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CSLB enforcement reports stings, disaster response and rising penalties in 2025
Summary
Enforcement highlighted 2025 activity: SWIFT disaster response and 28 statewide sting operations, 2,770 investigations, 869 legal actions, and increased civil penalties including new minimums for workers' comp violations enacted by SB291.
Enforcement staff told the board that 2025 saw extensive proactive and reactive enforcement activity, including disaster response, sting operations and increased use of civil penalties.
The statewide investigative fraud team (SWIFT) staffed disaster recovery centers following the January 2025 wildfires and conducted outreach for 99 days in affected areas. SWIFT investigators led sweeps, posted consumer warning signage, and worked with the California Department of Insurance and the Labor Enforcement Task Force to verify licenses and workers' compensation policies at job sites. Across the state the unit participated in 396 sweep days, conducted 28 sting operations and completed 2,770 investigations, with 869 matters resulting in administrative or criminal legal filings and 342 referrals to prosecutors.
Enforcement reported a steady increase in use of citation and suspension tools. Joint enforcement task force actions led to license suspensions for outstanding tax and wage liabilities totaling more than $22 million; citation enforcement produced civil penalties and over $900,000 in assessed civil penalties in certain LEF inspections. CSLB cited a series of high-profile cases where contractors were accused of diversion of construction funds, abandonment, failure to hold proper classifications, and lack of workers' compensation; investigators worked with district attorneys in multiple counties.
Staff also provided statistics on caseload and staffing: for July 1, 2025 to Jan 31, 2026 the division initiated 12,663 complaint investigations with a pending caseload exceeding the optimal level; enforcement reported 28 current vacancies among 228 positions and said recruitment was underway. The multiple offender unit completed 585 investigations of contractors with 10+ complaints and referred a number of cases for accusation or criminal prosecution.
Board members praised SWIFT's field work and asked staff to continue exploring resource and staffing options; staff said legal changes (including recent increases in minimum civil penalties) are expected to increase revenue for restitution and enforcement but may also increase contested case workload.
