What are "unlicensed" contractors prohibited from doing?

Unlicensed contractors are prohibited from legally performing paid home improvement work because operating without a license goes against state regulations that are designed to protect consumers. In New York, a home improvement contractor must hold the necessary licenses to ensure that they meet certain standards of competency, financial responsibility, and knowledge of the law. This licensing requirement helps to safeguard homeowners from potential fraud or substandard work.

While unlicensed contractors may technically be able to work under certain conditions—such as partnering with a licensed contractor—perform advertisements, or accept deposits for jobs they are not legally eligible to perform, their inability to conduct paid home improvement work legally stands out as a vital aspect of maintaining industry standards and protecting consumer rights. Thus, any payment for home improvement work done by an unlicensed contractor may lead to legal repercussions for both the contractor and the homeowner.