Handyman insurance clients ask to see.

California's $1,000 line, read closely

Since January 1, 2025, Assembly Bill 2622 has set California's minor work exemption at $1,000, up from $500. Under Business and Professions Code 7048, the exemption covers a job only when all of this is true:

• The total price for labor, materials and all other items is under $1,000, counting every contract on that job.
• The work is casual, minor or inconsequential, and it does not require a building permit.
• The job is not part of a larger or major operation, and it was not divided into smaller contracts to get under the limit.
• You do not advertise or use a sign, card or other device suggesting you are a contractor or qualified to act as one. CSLB says unlicensed people can advertise for work up to $1,000 only if the ad discloses that they are not licensed.
• You do not employ anyone to do or help with the work.

Missing one condition costs more than a fine. Under Section 7031, a contractor who needed a license and lacked one generally cannot sue to collect payment for the work, and the customer can sue to recover all compensation paid. Section 7028 makes unlicensed contracting a misdemeanor; a first conviction is punishable by a fine of up to $5,000, up to six months in county jail, or both.

For insurance, the risk sits in the application. When you describe your work to an underwriter, describe what you actually do, including any permit jobs, because the policy is written around that description. If your work is outgrowing the exemption, read does a handyman need a license and insurance in California and plan the move to contractor insurance.

Handyman limits in other states

Outside California, the handyman threshold varies by state. Arizona, Oregon and Nevada each use a $1,000 figure but draw the line differently, so check the statute where the job is:

Arizona

A.R.S. 32-1121(A)(14) exempts casual or minor work on one project when the aggregate contract price, including labor, materials and all other items, is under $1,000. The exemption does not apply if the work requires a local building permit, if it is part of a larger operation, or if the job is divided into smaller contracts to evade the law. It also does not apply to anyone whose advertising fails to disclose that they are unlicensed, using the words "not a licensed contractor." Subsection D keeps fire safety work and work connecting to natural gas, propane or other fuel gas supplies outside the exemption.

Oregon

ORS 701.010(4) exempts a person working on one structure or project when all of that person's contracts together total less than $1,000 and the work is casual, minor or inconsequential. It does not apply to anyone who advertises or uses a sign, card or other device suggesting they are a contractor.

Nevada

NRS 624.031(6) exempts work to repair or maintain property valued at less than $1,000, including labor and materials. It does not apply if the work requires a building permit, is the kind done by a plumbing, electrical, refrigeration, heating or air-conditioning contractor, or is part of a larger project valued at $500 or more.

If you work in more than one state, the license question and the insurance question both change at the state line. Start with do contractors need insurance to work in another state and contractor license bond requirements by state.

Official sources

• CSLB Industry Bulletin #24-07: License Requirement for Minor Work Increases from $500 to $1,000 (Dec. 31, 2024)
• California Business and Professions Code 7048 (minor work exemption)
• California Business and Professions Code 7031 (unlicensed contractor actions)
• California Business and Professions Code 7028 (penalties)
• California Business and Professions Code 7125 (workers' comp certificate or exemption)
• California Labor Code 2750.5 (presumption of employee status)
• Arizona Revised Statutes 32-1121
• Oregon Revised Statutes 701.010
• Nevada Revised Statutes 624.031
• IRMI: Care, Custody, or Control Exclusion in the CGL (Craig Stanovich)