California unlicensed contractor $1,000 limit (AB 2622)
Since January 1, 2025, California lets you do small jobs without a contractor license only if the total is under $1,000. Here is what the rule says, who needs a CSLB license, and how insurance fits in.
The $1,000 rule in plain words
Under AB 2622, effective January 1, 2025, unlicensed work in California is allowed only when all of these are true:
- The job is under $1,000, counting labor and materials together.
- The job does not need a building permit.
- You do the work without hired help.
Before 2025 the limit was $500. The higher limit gives handymen a little more room on small repairs, but the other two conditions did not go away. If a job needs a permit, or you bring on a helper, the dollar amount alone does not make it exempt.
This is general information about the rule, not legal advice. For your own situation, check with CSLB.
How the limit is counted
The $1,000 is the total for the job, labor plus materials. It is not just your labor, and it is not just the part you bill today.
| Question | Under the rule |
|---|---|
| What counts toward $1,000? | Labor and materials together |
| Does a permit change it? | Yes. The job must not need a permit |
| Can I bring a helper? | No hired help |
| What was the old limit? | $500, before January 1, 2025 |
If you are close to the line, or you keep getting jobs that go over it, that is a sign it is time to get licensed.
Who needs a CSLB license
Outside that small-job exception, anyone who contracts to build, repair, remodel or improve property in California for $1,000 or more needs a license from the Contractors State License Board (CSLB). That includes handymen whose jobs grow, specialty trades and general contractors.
A license comes with its own requirements. Every licensee carries a $25,000 contractor license bond, and every licensee files a workers' comp certificate or an exemption with CSLB. If you license as an LLC, CSLB also requires liability insurance and a separate worker-wage bond.
- See the license bond vs insurance guide for what the bond does and does not do.
- See the CSLB LLC insurance requirement if you plan to license as an LLC.
What changes when you get licensed
Moving from small handyman jobs to a licensed business adds a few things you carry with the license. In general:
- A license bond. Every licensee carries a $25,000 contractor license bond. It was $15,000 before January 1, 2023.
- Workers' comp on file. You file a workers' comp certificate or an exemption with CSLB. C-8 concrete, C-20 HVAC, C-22 asbestos abatement, C-39 roofing and D-49 tree service must carry workers' comp even with no employees. A law that would have required it for all licensees from 2026 was delayed to January 1, 2028.
- Your classes. Your license lists the trades you are licensed for. GCs check that the class matches the work they hire you for.
- Liability insurance. Required for LLC licenses, and strongly recommended by CSLB for everyone else.
Once licensed, you can bid jobs over $1,000, pull permits for permitted work and hire help. Those are the jobs where GCs and homeowners start asking for proof of insurance.
Why GCs and homeowners check license and insurance
Before a GC hires a sub, and before many homeowners sign, they look up the license number on the CSLB website and ask for proof of insurance. They want to know:
- The license is active and covers the trade being hired.
- The bond and workers' comp status on file are current.
- There is general liability insurance in place if something goes wrong.
For non-LLC licensees, CSLB does not require general liability by law, but it strongly recommends it. GCs, commercial owners and many homeowners require it by contract. Most GCs ask for $1M per occurrence and $2M aggregate, and a certificate of insurance before you start. See the certificate of insurance guide.
How insurance ties to your license
Contractor general liability is written for a licensed business doing a specific kind of work. Your license classes tell the insurance company what trade you are in, and that shapes the price and what the policy includes and excludes.
Aster's online quote starts from your CSLB license number. We look up your business in the CSLB public record, confirm you are the owner, and ask about a minute of questions. Quotes from multiple A-rated programs then arrive on your board. So the online quote is for licensed contractors.
If you are still working toward your license, you can call or text a licensed agent at (877) 940-4313 with questions. Once you have your license number, start your quote on the home page.
Common questions
What is the unlicensed contractor limit in California?
Since January 1, 2025, under AB 2622, unlicensed work is allowed only on jobs under $1,000 for labor and materials combined, with no permit required and no hired help.
What was the old handyman limit in California?
It was $500. AB 2622 raised it to $1,000 starting January 1, 2025. The no-permit and no-hired-help conditions still apply.
Does the $1,000 limit include materials?
Yes. The limit counts labor and materials together for the whole job.
Can a handyman hire a helper on a job under $1,000?
Under the rule, unlicensed work is allowed only without hired help. Bringing on a helper takes the job outside the exception.
Can I get contractor liability insurance without a CSLB license?
Aster's online quote starts from a CSLB license number, so it is built for licensed contractors. Call or text (877) 940-4313 with questions about your situation.
Do I need a contractor license for handyman work in California?
Only jobs under $1,000 in labor and materials, with no permit and no hired help, can be done without a license. Anything outside that needs a CSLB license.
General information about California rules, not legal advice. Check your own licence with CSLB. Coverage is subject to the policy's terms, conditions and exclusions, and to the insurance company's approval. Some licence types are quoted by an agent instead of online. Updated 2026-10-10.