California Contractor License Requirements
Understanding what goes into getting a California contractor license helps you appreciate why it matters. The licensing process is not trivial. Contractors must demonstrate real experience, pass a two-part exam, and maintain ongoing financial protections.
This guide explains the requirements so you can better evaluate the contractors you hire and understand what their license actually represents.
Experience Requirement: 4 Years
California requires at least four years of journey-level experience in the classification being applied for. "Journey-level" means working as a skilled tradesperson, not as a laborer or helper. This experience must be verifiable and documented.
The experience requirement is one of the stricter standards in the country. Some states require as little as two years or no experience at all. When you hire a California-licensed contractor, you are hiring someone with a minimum of four years of verified trade experience.
The Two-Part Exam
Applicants must pass two exams administered by the CSLB. The first is a trade exam specific to the classification being applied for. A plumbing contractor takes a plumbing exam. An electrical contractor takes an electrical exam. The second is a law and business exam covering California construction law, contract requirements, safety regulations, and business management.
The pass rate on the trade exam varies by classification but typically falls between 40% and 60%. The exam is designed to filter out applicants who lack sufficient knowledge. It is not a formality.
Contractor License Bond ($25,000)
Before a license is issued, the applicant must file a $25,000 contractor license bond with the CSLB. This bond remains in effect as long as the license is active. If the contractor violates the terms of a contract or breaches California construction law, consumers can file a claim against this bond.
The bond amount was increased from $15,000 to $25,000 in 2023. Some project types require additional bonds. Swimming pool contractors, for example, may need to carry a separate bond for home improvement projects.
Verify a Contractor's License Now
Workers' Compensation Insurance
Any contractor with employees must carry workers' compensation insurance. This is not optional. A sole proprietor with no employees may file an exemption, but if they hire anyone, even temporarily, coverage is required.
When you verify a contractor's license, the record shows whether they have workers' comp on file or have filed an exemption. This is one of the most important things to check before letting anyone work on your property.
Ongoing Requirements
A California contractor license must be renewed every two years. The renewal requires maintaining the license bond and workers' comp coverage. The CSLB can suspend or revoke a license at any time for violations, complaints, or failure to maintain required bonds and insurance.
Contractors must also display their license number on all advertising, contracts, bids, and commercial vehicles. If a contractor provides a bid or contract without a license number printed on it, that is a warning sign.
What This Means for You as a Homeowner
A valid California contractor license tells you that the person or company has at least four years of trade experience, passed a knowledge exam, carries a surety bond, and is subject to CSLB oversight and discipline. It is not a guarantee of quality, but it is a meaningful baseline.
Contractors who skip this process are cutting corners before they even start working on your project. Always verify the license before signing anything.