§ 9306 Subcontractor Payment Notice Requirement

Civil Code·California

AI SummaryVerified

Key Takeaways

•If a subcontractor is paid more than $400 for a job, they must give a notice as required by law.
•If they don't give this notice, they can get in trouble with the state licensing board.
•This rule only applies to subcontractors who have a state license.

Example

A licensed plumber is hired to fix pipes in a new house for $500 but forgets to send the required notice to the homeowner.

Because the plumber didn’t send the notice and was paid more than $400, they could face disciplinary action, like a fine or losing their license.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 9306 Subcontractor Payment Notice Requirement

If the contract of any subcontractor on a particular work of improvement provides for payment to the subcontractor of more than four hundred dollars ($400), the failure of that subcontractor, licensed under the Contractors’ State License Law (Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code), to give the notice provided for in this chapter, constitutes grounds for disciplinary action under the Contractors’ State License Law. (Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)

Last verified: January 21, 2026

Key Terms

subcontractor work of improvement four hundred dollars ($400)Contractors’ State License Law disciplinary action

References

Official text at leginfo.legislature.ca.gov
California Legislature. Civil Code. Section 9306.

§ 9306 Subcontractor Payment Notice Requirement

Civil Code·California

AI SummaryVerified

§ 9306 Subcontractor Payment Notice Requirement

Key Takeaways

•If a subcontractor is paid more than $400 for a job, they must give a notice as required by law.
•If they don't give this notice, they can get in trouble with the state licensing board.
•This rule only applies to subcontractors who have a state license.

Example

A licensed plumber is hired to fix pipes in a new house for $500 but forgets to send the required notice to the homeowner.

Because the plumber didn’t send the notice and was paid more than $400, they could face disciplinary action, like a fine or losing their license.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 9306 Subcontractor Payment Notice Requirement

Last verified: January 21, 2026

Key Terms

subcontractor work of improvement four hundred dollars ($400)Contractors’ State License Law disciplinary action

References

Official text at leginfo.legislature.ca.gov
California Legislature. Civil Code. Section 9306.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References