• Contractors
• License Problems
• Outstanding Liabilities

Outstanding Liabilities: How They Work

This section describes how outstanding liabilities with government agencies can affect your license and how to resolve a liability on your record.

The Employment Development Department, Department of Industrial Relations, or the Franchise Tax Board, can notify CSLB of outstanding final liabilities owed by a contractor. A dishonored check submitted to CSLB is considered an outstanding liability. See Business and Professions Code Section 7145.5.

To resolve an outstanding liability:

• You will receive a 60-day notice to resolve the outstanding liability from CSLB.
• Submit all necessary documentation to show resolution of the liability to the CSLB Judgment Unit Headquarters Office.
• A confirmation notice will be sent to the contractor when the acceptable documentation has been received.
• If CSLB has not received any information about a resolution, the license will be suspended until the outstanding liability is resolved.

TIP Do not wait until the last few days before the suspension occurs to try to resolve the liability. It is often difficult to gather all necessary paperwork at the last minute. Preventing your license from being suspended is a top priority with us. However, sometimes problems arise which cannot be immediately resolved.