As a contractor or general contractor in California, your professional license is one of the most important things to you. It is how you earn a living, fulfill your duties, and care for and provide for your family. Qualifying for that license and building a successful business has undoubtedly taken you several years of training and gaining experience.
Nonetheless, any mistake, however small, could lead to you losing your license faster than you acquired it. Consequently, if you learn that someone has raised a complaint against you to the Contractors State License Board of California (CSLB), you want to take the necessary steps to protect your livelihood. One of these steps is consulting an experienced professional license defense lawyer.
At San Jose License Attorney, we boast both the knowledge and experience necessary to defend your license against disciplinary proceedings and investigations. Whether you hold a C, B, or A contractor’s license, we can help you safeguard your business, family, and future. Call us today for a complimentary initial consultation.
The CSLB’s Duties In Respect to Contractors and General Contractors in California
The CSLB is a crucial agency that regulates the California construction industry and operates under the Department of Consumer Affairs. There are almost 300,000 contractor licensees in California. All these professionals, spread across more than forty categories, are overseen by the CSLB. The primary responsibilities of this board are
- Licensing qualified contractors. Reviews license applications and grants licenses for different construction classifications after verifying their qualifications, including their financial, experience, and education requirements
- Regulation. Setting standards for California’s construction sector and ensuring licensees adhere to state laws to safeguard consumers from substandard work, illegal practices, and fraud
- Resolving complaints. Probing complaints against licensees and resolving them in the best possible way.
- Enforcing standards. Taking disciplinary action against licensees who breach rules and regulations governing licensure.
- Protecting the public. Offering an online tool for consumers to check the status of a contractor’s license and their disciplinary history, and to find licensed contractors.
- Educating the general public. Providing resources to assist consumers in understanding their responsibilities and rights when retaining contractors, as well as the importance of hiring licensed contractors.
Essentially, the CSLB serves as a consumer watchdog for the construction industry in California, ensuring quality practices and preventing unethical behaviors by vetting professionals and holding them responsible. The primary mission of this body is to protect consumers while ensuring fair practice within the construction sector.
Whether you are a contractor seeking to expand your business or a homeowner planning to renovate your property, understanding the role of the Contractors’ State License Board of California can help you navigate the licensing process, ensure compliance, and hire qualified professionals.
Common Forms of Construction Violations
There are over thirty violations described under the California Business & Professions Code that the CSLB enforces. These include, without limitations:
- Acting as a contractor with a suspended, expired, or inactive license
- Failure in a material aspect to complete a construction operation or project for the price mentioned in the contract, or a modification of the contract
- Willfully or deliberately disregarding building, labor, safety, employment, or workers’ compensation laws.
- Violating any safety provisions under the California Labor Code, leading to death or severe injury
- Willfully departing from accepted trade specifications and plans or trade standards.
- Abandoning a project without any legal reason
- Poor workmanship.
- Failing to pay employees, suppliers, or subcontractors
- Violating the California Building Standards Code
- False, misleading, or deceptive advertising
- Violating the laws governing home improvement contracts
- Lack of reasonable diligence in executing a construction project
- Taking a down payment over the legally allotted amount
- Breach of contract
- Not having the proper permits
- Criminal convictions
- Misrepresentation or fraud
The Disciplinary Process by the CSLB
The disciplinary process against contractors occurs in various steps as follows:
The Filing of a Complaint
The disciplinary process can be triggered by someone complaining about a licensed contractor or license applicant to the board. Complaints can come from any party, including:
- Homeowners
- Material suppliers
- Subcontractors
- Other contractors
- Public agencies
- Employees
A disciplinary process may also be initiated by a licensee or applicant being found guilty of an offense. These complaints arise as disputes or disagreements between the contractor and the complainant. Generally, the timeframe for bringing a complaint against a contractor or a general contractor’s misconduct is four years. Any complaint filed after the deadline has passed is likely to be dismissed.
Once a party has filed a complaint against you, the CSLB will review it to determine whether it has the jurisdiction to handle it. Typically, the board has jurisdiction to process complaints that involve:
- Failure to complete a project
- Poor workmanship
- Failing to pay employees, suppliers, or subcontractors
- Violations of the California
- Building Standards Code
- Using deceptive, misleading, or false advertising
- Working with no license
Dispute Resolution
If the board determines that it has jurisdiction to handle the complaint against you, it will send a notice to the complainant, informing them that they have received their complaint and are looking into the matter. The board will also send you a notice urging you to solve the problem that led to the complaint without its further intervention.
If you and the complainant cannot resolve the matter, the board may subject it to mediation. Should mediation fail, then the board will choose one of the several other options for resolving the complaint based on the case facts. If your actions were not severe and you have no record of other wrongdoings, the board may close the case file with a letter of admonishment to you. This letter will stay in the board’s file on you, and the board can use it against you in the future should you face disciplinary action.
