How to Fight Back Against a CSLB License Suspension
If your contractor’s license has been suspended by the Contractors State License Board (CSLB), you need to fight back. When your license is suspended, you lose access to your livelihood. You can’t legally do work, place bids, or maintain your reputation. You might feel trapped by the situation and wonder what you can do. Luckily, there are definable steps you can take to fight back with the help of an experienced construction attorney.
At Plumtree & Brunner, LLP, our California construction lawyers are here to help. We walk you through the process and challenge the suspension. Let us review your case and get to work right away.
Why Was My License Suspended by the CSLB?
To learn exactly why your license was suspended requires some investigation and a meeting with you. However, there are several common reasons the CSLB suspends contractor licenses:
- Bond Issues: If your surety bond is canceled, reduced, or not renewed, CSLB will suspend your license until a new bond is filed.
- Insurance Problems: If your workers’ compensation insurance lapses, this could be a reason for suspension.
- Failure to Renew: There are a lot of deadlines you have to track, and you might have missed one. This can cause a suspension, but can be fixed.
- Disciplinary Actions: Suspension could be used as a disciplinary action. This might stem from complaints about contract violations or misuse of funds. It could also happen because of complaints about poor workmanship.
- Legal Judgments: A court judgment may also lead to suspension. Judgments could affect your bonding in ways that trigger it.
Immediate Steps to Take After Suspension
If you receive notice of suspension, act quickly. Delays can worsen the situation and damage your business reputation.
Review the CSLB Notice Carefully
The CSLB will provide written notice explaining the reason for suspension. Pay close attention to deadlines for response or corrective action.
Correct Compliance Issues
If the suspension is due to a canceled bond, obtain a new surety bond and file it with CSLB. If workers’ compensation insurance lapsed, get a new policy and show it to the CSLB. If you missed some renewal fees, get them paid and provide proof to the agency.
File for Reinstatement of Your Contractor’s License
Once you have fixed any compliance issues, you can ask for reinstatement of your license. This could require filing for a new original license if your suspension lasted over five years. However, in most cases, the suspension does not last this long and you can seek to lift the suspension of your existing contractor’s license.
How Do I Fight Back Against a CSLB Suspension?
If your CSLB suspension is because of some disciplinary action, the steps are different. Contractors have to defend themselves and demonstrate compliance with applicable rules and regulations.
With the help of a construction attorney, you should:
- Respond promptly to all complaints by consumers
- Gather documentation related to any allegations of misconduct
- Request a hearing to contest any disciplinary action
- Call witnesses and present evidence to support your claim
Long-Term Strategies to Prevent Future Suspensions
Fighting back against a suspension is only part of the battle. Preventing future issues is essential for protecting your business.
- Maintain Active Bonds and Insurance: Always ensure your surety bond and workers’ compensation insurance are current and filed with CSLB.
- Stay Current on Renewals: Keep renewal deadlines on your calendar, or use effective reminder software to ensure you don’t miss critical dates.
- Follow Contracting Rules: Never hire unlicensed subcontractors and use compliant written contracts for projects.
- Document Everything: Keep detailed records of projects, payments, and communications. Documentation can protect you in disputes and investigations.
Don’t Take a CSLB Suspension Laying Down: You Can Fight Back
Although a CSLB suspension is a very serious thing, it does not mean you have no power. The legal process specifically permits you to fight back. You can correct compliance issues, understand why it was suspended, and challenge any incorrect allegations made against you. No matter the reason, you deserve quality representation from a qualified California construction attorney.
Our team at Plumtree & Bruner, LLP helps you with your California construction needs. Contact us today for a consultation.
