CSLB arbitration program: 41‑day average award turnaround, provider urges higher voluntary limits and outreach

The Contractors State License Board Enforcement Committee heard an overview of the CSLB arbitration program on April 11 and a vendor representative urged raising the voluntary arbitration limit and expanding public education.

Karen (identified as president of the MCC Arbitration and Mediation Center), the program’s vendor, told the committee that in 2024 the arbitration program issued about 410 awards with total awards close to $5 million. She said the program’s current average turnaround from filing to award is 41 days.

Karen explained that CSLB arbitration has both mandatory and voluntary tracks. Mandatory arbitration is tied to the bond limit, which she said is currently $25,000; voluntary arbitration covers awards between $25,000 and $50,000 when both parties agree. She said the voluntary limit has been $50,000 for more than 20 years and recommended increasing the voluntary ceiling — she suggested $100,000 — because contract values have grown.

"One of my goals would be to be able to increase the limits of the voluntary arbitration," Karen said, adding that arbitration is binding and private and that the program is offered at no cost to homeowners or contractors.

Karen said arbitration is cost‑effective for CSLB (a flat fee model) and that the program now accepts electronic filings and remote hearings, which she credited for faster processing. She also said the program sends evaluation forms after hearings and has an average rating of 4.8 out of 5. She noted challenges such as finding arbitrators with both procedural skill and trade experience.

Committee member Andrea (last name not specified on the transcript) praised the arbitration program and recommended outreach and marketing to make homeowners aware of the option before disputes escalate.

Ending: The committee commended the vendor presentation and discussed potential education and outreach next steps; no vote was taken.