Board Investigation
If your case is more severe, the board will refer it to its enforcement unit for further investigations. The investigator will interview the complainant, you, and other parties who might have relevant details about the case. If the investigator establishes that clear, convincing evidence exists to support the accusations against you, the CSLB may take one of these steps:
- Refer the case to the board-sponsored arbitration.
- The board may file an injunction petition requiring you to take a particular action or refrain from taking a specific action.
- Issue a citation fining you a maximum of $5,000 and necessitating you to take particular remedial actions.
- Send the case to the Attorney General for the filing of an Accusation (if you are already licensed) or Statement of Issues (if you are a license applicant)!
- Send the case to the district attorney for the filing of criminal charges
Filing of an Accusation or Statement of Issues
If the board sends the case to the Attorney General and the Attorney General files a formal Accusation or Statement of Issues, they will be seeking to revoke or suspend your license. Once an Accusation or Statement of Issues has been filed, the Attorney General will notify you via mail. You have fifteen days from when the notice was mailed to respond to it if you wish to defend your license. Responding means filing a Notice of Defense with the board. If you do not file a Notice of Defense on time, the board will issue a default revocation or suspension order against your license.
Administrative Hearing
If you file a Notice of Defense, your case will be subject to an administrative proceeding at one of the locations of the Office of Administrative Hearings (OAH) in Los Angeles, San Diego, Oakland, and Sacramento. The hearing will be presided over by an administrative law judge (ALJ) and is the equivalent of a trial in criminal court.
Based on the estimated length of the proceeding, the OAH will schedule to hear the case one or several months after receipt of the Notice of Defense. During this time, your lawyer can negotiate a settlement with the board to avoid going to the hearing. If the board refuses to settle, the case will be subject to a hearing.
During the hearing, the board, represented by the Attorney General or a Deputy Attorney General, is required to prove its case by clear and convincing evidence. The ALJ allows both parties to discover witnesses and documents before the proceeding and submit evidence that supports their case at the proceeding.
At the end of the proceeding, the judge will deliberate on the matter and propose a decision to the board within thirty days. Note that the judge’s decision is only a proposed one. That means the decision is nonbinding on the board. The board can opt to adopt the decision, whole or in part, modify it, or reject it altogether and substitute its own decision. It has 100 days to consider the judge’s proposed decision. Should it fail to act within these 100 days, the proposed decision will be considered adopted as the final decision.
Board Disciplinary Actions
Some of the decisions the board may take based on the facts of your case include the following:
- Dismissing the Accusation. If the judge had proposed that you did not commit any violation, and the board decides to adopt that decision, it will dismiss the Accusation against you. That means you will not be subject to any disciplinary action and will continue to practice as before.
- Issuing a letter of public reproval. The board may issue you a letter of public reproval (or public reprimand) if your offense is minor. This is an official letter from the board warning you not to commit any further violations and stating that you risk facing more severe discipline should you violate the law again. This letter is public record. The board posts it on its website, and everyone can access it. Generally, you can continue practicing without any restrictions.
- Imposing probation. The board can place your license on probation for a specific period. If your license is on probation, you can continue to practice, but your services will be subject to restrictions. The board can impose particular probationary conditions, which you must follow for you to continue to practice. These include meeting with your probation officer regularly, undergoing alcohol or drug abuse treatment, et cetera.
- Suspending your license. The board can also suspend your license. When the CSLB suspends your license, it means you will not be able to practice for a specific period.
- Revoking your license. License revocation is the most severe disciplinary action the board can impose against you. If the board revokes your license, you will not be able to practice indefinitely. However, you may be able to reapply for your license after a particular period. License revocation is reserved for the most severe violations.
- Denying you a license. The board might deny your license application if it believes you have failed to satisfy the eligibility requirements for licensure. Prevalent grounds for license denial include inadequate work experience, past disciplinary actions, and criminal convictions. If the board has denied your application for a license, you have little time to appeal.
Should you disagree with the board’s decision, you can file an appeal. However, the appellate judge will not consider further evidence, nor will they review the already present evidence. The only thing they will do is review your case to see whether the ALJ made any mistakes in applying the relevant statute.
Disciplinary Action for Criminal Convictions
The board can seek to impose disciplinary action against you if you have been found guilty of a criminal offense deemed significantly related to the duties, functions, and qualifications of contractors or general contractors. Both the courts and the board have a broad definition of what kinds of offenses are significantly related to a contractor’s duties, functions, and qualifications. Generally, any felony or misdemeanor that involves driving while intoxicated, fraud, theft, dishonesty, or violence can trigger board discipline, even when the offense did not have anything to do with a contractor’s business.
Find a Competent Professional License Defense Lawyer Near Me
The California contractor and general contractor licensing statutes are among the harshest nationwide. Should the CSLB revoke or suspend your license, it may be challenging for you to work, earn a livelihood, and care for your loved ones. If a board investigator has contacted you, or you have been notified that an Accusation has been filed against you, you want to take proactive measures to safeguard your career and livelihood. At San Jose License Attorney, we can provide you with the rigorous representation you require to retain your professional license and continue working. Call us at (669) 330-4517 to share the details of your case.
