Washington contractor registration denied or suspended: why, and what to do

Short answer: L&I must deny or suspend a Washington contractor registration for reasons listed in RCW 18.27.030, including an unsatisfied final judgment, no valid UBI number, a falsified application, or no active Department of Revenue registration. A canceled bond or insurance suspends you automatically. Fix the cause, then reinstate for $70.90.

Updated October 12, 2026. Requirements and fees change; confirm with the agency named on this page.

A denial or suspension letter from L&I stops your business cold, because working, bidding or advertising without an active registration is a crime in Washington. Most denials and suspensions trace back to a short list of causes written into state law. This guide walks through each one and what L&I says you need to do to get back to work.

Why does L&I deny a contractor registration?

Because the law requires it in specific situations. RCW 18.27.030 says "The department shall deny an application for registration if:" and then lists the grounds. In plain English, the main ones are:

• An unpaid construction judgment. L&I must deny when "the department has notice that the applicant has an unsatisfied final judgment against him or her" for work covered by the contractor law. The rule reaches owners, principals and officers of a business that owes the judgment, and successor businesses too.
• No UBI number. Denial applies when "the applicant does not have a valid unified business identifier number."
• A false application. Denial applies when "the department determines that the applicant has falsified information on the application," unless the error was inadvertent.
• No tax registration. Denial applies when "the applicant does not have an active and valid certificate of registration with the department of revenue."
• Age. Denial applies when "the applicant is under 18 years old at the time of application."

Can an old business debt block a new registration?

Yes, and this surprises people the most. The judgment rule follows the people, not only the company. If you were an owner, principal or officer of a contractor that left an unsatisfied final judgment behind, a new business you start can be denied. A new company that takes over an old one's work is presumed to know about the old judgments, and the law lets it rebut that only with proof of due diligence. There is one narrow exception: "The department shall not deny an application or suspend a registration because of an unsatisfied final judgment" when the director finds the judgment came from another party's fraud or negligence. If any of this applies to you, talk to a Washington attorney before you reapply.

Why would an active registration get suspended?

The same grounds that block a new application can suspend an existing one. RCW 18.27.030 says "the department shall suspend an active registration if" you pick up an unsatisfied final judgment, lose your UBI number or Department of Revenue registration, or the application turns out to be falsified.

The most common cause is simpler: a lapsed bond or insurance policy. Under RCW 18.27.060, "the contractor's registration shall be automatically suspended on the effective date of the impairment or cancellation." The bond statute says the same: "A cancellation or revocation of the bond or withdrawal of the surety from the bond automatically suspends" the registration. A missed premium payment can do it. L&I sums it up: "We suspend a registration when the registration requirements are not met," "such as a bond or insurance cancelling or expiring or an unsatisfied judgment."

How will you find out you were suspended?

By tracked notice. The statute says "The department shall notify the contractor of the suspension within two days after suspension," and L&I's page says "When we suspend a registration, we will notify you by certified mail within 2 days of the suspension." Do not wait for the letter: check your status any time in L&I's Verify tool, the same one customers use. See our guide to looking up a Washington contractor.

Can you keep working while suspended?

No. RCW 18.27.020 makes it a gross misdemeanor to "Advertise, offer to do work, submit a bid, or perform any work as a contractor without being registered," and "A person is guilty of a separate gross misdemeanor for each day worked." Stop bidding and stop work until the registration is active again.

How do you reinstate a suspended registration?

Fix the cause, prove it, and pay the fee. L&I says "The letter will tell you what you need to do to reinstate your registration." The steps include: "Provide proof that you corrected the issue, such as a new bond or insurance certificate or satisfaction of judgment." and "Pay the reinstatement fee of $70.90." "You may reinstate your registration online or in person." The fee rule lists "$70.90 for the reinstatement of a certificate of registration."

If your registration simply expired, that is a renewal problem rather than a suspension. Our Washington contractor renewal guide covers it, and the contractor bond guide explains how to keep a bond from lapsing.

How do you avoid a denial in the first place?

1. Get your UBI number and an active Department of Revenue registration before you apply.
2. Check whether you, or any business you owned or ran, has an unpaid construction judgment.
3. Answer every question on the application completely and truthfully.
4. Keep the bond and insurance paid, and keep your mailing address current with L&I.

The step-by-step order is in how to get a contractor license in Washington.

This guide is general education, not legal advice. Rules and fees change, so confirm the current requirement with L&I, and get legal advice on any judgment issue, before you act.

Common questions

Sources

Official pages checked on 2026-10-12.

• app.leg.wa.gov/RCW/default.aspx?cite=18.27.030
• app.leg.wa.gov/RCW/default.aspx?cite=18.27.060
• app.leg.wa.gov/RCW/default.aspx?cite=18.27.040
• app.leg.wa.gov/RCW/default.aspx?cite=18.27.020
• lni.wa.gov/licensing-permits/contractors/register-as-a-contractor/
• app.leg.wa.gov/WAC/default.aspx?cite=296-200A-900