This is the next article in my series discussing issues which stem from working as an unlicensed contractor in our area. My last article discussed what constitutes contracting without a license in Phoenix, Arizona. It also pointed out the role of an attorney and how important it is to retain counsel for help with these matters. In this article, I will discuss in further detail the penalties an individual may face for contracting without a proper license, how it can affect future business prospects, and the potential for civil lawsuits. Arizona has laws in place to protect customers from unlicensed contractors, and violating those laws can carry significant consequences. Contact my office today to schedule an initial consultation with a criminal defense lawyer and to discuss your specific situation.
ARS § 32-1151 makes it illegal to act as a contractor without a valid license in Arizona. A person can violate this law by advertising services, offering to perform, or performing construction services on projects that require a licensed professional. If an Arizona worker is caught contracting without a license, they may face criminal charges. The first offense is usually a Class 1 misdemeanor and is punishable by up to six months in jail and a fine of $2,500. Subsequent offenses can result in harsher penalties. People who violate our state’s laws could be issued a cease and desist order and be subject to administrative fees imposed by the Arizona Registrar of Contractors (ROC). Additionally, complaints and violations are posted publicly. Another company may not want to hire the person because of the potential liability they bring.
Violating licensing laws can make starting one’s own business in the future difficult. Insurance providers may consider an individual to be at higher risk. This can mean paying a premium for general liability or contractor’s insurance. A conviction could make bonding companies unwilling to back them and disqualify a person from consideration in winning bids. Lastly, past violations can damage a person’s reputation. Many people hire contractors based on word of mouth and reputation. A potential client could move onto a different contractor if they realize the violation occurred. Contracting without a license may seem like a harmless shortcut in the short term. But it can make the path to entrepreneurship much more difficult in the long run.
A client can take an unlicensed contractor to court to get their money back. An individual can file a civil lawsuit seeking restitution (a full refund of what they paid), and additional damages. Consider this example. A homeowner hired someone who held themselves out to be a licensed contractor and paid them $15,000 to replace all the windows in the house. The homeowner is not displeased with the work, but may still file a civil lawsuit. The Court may require the person who violated the licensing laws to return the full $15,000. Alternatively, if the homeowner notices that the worker failed to properly install the windows, they could request that the Court assess additional damages.
Facing criminal and civil penalties can be scary and stressful. Contact an attorney if you need help. A defense attorney can review your case to assess whether the charges are valid and the work that was performed required a license. It is possible for a lawyer to work towards getting penalties reduced through negotiation. We can help protect your interests and offer support surrounding becoming properly licensed and compliant with state law. Handling these complex issues alone can be risky considering the potential consequences.
At Barber Law Group, we have experience in helping Arizona workers respond to licensing issues, defend against penalties, and get back on track. Contact my firm online to speak with a Phoenix criminal defense lawyer and to schedule an initial consultation. We can discuss your situation and make a plan for the best way to address it. My office also services Maricopa County areas like Mesa, Glendale, Scottsdale, Chandler, and Gilbera as well as Pima County residents in Tucson.