Do all contractors need a bond in California?

Yes, all licensed contractors in California are required to carry a $25,000 contractor license bond. This is a CSLB requirement and there are no exceptions for licensed contractors.

However, there is an important distinction: not all people doing construction work are required to be licensed. In California, you do NOT need a contractor's license for projects that total less than $500 in combined labor and materials. This is known as the "handyman exemption."

Here is who needs a bond: All CSLB licensed contractors (general and specialty) Contractors using another person's license (additional $15,000 bond)

Here is who does not need a bond: Handymen working on projects under $500 Homeowners doing their own work Employees of licensed contractors

Be cautious of anyone claiming they do not need a license or bond for work that clearly exceeds $500. This is one of the most common signs of an unlicensed contractor operating illegally in Sacramento.