California Construction Law

Hired an Unlicensed Contractor? California Law Lets You Get Everything Back.

California Business and Professions Code §7031 is one of the most powerful consumer protection statutes in the country. If your contractor was unlicensed, you can recover all money paid — regardless of whether the work was done correctly.

Legal Information — Not Legal Advice: This page provides general information about California law. Consult a licensed attorney for advice about your specific situation.

The §7031 Rule — No License, No Pay

California Business and Professions Code §7031 is unambiguous: a contractor who was not properly licensed at the time work was performed cannot collect or maintain any compensation for that work. Section 7031(b) gives you the right to sue to recover all compensation paid — even if you knew the contractor was unlicensed, and even if you were satisfied with the work. California courts have consistently enforced this rule strictly.

How to Check If Your Contractor Was Licensed

Go to cslb.ca.gov and click “Check a License.” Enter the contractor’s name or license number. Verify the license was active during the period your work was performed and that it covers the type of work done. Even if a contractor has a license number, verify it was in the correct classification for your project.

What “Unlicensed” Includes

  • No CSLB license at all
  • License expired at the time of the work
  • License suspended at the time of the work
  • License was in a different classification than the work performed
  • License was in another person’s name (the contractor was not the licensee)
Two-Year Time Limit: Claims under BPC §7031 are subject to a two-year statute of limitations from the date you discovered the contractor was unlicensed. Act promptly.

The §7031 Disgorgement Claim in Practice

Filing a §7031 disgorgement lawsuit is more straightforward than most homeowners expect. You do not need to prove that the work was defective. You do not need to prove that you were harmed. You only need to prove two things: (1) the contractor performed work on your property, and (2) the contractor was not properly licensed at the time. Everything else follows automatically from the statute.

In practice, most §7031 cases are resolved without a full trial. Once a contractor’s attorney sees that the license verification confirms unlicensed status, the contractor has virtually no defense. Many cases settle quickly for a significant portion of the amount paid.

What if the contractor says they were licensed “through” their supplier or manufacturer?

This is not a valid defense under §7031. The license must be held by the contractor performing the work, or by the business entity that contracted with you, with a qualifying individual directly connected to that entity. A contractor who claims to be covered by someone else’s license is almost certainly unlicensed for purposes of §7031.

The contractor says I waived my §7031 rights by signing the contract. Is that true?

No. California courts have consistently held that §7031 rights cannot be waived by contract. The statute’s public policy purpose — deterring unlicensed contracting — is so strong that courts will not enforce waiver provisions. Even if you signed something that purported to waive §7031, it is unenforceable.

Can I get attorney fees in a §7031 case?

§7031 itself does not provide for attorney fee recovery. However, if your contract includes a fee-shifting clause (common in construction contracts), or if you can prove fraud in addition to unlicensed status, attorney fees may be available on separate grounds. Bay Legal PC will evaluate fee recovery options as part of your free consultation.

Related Pages

Free consultation

Talk to a construction attorney — no obligation

Bay Legal PC handles construction disputes throughout California. Tell us about your situation and we’ll be in touch within one business day.

Send us your information

A member of the Bay Legal PC team will contact you shortly. See our Privacy Policy.

Quick note: Filling out this form does not retain Bay Legal PC. Keep confidential or time-sensitive details out of the message; the attorney-client relationship is established only by signed engagement.