{"id":2797,"date":"2023-12-22T14:04:41","date_gmt":"2023-12-22T21:04:41","guid":{"rendered":"https:\/\/contractorslicensingschools.com\/blog\/?p=2797"},"modified":"2024-01-12T14:26:37","modified_gmt":"2024-01-12T21:26:37","slug":"reminder-for-contractors-civil-penalties-have-changed-for-contractors-via-section-884","status":"publish","type":"post","link":"https:\/\/contractorslicensingschools.com\/blog\/reminder-for-contractors-civil-penalties-have-changed-for-contractors-via-section-884\/","title":{"rendered":"Reminder For Contractors: Civil Penalties Have Changed For Contractors Via Section 884"},"content":{"rendered":"

A reminder to all contractors that in August of 2023, the Contractors State License Board (CSLB) in California made crucial changes to Section 884 of Title 16, Division 8, of the California Code of Regulations.<\/a><\/p>\n

These changes are generally about civil penalties in case of litigation by a client against a contractor, with the CSLB amending a full schedule of changes with associated costs based on the gross amount of damages created by the contractor in a civil suit.<\/p>\n

We\u2019ll cover the basics of these changes so contractors can enter 2024 armed with the knowledge to protect themselves from serious penalties.<\/p>\n

Overview of Section 884 Amendments<\/h3>\n

The Key Information: Changes To Civil Penalties<\/strong><\/p>\n

The amendment to Section 884 introduces new penalty ranges for various violations under California law as per the CSLB.<\/p>\n

For example, violations under Section 7028<\/a> now carry a penalty ranging from $200 to $8,000, while more severe violations, such as those under Section 7114, can attract penalties ranging from $500 to $30,000. There are roughly fifty.<\/p>\n

We\u2019ll attach a full civil penalties schedule for Section 884 Amendments at the end of this article.<\/p>\n

How Are Civil Penalties Assessed By The CSLB?<\/strong><\/p>\n

The revised regulations allow the Registrar to consider several factors when determining penalties. Most of these are already applied, as the CSLB takes every contractor\u2019s unique case into consideration when determining punishments.<\/p>\n

The new changes outline that the Registrar can include the presence of multiple violations, a history of previous offenses, bad faith, the seriousness of the violation, and violations affecting vulnerable populations like seniors or disabled persons when outlining the penalties for civil suits.<\/p>\n

Additionally, where a citation lists multiple violations related to the same construction project, the total penalty assessment in each citation is capped at different maximum amounts depending on the nature of the violations, with a general cap of $8,000, but going up to $15,000 or $30,000 for more serious offenses.<\/p>\n

What Do Contractors Need To Do To Stay Compliant?<\/h3>\n

If you\u2019re a contractor who is aware of the changes, you can stay compliant with the changes. As always, contractors who tend to be compliant tend to stay compliant \u2013 so you probably don\u2019t have anything to worry about.<\/p>\n

Bad actors; however, are in serious trouble with these new fees, as they can become extremely punitive to contractors who have a history of taking advantage of clients. We\u2019re not really writing for those people anyway \u2013 chances are they don\u2019t know and don\u2019t care about regulation changes.<\/p>\n

However, for good contractors like yourself, regular review of your practices makes sense, so you can ensure that you align with these new CSLB standards.<\/p>\n

In addition to the new Section 884 changes, here\u2019s some ways to stay compliant with Section 884 and other related regulations, contractors in California should be aware of the following:<\/p>\n