In California, unlicensed individuals are strictly limited to projects totaling $1,000 or less (labor and materials combined) under AB 2622. This exemption applies only to true sole proprietors — unlicensed individuals cannot have employees. If the total value of a project exceeds $1,000, a valid state-issued contractor license is legally required.
Importantly, the law evaluates the total project value, not individual line items. For example, replacing a faucet may seem minor, but if it is part of a larger bathroom repair or renovation that exceeds $1,000 in combined labor and materials, the work legally requires a licensed contractor.
There is also additional liability exposure to consider. Under California Labor Code §2750.5, if an unlicensed worker (or their helper) is injured on your property, they may legally be deemed your employee. If they do not carry Workers’ Compensation insurance, financial responsibility for medical bills and lost wages can shift to the hiring party.
Hiring Handymen LLC eliminates these risks. We are a fully licensed California contractor (CSLB #1101861) operating with W2 employees, active Workers’ Compensation coverage, General Liability insurance, and a $25,000 contractor’s bond. Our structure ensures regulatory compliance, proper insurance coverage, and accountability for the work performed — protecting your property, your investment, and your peace of mind.