This is my next article in my series discussing contracting without a license in Phoenix, Arizona. My last article provided an overview of the topics I will be writing about including what constitutes a violation, and the penalties and ramifications one might face in the future. It also stressed how important it is to secure legal counsel immediately if you are facing charges. In this article, I will address what specific types of acts constitute this offense and options for one who has been cited for contracting without a license. If you are in need of assistance then contact my office today to speak with a criminal defense lawyer.
It is illegal for Arizona workers to hold themselves out as contractors, or to bid on or perform work without a license
The state of Arizona takes unlicensed contracting seriously and violations can have several negative consequences. The Arizona Revised Statutes § 32-1151 makes it unlawful for any person or business to engage in the business of contracting in any capacity. Some examples of acts that may constitute a violation include:
- Advertising as a contractor online or on social media without a license
- Submitting a bid for work which requires a contractor’s license
- Performing work that exceeds the handyman exemption
- Accepting payment for labor and materials on a project
Arizona allows a person to perform minor repairs or make improvements without needing a license if certain criteria are met. This handyman exemption (ARS § 32-1121(A)(14)) is limited in scope to jobs that cost less than $1,000 in total and for work that does not require a permit. The exception gives a person the freedom to help a friend replace a faucet or paint a room without needing to get licensed.
There are significant consequences for contracting without a license. ARS § 32-1164 classifies it as a Class 1 misdemeanor. It can result in fines up to $2,500, up to six months in jail, restitution to the customer/victim, payment of all related taxes, and a criminal record. In addition to potential penalties, choosing to violate these laws can impact one’s ability to get a contracting license in the future. The Arizona Registrar of Contractors may look upon prior violations as evidence of untrustworthiness or disregard for the law and ultimately deny or delay approval. Consider this example. Joe is a handyman. He makes a post in a Facebook group offering bathroom remodels. A homeowner contacts Joe and the two agree upon $5,000 for the job. The homeowner pays Joe in cash when the job is done. The handyman thinks what he is doing is innocent as he wants to help people while making some extra cash, but this job violates Arizona’s contractor licensing laws. The job is over the handyman exemption limit of $1,000 and Joe advertised his services online as if he were licensed. His actions constitute contracting without a license and he may face significant penalties and a misdemeanor charge.
Retain a Phoenix attorney as soon as possible if one has been cited for contracting without a license
If you have been cited for contracting without a license, do not try to handle it on your own. These charges can have serious consequences that impact an individual’s criminal record and ability to work as a contractor. Having a citation for this offense on your record can make it difficult to obtain a contractor’s license in the future, get hired, establish credibility and find clients, and access insurance. A person’s license application could be denied if there is evidence of prior unlicensed activity. It can seriously undermine an individual’s ability to ever run a legitimate, successful business. That is why consulting with an attorney immediately is so important.
A lawyer can be an advocate for you. Legal counsel may challenge the elements of the charge. It could be reduced or even dismissed if the elements are not met. The burden of proof lies with the State, and they must prove each element of the offense beyond a reasonable doubt. Our team can also fight to lessen charges and reach a resolution that does not result in a record.
Phoenix criminal defense lawyer if you have been cited or are under investigation for contracting without a license in Arizona. My office also services Maricopa County areas like Mesa, Glendale, Scottsdale, Chandler, and Gilbert as well as Pima County residents in Tucson.