Many contractors do not know that they have important rights and protections during a CSLB investigation. What should a contractor do or not do, say or not say, when they receive a CSLB investigation letter? Questions abound, but answers can be scarce. Below we discuss three issues every contractor should know during a CSLB investigation.
First, a contractor must be careful not to accidentally waive rights to which they are entitled. For example, many contractors are unaware that they are required by law to cooperate with the CSLB investigation and respond to questions about the allegations. However, the contractor also has a 5th Amendment right against self-incrimination. Cooperating with the CSLB investigator, while preserving a contractor’s 5th Amendment right, can be a daunting task. A contractor should obtain the guidance of an experienced attorney before responding to a CSLB investigator.
Second, if a contractor has had a complaint filed against them, they may receive a CSLB investigation letter asking for an explanation of the complaint’s allegations, why the contractor acted in the way that it did, and how the contractor did not violate any of the Contractor State License Laws. If the contractor fails to respond to the CSLB investigation letter or provides inadequate answers to the questions relating to the claims or allegations of the complaint, the CSLB investigator will initiate a formal investigation which may include interviews with CSLB investigators, investigations of the jobsite and quality of work, and/or the review of project documentation.
Finally, if the CSLB investigator finds grounds for disciplinary action, the investigator will consider the number of violations, history of offenses, any bad faith, the seriousness or harmfulness of the conduct, the victim’s circumstances, and whether the repairs are for emergency work in determining the type and extent of discipline. The discipline may consist of a letter of admonishment, denial of licensure or renewal, imposition of corrective action, penalties by citation, or license suspension or revocation through the accusation procedure.