2026 Contractor Legal Updates
By Jacob Yoneda, Attorney, Employment Law and Litigation
Whether you are a licensed contractor or someone hiring a licensed contractor, there are several changes to the California laws that took effect in January 2026 that affect licensed contractors and their businesses. While some changes in the law are largely administrative, others may require immediate updates to contracts in use. Read this summary prepared by JRG Attorneys at Law to understand how new laws may affect you and your projects.
Assembly Bill 521(B&P Code § 7071.4) – Limits CSLB’s liability in handling license bond alternative deposit claims
Assembly Bill (AB) 1002 (B&P Code § 7036) – Authorizes licensing actions arising from employee wage claims
Assembly Bill 1327 (B&P Code §7159) – Requires home improvement contracts to include telephone contact information provisions for email notices of cancellation
Senate Bill 517 (B&P Code § 7159) – Requires disclosure of subcontractors in home improvement contracts
Senate Bill 291 (B&P Code § 7099.2) – Increases penalty for workers' compensation coverage violations
Senate Bill 779 (Various Statutes) – Increases penalties for unlicensed work and other violations
Senate Bill 456 – License exemptions for mural artists
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