California Construction Law Updates 2025, Part 3

In Parts 1 and 2 of our blog series, we discussed legal changes affecting building standards, inspections, housing development fees, additional bills that may affect contracting businesses in California and more. In Part 3, we continue to cover and provide a brief overview of changes to California law that affect construction practices in California.

The “Handyman” Exception to the California Licensure Requirement

Exciting news has emerged in the California legislature for handymen involved in minor work projects. For the first time since 2005, California has revised its Business & Professions Code to increase the limit qualifying for unlicensed handyman work from $500 to $1,000, effective on January 1, 2025. Due to rising inflation, the costs of small projects often exceed $500, thus the legislature updated the limit increase to allow unlicensed handymen to take on smaller projects without requiring a contractor’s license. This limit increase remains subject to certain exceptions, as explained below.

AB 2622 – Unlicensed Handyman Projects: as a result of the enactment of AB 2622, an unlicensed handyman will now be able to complete small projects whose materials and labor costs do not exceed $1,000. AB 2622 amends California Business & Professions Code §§ 7027.2 and 7048.

• Limitations: This handyman exception requires that the party performing the work not hire any additional workers, that the work performed not be part of a larger construction project that surpasses the $1,000 limit, and that no building permits are required in the performance of the work. Additionally, the work completed by a handyman must be considered “casual, minor, and inconsequential” to fall within legal limits.
• Handyman Advertising: AB 2622 allows an unlicensed person to advertise construction work if the total contract price for labor, materials, and all other costs associated with the project is less than $1,000. The advertisement for these services must mention the individual does not have an active contractor’s license.

If you have questions about the possible impact of AB 2622 on your business, please contact the expert construction law attorneys at Ghassemian Law Group here. Look for our continued blog updates, which will cover topics related to construction practice in California.