licenses

A Class A license is for general engineering contractors involved in infrastructure and engineering projects. This license is necessary for irrigation, paving, grading, or excavation.

Class B Licenses

General building contractors who build or renovate homes and commercial buildings hold a Class B license. You must hold this license if you manage projects requiring multiple trades, such as carpentry, framing, and electrical work. To qualify for a Class B license, you must oversee more than two unrelated trades on a project.

Class C Licenses

A Class C license is for specialty contractors focusing on a specific construction area. There are various Class C licenses in California, including plumbing (C-36) and electrical (C-10). You need a Class C license if your work is limited to a specific trade like fencing, plumbing, masonry, roofing, drywalling, painting, HVAC, or landscaping. This license is available only to qualified contractors who specialize in their field.

The Contractors State License Board of California (CSLB) was established in 1929 to protect consumers and improve the trustworthiness of contractors. The CSLB restricts licenses for large construction projects costing $500 or more.

As a contractor or general contractor, your role includes building and maintaining structures, homes, and commercial properties. You are expected to uphold high standards of professionalism and ethics.

Common Complaints Against Contractors and General Contractors

Anyone can file complaints against their contractor, but the most typical sources of complaints are homeowners, subcontractors, construction companies, and competitors. Even diligent contractors can face complaints or claims that could affect their careers and livelihoods. The CSLB often addresses issues such as:

  • Poor quality work
  • Not following contract terms
  • Failing to comply with building codes.
  • Fraud, including overcharging.
  • Using low-quality materials or not completing work on schedule.
  • Financial misconduct.
  • Conflicts of interest between contractors and clients or among contractors themselves.

Even minor disputes can escalate into formal claims. The CSLB advises contractors to keep clients updated and try to resolve complaints.

There is often an arbitration process to help resolve disputes without board disciplinary actions or criminal charges. It is usually the most preferred method. However, if the complainant is uncooperative, your attorney has the expertise to contest the complaints and obtain a lighter penalty that enables you to keep your contractor’s license and continue your profession.

How Does the CSLB Handle Allegations Against Contractors?

Due to the high volume of complaints, the CSLB has a large team of investigators who look into these issues thoroughly. Complainants can file their complaints with the Contractors State License Board up to four years after the purported violation. Doing this can put contractors at a disadvantage since the initial work might have changed, leaving them with little evidence of their initial work.

The Contractors State License Board can handle an investigation into a complaint in several ways:

  • Closing the complaint without any discoveries against the licensee
  • Issuing a fine and citation
  • Submitting an Accusation to revoke the practitioner’s license.

Citations Issued By The Board

When the Contractors State License Board investigators suspect a contractor has broken a regulation or rule, they could issue citations. Actins that trigger a citation from the CSLB include:

  • Violations of contracts
  • Issues with workers’ compensation
  • Assisting an unlicensed contractor
  • Problems with down payments
  • Failing to finish the task for the agreed price
  • Failing to meet industry standards

Citations can harm a contractor’s standing and come with expensive fines. The board might also require the licensee to give restitution to the client, which could be costly. Licensed contractors can petition Contractors State License Board citations and have a hearing with an administrative law judge (ALJ) to present their evidence against the claims.

Accusation to Suspend Or Revoke Licenses

When the CSLB finds that a licensee has infringed the law, performed poorly in their duties, or poses a risk to the general public, it can file an accusation to revoke or suspend the practitioner’s right to practice. If you obtain an accusation/formal notice from the Contractors State License Board, you have fifteen days to submit a Notice of Defense to the board’s attorney, stating your wish to petition and ask for a hearing. If you do not submit the Notice of Defense, you could lose your license to practice without further warning.

The attorneys who file these accusations for the board focus on California’s contracting laws and are specifically hired to discipline or revoke contractor licenses.

When the contractor replies to the accusation in 15 days, they can request a hearing. After the board obtains the Notice of Defense, it notifies the Office of Administrative Hearings (OAH) to schedule a hearing. The timing of that hearing will depend on how long the hearing is expected to take.

The license holder will receive an accusation and request for discovery. The board and the contractor must share relevant evidence related to the accusation. If you hire a license attorney, your attorney will collect findings from the Contractors State License Board, which includes witness statements, investigative reports, audio and video evidence, and any additional materials the CSLB plans to use during the hearing.

During this time, your license attorney can bargain with the board’s attorney to settle and avoid the stress and costs of a contested hearing. The Contractors State License Board can resolve issues before the hearing, and multiple cases are settled during this negotiation phase.

Your attorney will work with you to create records, identify witnesses that counter the claims in your accusation, and highlight the particulars of the case that support your rights to a fair hearing.

The matter will move to a hearing when the CSLB does not provide acceptable settlement terms. For cases set up for four or even more days, the OAH will arrange a settlement conference and a prehearing conference several weeks before your hearing. An ALJ will conduct the settlement conference and review the case details with both the board attorney and your attorney to try to settle. If an agreement is made, it is recorded, and the matter is closed.

If no settlement is achieved, the prehearing conference will occur, with the ALJ overseeing the hearing. This conference addresses all prehearing petitions and confirms that both parties have met discovery conditions and are prepared for the hearing.

Public Disciplinary Records

Citations and accusations are added to the contractor’s file for public viewing, and individuals, including potential customers and competitors, can see these accusations. These documents also include all unproven claims against the contractor.

Contractors often compete directly with each other for jobs. Homeowners and potential clients frequently check the CSLB’s public record system to see a contractor’s license status and disciplinary history. Having a citation or accusation can lead to lost business opportunities.

License Application Denial

The CSLB can deny a license application if it thinks the applicant does not meet the necessary qualifications. Common reasons for denial include:

  • Lack of work experience
  • Criminal records
  • Previous license issues.

If the board declines your application, you have a short time to appeal and request an administrative hearing.

The Administrative Hearing Process

An administrative hearing takes place before an ALJ without a jury.

The Contractors State License Board of California will submit its case during the hearing by sharing investigative reports and expert testimonies and calling witnesses. The contractor’s attorneys can interrogate the witnesses and challenge any irrelevant or illegally obtained evidence. After the CSLB finishes its claim, your lawyer will submit your proof and witnesses. If the board brings in expert witnesses, you must have your expert witness counter their findings. Once all proof and testimonies are recorded, the hearing concludes.

The administrative law judge has thirty days to create a proposed decision and send it to the board for review. The CSLB then has a hundred days to decide on the proposed decision, then either:

  • Accept it as the final judgment.
  • Reject it and create a new Decision
  • Change the Proposed Decision

The proposed decision becomes final if the board does not act in 100 days.

Possible outcomes include:

  • Discharge of the Accusation
  • License revocation with a stay and a probation period
  • Issuing a Public Reproval letter
  • License revocation
  • License revocation with a stay, suspension, and a probation period

The ALJ will provide a proposed decision, which is not mandatory for the Board to follow. That means you could win at the hearing, yet the CSLB might still reject the judge’s proposed decision and make its ruling against your license. When considering a hearing, you should talk with your lawyer to understand what a proposed decision means and your alternatives if the board does not accept the ALJ’s recommendation.

Find a Contractor License Defense Lawyer Near Me

The Contractors State License Board is the licensing agency governing contractors and general contractors. It can revoke your license and prevent you from practicing as a contractor in California. Losing your license could mean losing your chance to work in California’s construction industry. Therefore, if you receive complaints against your practice, you should seek legal help from attorneys who have experience with contractor licensing laws.

San Jose License Attorney has experience representing licensed contractors and a proven track record of success at administrative hearings. If you face an accusation, contact us immediately at 408-850-3740 for a consultation with one of our attorneys.