What happens when your contractor's license lapses in Washington
When your Washington contractor's license expires and you do not renew it before the important date, the Department of Labor & Industries (L&I) places it in inactive status. You cannot legally work as a contractor in Washington until you reinstate it. The reinstatement process depends on how long your license has been inactive and whether you have any outstanding violations or unpaid fees.
The good news: reinstatement is usually faster and cheaper than getting a new license from scratch. You do not have to retake the licensing exam or start your experience hours over. Instead, you will pay a reinstatement fee, bring your account current, and submit a short form to L&I.
The timeline matters. If your license has been inactive for less than five years, reinstatement is straightforward. If it has been inactive for five years or longer, L&I may require you to pass the current licensing exam again before they will restore your license.
Key Takeaways
- You can reinstate a lapsed Washington contractor's license by paying the reinstatement fee and any outstanding fines or penalties to the Department of Labor & Industries.
- If your license has been inactive for fewer than five years, you typically do not need to retake the exam; if it has been inactive for five years or more, you will likely need to pass the current exam.
- You must complete the reinstatement process form and submit it to L&I along with proof that your account is current.
- The reinstatement fee varies depending on your license classification and whether you have unpaid violations or disciplinary actions on your record.
Steps to reinstate your license
Start by contacting the Department of Labor & Industries directly to confirm your license status and find out exactly what you owe. You can reach L&I's Construction Trades section by phone or through their website. Have your license number ready when you call.
Once you know what is owed, gather the following: the reinstatement fee (which L&I will quote you), proof of any unpaid penalties or fines, and your current mailing address. If your address has changed since your license lapsed, you will need to update it as part of the reinstatement.
Complete the Reinstatement process form (available on the L&I website or by request). This form is shorter than an original process and asks for your license number, the reason for the lapse, and confirmation that you are still working in the same trade classification. Submit the form along with your reinstatement fee payment.
L&I will review your process and your account history. If there are no outstanding violations and your fee is received, they will issue a reinstatement notice and your license will return to active status. This typically takes two to four weeks, though it can be faster if you submit everything correctly the first time.
When you need to retake the exam
Washington requires you to pass the current licensing exam again if your contractor's license has been inactive for five years or longer. This is because building codes, safety standards, and trade practices change over time, and L&I wants to may support that contractors returning to work are current with those changes.
If you fall into this category, you will need to schedule and pass the exam before L&I will reinstate your license. The exam covers the same material as the original licensing test for your trade classification. You can study using the same resources available to new applicants, including study guides and practice exams published by L&I.
Once you pass the exam, submit your passing score along with your reinstatement process and fee. L&I will then process your reinstatement. The exam requirement adds time to the process, so plan for six to eight weeks total if you need to test.
Unpaid fines and disciplinary actions
If your license was suspended or disciplined before it lapsed—for example, due to a complaint, safety violation, or unpaid penalty—you must resolve those issues before reinstatement. Check your account status with L&I to see whether any disciplinary actions are still open.
Common reasons for disciplinary holds include unpaid fines from a safety violation, an unresolved complaint from a customer or another contractor, or failure to carry required insurance. You will need to pay any fines in full and, if there is an open complaint, work with L&I to resolve it (usually by demonstrating corrective action or reaching a settlement).
If you are unsure whether your license has any disciplinary flags, ask L&I directly when you call about reinstatement. They can tell you exactly what needs to be cleared before your license can be restored.
Reinstatement fees and costs
The reinstatement fee itself is less than the cost of a new license, but the exact amount depends on your license classification (general contractor, specialty contractor, etc.) and how long your license has been inactive. L&I sets these fees and updates them periodically, so you will need to contact them for a current quote.
In addition to the reinstatement fee, you may owe late fees or penalties if your license lapsed while you had outstanding violations or unpaid fines. These are separate from the reinstatement fee and must be paid in full before L&I will process your process.
Payment is typically made by check or money order sent to L&I, though some payment methods may be available through their website. Ask L&I which payment method they prefer and whether they accept credit cards or electronic transfers.
What to do if L&I denies your reinstatement
Reinstatement is usually approved if you meet the basic requirements: you pay the fee, you resolve any disciplinary issues, and (if required) you pass the exam. However, L&I can deny reinstatement if there are unresolved complaints, ongoing safety violations, or if you do not meet the exam requirement.
If your reinstatement is denied, L&I will send you a written explanation. Read it carefully to understand which requirement you did not meet. Common reasons include an open disciplinary case, failure to pass the required exam, or incomplete process materials.
You have the right to request a hearing or appeal if you believe the denial was incorrect. Contact L&I's appeals section to learn about your options. In some cases, you may be able to reapply once you have resolved the underlying issue—for example, after you pass the exam or after a complaint is closed.
Keeping your license active after reinstatement
Once your license is reinstated, mark your renewal date on your calendar. Washington contractor's licenses must be renewed every two years. Renewal is simpler than reinstatement: you pay the renewal fee and submit a short form before the expiration date.
Set a reminder three months before your license expires so you have time to gather any required documents and submit your renewal. Many contractors lose their licenses straightforward because they miss the renewal important date, so staying organized is the easiest way to avoid going through reinstatement again.
You can also check your license status and renewal date anytime through the L&I website. Some contractors set up email reminders through their L&I account so they never miss a important date.
Frequently Asked Questions
How long does reinstatement usually take?
If your license has been inactive for fewer than five years and you have no outstanding violations, reinstatement typically takes two to four weeks from the time L&I receives your complete process and fee. If you need to retake the exam or resolve disciplinary issues, add four to eight weeks.
Can I work while my reinstatement is pending?
No. You cannot legally work as a contractor in Washington until your license is reinstated and active. Working without an active license can result in fines and legal action. Wait for written confirmation from L&I before you take on any new projects.
Do I have to retake the exam if my license has been inactive for three years?
No. The exam requirement only applies if your license has been inactive for five years or longer. If it has been inactive for fewer than five years, you can reinstate without retesting, as long as you pay the fee and resolve any outstanding violations.
What if I cannot find my original license number?
Contact L&I and provide your name, date of birth, and business name. They can look up your license number in their system and provide it to you. You will need this number to complete the reinstatement process.
Can I reinstate my license if I moved out of Washington?
Yes, you can reinstate your Washington license even if you no longer live in the state. However, you must update your address with L&I as part of the reinstatement process. If you plan to work in Washington again, your license will be valid; if you do not, reinstatement may not be necessary.