Under prior law, unlicensed-individuals could perform construction work if the total cost of labor, materials, and other project expenses did not exceed $500. Under AB 2622, the threshold was raised to $1,000, effectively allowing unlicensed persons to handle more small jobs without violating the California's Contractors State License Law.

The new exemption applies only if no building permit is required. If the scope of work triggers a building permit (electrical rewiring, plumbing changes, or structural modifications) an unlicensed person cannot legally accept the job. In such cases, a licensed contractor is mandatory.

Also, unlicensed persons under the exemption cannot employ any other person to perform or assist with the work. When another person is brought on-board whether paid or unpaid, the exemption no longer applies, and a contractor's license is required.

Contractor vs. Handyman