Unlicensed Contracting Fines Just Jumped to $1,500 Minimum (SB 779)

July 20, 2026 by Peerless Institute

SB 779 raises the minimum civil penalty for many unlicensed contractor citations in California from $200 to $1,500 starting July 1, 2026. The maximum for that citation remains $15,000, but the floor is now high enough that "small side job" thinking can get expensive fast.

Issue	Before July 1, 2026	Starting July 1, 2026	Source
Unlicensed-person citation under B&P Code section 7028.7	$200 minimum, $15,000 maximum	$1,500 minimum, $15,000 maximum	SB 779
Other specified CSLB civil penalties	No minimum for many violations, maximums applied	$500 or $1,500 minimums depending on violation	SB 779
Licensing trigger	Permit required, employee labor, or total project cost $1,000+ generally requires a license	Same trigger; higher penalty floor raises the risk	CSLB

SB 779 unlicensed contractor fine: what changed?

SB 779 adds new operative language to Business and Professions Code section 7028.7. For unlicensed-person citations, the registrar may issue a citation with an order of abatement and a civil penalty of not less than $1,500 and not more than $15,000. That section becomes operative July 1, 2026 (Leginfo SB 779).

The old version, which remains only until July 1, 2026, used a $200 minimum and $15,000 maximum (Leginfo SB 779). The change is the floor. A first mistake that used to start at a few hundred dollars now starts at $1,500 before any other criminal, civil, job-loss, or reputation consequences.

Who is at risk?

The risk is not only people pretending to be licensed. It also hits people who misunderstand the exemption. CSLB says a license is generally required if the project needs a building permit, uses additional workers, or the total cost of labor and materials on one or more contracts is $1,000 or more (CSLB before applying).

The same page warns that work on a larger project may not be broken down into smaller amounts under $1,000 to meet the exemption (CSLB before applying). That is the practical trap. If a customer asks for "just a small part" of a bigger permitted job, price and paperwork do not erase the licensing requirement.

Three examples to check before you bid

Job situation	Better answer
$900 repair, no permit, no helper, no larger related contract	Possibly exempt, but do not advertise as licensed if you are not licensed.
$750 labor plus $400 materials	The total is $1,150, so treat it as license-required unless another exemption clearly applies.
$800 first phase and $800 second phase for the same project	Do not split a larger job to fit the exemption. Check licensing before bidding.

What licensed contractors should do

Licensed contractors should still care about SB 779. The bill also adds minimum civil penalties for other specified CSLB violations and allows inflation adjustments every five years (Leginfo SB 779). It is another sign that CSLB enforcement is moving toward higher floors, not warnings with tiny numbers.

Use this as a license hygiene check. Confirm your license is active before advertising, verify your classification covers the scope, keep workers compensation current, and make sure subcontractors have the right classification before they start.

How this connects to getting licensed

If you are close to qualifying, the better path is to finish the license. The original CSLB exam application fee is $450 as of July 2026 (CSLB fees). You still need four years of qualifying experience, the trade exam if required, the Law and Business exam, fingerprinting, a bond, and issuance items, but the result is a license you can build on. Start with your trade's roadmap — for example, how to get the electrical (C-10) license or the general building (B) license — and review the other new 2026 contractor laws while you prepare.

The Law and Business exam is not just a hurdle. It is where these enforcement rules show up as business judgment: contracts, advertising, workers compensation, subcontracting, liens, public works, and safety.

FAQ

When does the new SB 779 fine take effect?

The new $1,500 minimum for unlicensed-person citations under Business and Professions Code section 7028.7 becomes operative July 1, 2026. The previous $200 minimum remains in the older version that is repealed on that same date.

Is the maximum penalty still $15,000?

For unlicensed-person citations under section 7028.7, the new range is $1,500 minimum to $15,000 maximum. Other specified CSLB violations can have different ranges, including minimums of $500 or $1,500 and maximums up to $8,000 or $30,000 depending on the violation.

Can I do work under $1,000 without a license?

Maybe, but only if the exemption really fits. CSLB says the work must not require a building permit, must not use employee labor, and must stay under the $1,000 total for labor, materials, and all costs. A larger project cannot be split to avoid licensing.

Should I apply before I have all four years of experience?

No. CSLB requires at least four years of qualifying experience in the classification, and the claim must be verifiable. Apply when the experience is real, documented, and ready for a qualified person to certify.

Sources

Peerless Institute has helped Californians pass CSLB exams since 1953. If SB 779 is the push to get licensed, start with the Law and Business Study Guide Book and the Law and Business Online Practice Exam.