How to Verify a California Contractor Before Hiring

Verify License Status on CSLB

The California Contractors State License Board (CSLB) maintains records of all licensed contractors in California. This is your first and most important check—under California Business & Professions Code § 7031, unlicensed contractors cannot legally sue to collect payment for their work.

What to look for:

• License Status: Must be "Active" (not "Suspended", "Revoked", or "Expired")
• License Classifications: Should match the type of work you need (e.g., C-10 for electrical, C-36 for plumbing)
• Expiration Date: Must be in the future
• Business Name: Should match what the contractor told you

Check Workers' Compensation Insurance

Under California Labor Code § 3700, contractors with employees must carry workers' compensation insurance. If a contractor's workers are injured on your property and they lack coverage, you could be liable.

On the CSLB license page, look for:

• Insurance Company Name: Should show an active policy
• Expiration Date: Must be current
• Exemption: Some sole owners with no employees have a valid exemption certificate

Red flag: Expired workers' comp or no coverage without an exemption certificate.

Verify Contractor Bond

Under California Business & Professions Code § 7071.6, licensed contractors must maintain a minimum $25,000 contractor bond. This bond protects consumers if the contractor fails to complete work or violates licensing laws.

Check for:

• Bond Company: Should be listed on the CSLB record
• Effective Date: Should be current
• Bond Amount: Minimum $25,000 (some have higher)

Note: The bond is not general liability insurance. It's a consumer protection mechanism administered by the CSLB.

Search Federal Exclusions (SAM.gov)

The System for Award Management (SAM.gov) maintains a list of individuals and companies excluded from federal contracts per FAR 9.405 (Federal Acquisition Regulation). Being on this list indicates serious compliance issues such as fraud, tax evasion, or criminal conduct.

How to search:

• Go to SAM.gov exclusions search
• Search by the contractor's business name
• Also search by the owner/principal's name
• Check both exact and partial matches

Review OSHA Safety History

The Occupational Safety and Health Administration (OSHA) tracks workplace safety inspections and violations. A contractor with multiple safety citations may have a poor safety culture.

What to look for:

• Serious Violations: Could result in death or serious injury (29 U.S.C. § 666(k))
• Willful Violations: Intentional disregard for safety—penalties up to $156,259 per violation
• Repeat Violations: Same violation found multiple times
• Penalty Amounts: High penalties indicate serious issues (minimum $11,524 for serious violations)

Note: Small contractors working only on private residential projects may not have OSHA records. Absence of records doesn't necessarily indicate a problem.