Exemptions from the License Law
Numerous exemptions from the Contractors' State License Law exist. One exemption is for minor or inconsequential projects for which labor and materials do not amount to more than $500 in the aggregate. This exemption also applies to materials suppliers. However, a fine line is drawn when applying this particular exemption. In one case, California courts stated a license was required of a prefabricated-pool installer whose work required significant excavation and other work. In another case, a license was not required of a prefabricated-restroom manufacturer whose employees assemble components and bolt the unit to a foundation.
Another important exemption applies to "owner/builders." This exemption typically applies when the owner performs the work on his or her own or uses his or her own employees to do the work. Lastly, an exemption applies to architects and engineers performing solely within their professional capacities.
This is general information only. Do not act on any of these concepts or ideas without the benefit of qualified legal counsel. Please read our full Disclaimer.
