Quick Answer: Report unlicensed contractors to your state contractor licensing board, state Attorney General’s office, and Better Business Bureau. Verify contractor licenses before hiring at your state’s licensing board website—unlicensed contractors void warranties, homeowners insurance claims, and building permits.
Why Are Unlicensed Contractors Illegal?
Unlicensed contractors operate without required state credentials, insurance, and bonding. They bypass building codes, safety inspections, and consumer protections. Hiring unlicensed contractors can void your homeowners insurance and building permits.
Similar to reporting bad contractors, unlicensed contractor issues fall under consumer protection laws.
Where to Report an Unlicensed Contractor
1. State Contractor Licensing Board
Find Your State Board: Google “[Your State] contractor licensing board”
Examples:
- California: Contractors State License Board at CSLB.ca.gov or 1-800-321-CSLB
- Florida: Department of Business and Professional Regulation at MyFloridaLicense.com
- Texas: Texas Residential Construction Commission at TRCC.texas.gov
- Arizona: Registrar of Contractors at ROC.az.gov
2. State Attorney General’s Office
File a consumer complaint at your state AG website or call your state’s consumer protection hotline.
3. Better Business Bureau
File a complaint at BBB.org
4. Local Building Department
Report unlicensed contractors to your city or county building department if they’re working on projects requiring permits.
How to Verify a Contractor’s License
Before hiring, verify the contractor’s license online at your state licensing board website. Check for:
- Valid, active license
- Proper classification (general contractor vs. specialty)
- Insurance and bonding status
- Disciplinary actions or complaints
- Workers’ compensation coverage
Step-by-Step: How to Report an Unlicensed Contractor
Step 1: Confirm They’re Unlicensed
Search your state licensing board website. Get the contractor’s full name, business name, and address.
Step 2: Document Evidence
- Contracts or estimates
- Business cards
- Photos of their work
- Text messages or emails
- Canceled checks or payment records
- Advertisements or flyers
Step 3: File a Complaint with State Licensing Board
Most states have online complaint forms. Include all documentation and evidence.
Step 4: Report to Attorney General
File a consumer protection complaint with your state AG’s office.
Step 5: File a Police Report (if fraud occurred)
If the contractor took payment and abandoned the job, file a police report for theft or fraud.
What Happens After You Report?
State licensing boards can:
- Issue cease and desist orders
- Fine the unlicensed contractor ($1,000-$10,000 per violation)
- Pursue criminal charges (misdemeanor or felony in some states)
- Refer cases to prosecutors
Frequently Asked Questions
Is it illegal to hire an unlicensed contractor?
In most states, it’s not illegal to hire one, but you lose consumer protections, warranties, and insurance coverage. The contractor is breaking the law by working without a license.
Can I report an unlicensed contractor anonymously?
Most state licensing boards accept anonymous complaints, but providing your contact information helps investigations.
What if I already paid an unlicensed contractor?
File complaints immediately. Small claims court may be your best option for recovering money. Unlicensed contractors cannot sue for payment in most states.