Contractor vs. Handyman: When Does California Law Require a License? | Expert Guide

One of the most common questions Sacramento homeowners ask is: "Do I need a licensed contractor for this, or can a handyman do it?" California law draws a clear line, but the details matter. Getting it wrong can result in fines, liability, and work that doesn't meet code. This guide explains exactly when a license is required and when the handyman exemption applies.

The $500 Rule

California Business and Professions Code Section 7028 establishes the fundamental rule:

Any person who performs work requiring a contractor's license when the total cost of labor and materials is $500 or more must hold a valid CSLB contractor's license.

This $500 threshold includes everything:

Labor charges
Material costs
Permits and fees
Overhead and profit

If the total value of the project is $500 or more, a license is required. Period.

The Handyman Exemption

For projects valued under $500 total (labor + materials), an unlicensed person can legally perform the work. This is commonly called the "handyman exemption."

What a Handyman CAN Legally Do (Under $500)

Minor plumbing repairs (fixing a leaky faucet, replacing a toilet flapper)
Small painting jobs
Installing shelves or curtain rods
Minor drywall patches
Basic yard work and cleanup
Furniture assembly
Replacing light fixtures (if no new wiring is needed)
Caulking and weatherstripping
Minor carpentry repairs
Hanging pictures and mirrors
Pressure washing

What a Handyman CANNOT Do (Regardless of Price)

Even for jobs under $500, certain work always requires a licensed contractor:

**Any work requiring a building permit** — If the project needs a permit, it needs a licensed contractor to pull it
**Electrical work beyond simple fixture replacement** — New circuits, panel work, rewiring
**Plumbing rough-in or repiping** — New plumbing lines, water heater installation, gas piping
**Structural work** — Load-bearing wall modification, foundation repair
**HVAC installation** — Furnace, AC, or duct system installation
**Roofing** — Full roof replacement or significant repair
**Asbestos or lead abatement** — Requires specialized licensing

The Gray Areas

Job Splitting Is Illegal

Some unlicensed operators try to get around the $500 rule by splitting one project into multiple "sub-$500" jobs. For example, painting one room for $400, then painting the next room for $400, and the third for $400.

This is illegal. The CSLB looks at the total project, not individual invoices. If the complete scope of work was discussed or planned as a single project, the total combined cost determines whether a license is required.

Material Costs Count

A common misconception: "I'll buy the materials, so the handyman is only charging for labor." Doesn't matter. The $500 threshold includes the total value of labor AND materials, regardless of who purchases them. If the labor is $300 and materials are $250, the project is $550 — and requires a license.

Multiple Visits, One Project

If a handyman comes back multiple times to complete what is essentially one project, the total cost of all visits counts as one project. You can't circumvent the $500 threshold by scheduling work across multiple days.

Common Projects and Whether They Need a License

Projects That ALWAYS Need a Licensed Contractor

Kitchen Remodel — Yes, always. Even a "minor" kitchen remodel typically costs well over $500 and involves multiple trades.

Bathroom Remodel — Yes. Plumbing, electrical, and tile work all require licensing and permits.

Room Addition — Absolutely. Structural work, permits, multiple trades.

Roof Replacement — Yes. Even for a small roof, the cost far exceeds $500 and requires permits.

Electrical Panel Upgrade — Yes. C-10 electrical license required. Permits mandatory.

Water Heater Replacement — Yes. Involves plumbing and often gas work. C-36 plumbing license required.

HVAC Replacement — Yes. C-20 HVAC license required. Permits mandatory.

Window Replacement — Usually yes. Cost almost always exceeds $500, and energy compliance permits are required.

Deck Construction — Yes. Structural, requires permits.

Fence Installation — Usually yes. Most fence projects exceed $500. C-13 fencing license.

Concrete Work — Driveway, patio, walkway replacement — yes. C-8 concrete license.

Solar Panel Installation — Always. C-46 solar license required.

Pool Construction or Renovation — Always. C-53 swimming pool license.

Projects That MAY Be Handyman Territory (Under $500)

Fixing a running toilet — If it's a simple flapper or fill valve replacement, usually under $500.

Patching a small drywall hole — Minor repair, typically under $500.

Replacing a faucet — Simple swap (no new plumbing lines), may be under $500.

Painting a single room — Depending on size, may be under $500.

Installing a new doorknob/deadbolt — Typically under $500.

Cleaning gutters — Under $500.

Replacing a light switch or outlet cover — Minimal work, under $500.

Caulking around tub/shower — Under $500.

Projects in the Gray Zone

Interior painting (multiple rooms) — Probably over $500 = needs a license.

Installing a garbage disposal — Could be under or over $500 depending on complexity.

Replacing a light fixture — If it's a straightforward swap with existing wiring, may be under $500. If new wiring is needed, it requires a C-10 electrician regardless of cost.

Landscaping — Small jobs under $500 are fine. Irrigation system installation, retaining walls, and larger landscape projects need a C-27 license.

Risks of Using a Handyman for Licensed Work

For the Homeowner

**No bond protection** — If something goes wrong, no surety bond to claim against
**No workers' comp** — You're liable for injuries
**No CSLB recourse** — The CSLB only handles complaints against licensed contractors
**Permit issues** — Unlicensed workers can't pull permits. Unpermitted work creates problems.
**Insurance risks** — Your homeowner's insurance may not cover damage from unlicensed work
**Quality concerns** — No licensing exam means no verified knowledge of codes and standards
**Resale problems** — Home inspectors and buyers notice unpermitted, substandard work

For the Handyman

**Criminal penalties** — Contracting without a license is a misdemeanor: up to 6 months in jail and/or $5,000 fine (first offense)
**Repeat offenders** face larger fines and longer jail time
**Cannot enforce contracts** — Unlicensed contractors can't sue for non-payment in California
**Civil penalties** — Up to $15,000 in administrative fines per violation

How to Find the Right Professional

For Small Jobs (Under $500) A skilled handyman can be a great resource for minor repairs and maintenance. Look for: - Positive reviews and references - General liability insurance (even if not required, it protects your property) - Clear communication about scope and pricing - Willingness to tell you when a job needs a licensed professional

For Larger Projects ($500+) Hire a licensed contractor. Use our [search tool](/search/) to find CSLB-verified contractors in Sacramento by trade, or browse our [trade categories](/trades/siding/). Always verify the license at cslb.ca.gov.

When in Doubt, Hire Licensed

If you're not sure whether your project needs a licensed contractor, err on the side of caution and hire one. The cost difference is usually small compared to the protection you gain. Licensed contractors bring verified knowledge, financial protections, insurance, and accountability that no amount of YouTube tutorials can replace.

Check out our badge guide to understand the verification indicators we display on contractor profiles, and review our hiring checklist before making your decision.