Can just anyone report a contractor working without a licence?

Question

In CA it is a misdemeanor for an unlicensed contractor to do more than $500 in work on a single project. This law cannot be "waived" by the customer. (California Business & Professions Code sections 7028 & 7048). But the question is this:
Can someone such as a neighbor of the homeowner report the contractor that the homeowner hired (to the Contractors State License Board, local police department, attorneys office, dept of insurance, etc,) even if they (the neighbor) have no evidence of them being payed more than $5000? If they simply see and hear weeks of work going on by that "contractor" and can prove that this contractor's license expired 8 years ago?

Answer 1

Yes, anyone can report. Reports are often made by unhappy customers, legitimate contractors (upset about the unfair competition from illegal operators), and independent sting operations from the Contractors State License Board and/or local authorities (e.g. the District Attorney). The CSLB has set up a task force (SWIFT) to process complaints. See links.

Answer 2

I would have to get clarification on that law.
Does he have to actually do the work in a single day?
Does he actrually have to recieve full payment for each job?
What if he / she signs contracts to do work on a later date, but the contracts are signed in one day and exceed that limit?
What if he sub-contracts portions of the job and he recieved payment ( he did not do the work).

I guess, since the law is written so vaguely anyone can report suspected fraud. ..Leaving people with the impression he is a licensed contractor when he is not.

Another note, in all reality he is sticking it to himself only. I mean, if someone paid him to do a job, and he never did it. They can sue him, in fact anyone paid to do a job and don't do it can be sued and the other side will recover what they paid. If someone paid him to do a job and it was not up to what was paid for or agreed upon / expected then again they can sue him and recover a portion of those funds too. this is where it ends without a license.
If you have no license then you cannot legally enter into a contract to do work. Therefore, you can not recover if said contract is broken. if you do a job and the customer don't pay you then the law cannot be used to recover period. you are burnt !!
Without a license you have no protection but are still held liable and can be arrested for operating a business without a license, and I guess they can cop your business equipment and auction that off and freeze business accounts. Depends how far they ( The Long Arm Of The Law) want to go on a specific case.

However, on the other side, he is more likely than not charging a lot less than other contractors, and if he is really operating an honest business practice ( with that exception) and doing good work then you could be only screwing yourself and your neighbors just to prove a point. In other words, sometimes just because we can do something is not really a good enough reason that we should do it.
It is all about scrupples I guess, what is right to one may be totally not permitted by another.

Oh, and if you really want to stick it to him you can get a Lawyer friend to have him come to his house for an estimate - while he's there the lawyer will know what to ask to know if its is true or not. Maybe they issue a card to carry with you, and he'd request to see that card. A lawyer would know, speak to one if you do not know of a " lawyer friend" who will do this.

Answer 3

This Site Might Help You.

RE:
Can just anyone report a contractor working without a licence?
In CA it is a misdemeanor for an unlicensed contractor to do more than $500 in work on a single project. This law cannot be "waived" by the customer. (California Business & Professions Code sections 7028 & 7048). But the question is this:
Can someone such as a neighbor of the homeowner...

Answer 4

I think you are, for some reason, out to "get" either this contractor, your neighbor, or both. The fact is, as you state, you can't prove this contractor is being paid in excess of the limit (Whether $500.00 or $5000.00, you stated both). Although there are "weeks of work" going on, you don't know and can't prove what amount the parties agreed upon as payment. There is, however, a possibility that this contractor could pursue you for some personal defamation if you have an investigation swooping down on him because of your unfounded suspicions. If I were you, I would mind my own business. Whatever their agreement, it is not affecting you in any way.

Answer 5

If you suspect some wrong doing by someone is an unlicensed contractor. If you suspect your neighbor has hired an unlicensed contractor and have proof then by all means contact the CA. State Contractors Licensing Board. However, if you value your neighbor's relationship be very careful not to start a feud.

Answer 6

This person can do whatever they want but it is hard to prove. He can say he is doing it for free or that he owes the person some help or whatever. It's my experience that God takes care of these things himself. It is the law that we are supposed to obey...the ten commandments. Also it says to render unto Cesear what is his and to God what is His, meaning that paying taxes and obeying the law is supposed to be our responsibility. So, when someone doesn't do the right thing, he will eventually pay. It really isn't my job to make people do the right thing....it's God's and He usually does. I believe that what you give, you will receive. So, telling on him may make him stop but what will it do to you? I really would be careful...spiritual laws are bigger than mans laws. You may be taking food off the table where kids eat, I don't know his reasons for doing what he is doing. Do you? So, just do what you feel is right for you, I guess. If you think he is wrong and deserves to be taken down, call and let the proper people take care of it. It's your call, you are seeing it go on.

Answer 7

Sure, anyone can report their suspicions. It sounds like the neighbor was correct. Incidentally, if an unlicensed contractor performs work for you, you are not obliged to pay them. They have no legal standing in court because they are unlicensed.

Answer 8

Why would you want to take away someones livelihood? is there something about him you don't like?

I was reported like this years ago but, nothing came of it although the lady tried her best, I sued her and won the case, she had to pay for everything. The judge told her the next time she takes away the livelihood of someone, make sure she's right.

My brother, who worked for me, would not date this ladies friend, that was grossly overweight, he told her "no" he wasn't interested. She tried to get even with me.

Usually something happens and your trying to get even, or your jealous or, your just a good citizen and trying to keep people within the law and, your going to make him suffer with the loss of his job and wages. Does he have a wife and kids?

What is it?

Answer 9

Yes, anyone and someone just like yourself. I wish you would, that may help someone else, out.

Have a good night.

Answer 10

go ahead and drop dime. remember, what comes around goes around.