New Requirements for a Home Improvement Contractor License

A previous blog post details the legal requirements for home improvement contractors in New Jersey. However, since that time, the law has been updated, imposing new minimum requirements that contractors performing home improvement work must satisfy in order to obtain a license from the New Jersey Division of Consumer Affairs.   

Previously, applicants for a home improvement license just had to submit an application, pass a background check, and provide proof of insurance.  There were no requirements that the contract had experience or education in the construction field.  Now, the State of New Jersey has passed a new law that establishes a number of new requirements. The new requirements for home improvement contractor licensing go into effect February 1, 2026.  The general requirements (to be further defined by regulations yet to be adopted) are set forth in N.J.S.A. 45:5AAA-7 as follows: 

1. be at least 18 years of age;

1. demonstrate completion of:

(1) through submission of an attestation as prescribed by the board, an apprenticeship program registered with or approved by the United States Department of Labor, or similar program as provided by a trade school or other facility accredited by a regional or national accrediting agency recognized by the United States Department of Education, that allows for the applicant to prepare for a career in home improvement or home elevation services; or 

(2) at least two years of experience performing home improvement services subject to the direct oversight of a home improvement contractor or a home elevation contractor, or performing home improvement and home elevation services subject to the direct oversight of a home elevation contractor. “Direct oversight” shall not require the supervising individual to remain on-site. An application for licensure shall require the signature of the applicant, the name and address of the home improvement or home elevation business for whom the applicant worked, and an attestation, in a form as determined by the board, that the applicant, when providing contracting services, adhered to industry best practices and followed standard procedures in a safe and healthy manner. The two years of experience required in this section may be obtained by an applicant who can demonstrate to the board, in a manner and form as determined by the board, the performance of services in home improvement or home elevation: 

(a) under a home improvement or home elevation contractor in another state or jurisdiction of the United States with, as determined by the board, substantially equivalent requirements to the requirements in this State; or 

(b) through work obtained by the applicant as a home improvement or home elevation contractor in another state or jurisdiction of the United States with, as determined by the board, substantially equivalent requirements to the requirements in this State; 

1. completion of educational requirements established pursuant to paragraph (1) of subsection b. of section N.J.S.A. 45:5AAA-6 and passage of an examination pursuant to paragraph (2) of subsection b. of section N.J.S.A. 45:5AAA-6;

1. submission of a disclosure statement, as prescribed by the board, stating whether the applicant has been convicted of any crime, which for the purposes of N.J.S.A. 45:5AAA-1 shall mean a violation of section 8 of N.J.S.A. 45:5AAA-8; and payment of all applicable fees. 

There are exceptions to these requirements for existing registered home improvement contractors who have been registered for 5 years and “who can demonstrate experience overseeing the performance of services for contracts (1) valued at a minimum of $120,000 and (2) that require the submittal of plans with more than one subcode shall qualify as a principal home improvement or principal home elevation contractor.”  N.J.S.A. 45:5AAA-13(a)-(b). 

Since it is unlawful to provide home improvement contractor services in the State of New Jersey without a license, it is critical that contractors understand and satisfy these new requirements before February 1, 2026, even for contractors with a current license. 

If you’re a contractor would like to retain NextGen Counsel LLC to review or prepare your home improvement contracts and provide guidance on compliance with the rules governing home improvement contractors, contact Michael H Ansell, Esq., via email or telephone, to discuss retaining NextGen Counsel LLC. 

Information contained in this post is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular situation, we urge you to consult with Michael H Ansell, Esq., or other competent legal counsel. 

NextGen is not engaged in the providing of tax advice.  NextGen does not offer, nor profess to provide any information or advice regarding the application or impact of federal, state, or local tax statutes, regulations, ordinances, guidelines, advisory opinions or other requirements or information provided by governmental agencies and authorities.  NextGen strongly recommends that you consult with your tax professional regarding the applicability and impact of the foregoing.  

Disclaimer: 

Information contained in this post is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the with Michael H. Ansell, Esq., or other competent legal counsel.