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Last updated October 23, 2026

NJ Contractor License Grandfather Clause: Who Qualifies Under the 5-Year Rule

Last checked: October 23, 2026

Independent education site. Not affiliated with the State of New Jersey, the NJ Division of Consumer Affairs, or the New Jersey State Board of Home Improvement and Home Elevation Contractors. Not legal advice.

If you've been in the trade a long time, you've probably heard you'll be "grandfathered" into New Jersey's new home improvement license. That's partly true. Here's what the law actually says, what you get to skip, and what you still have to do.

What is the grandfather clause in NJ's contractor license law?

It's a rule for long-time contractors in N.J.S.A. 45:5AAA-13. If you had been registered as a New Jersey home improvement contractor for at least five years as of January 8, 2024, you can skip the experience, education and exam requirements for the new license. You still have to apply, pay a fee and complete continuing education.

The clause is part of P.L.2023, c.237, the Home Improvement and Home Elevation Contractor Licensing Act (N.J.S.A. 45:5AAA-13(a)).

There's an important catch on timing. The grandfather clause sits in the group of sections (45:5AAA-9 through -13) that aren't in force yet. They start on the first day of the sixth month after the New Jersey State Board of Home Improvement and Home Elevation Contractors (the State Board) adopts its rules (N.J.S.A. 45:5AAA-5(b)). No one can apply for a grandfathered license today. See is a contractor license required in NJ?

Who qualifies for the 5-year rule?

The law covers anyone who, as of January 8, 2024, had been registered as a New Jersey home improvement or home elevation contractor for at least five years. Counting back, that means registered since about January 8, 2019. Exactly how the board will count those years hasn't been decided.

Why January 8, 2024? The law measures the five years "as of the effective date" of the Act. The Act was approved on January 8, 2024, and took effect immediately (P.L.2023, c.237, sec. 40). Registering now doesn't add years toward this rule. The cutoff date has already passed.

Some big questions are still open:

  • Business vs. person. Registration is held by the contractor business (N.J.S.A. 56:8-138). The license is for individuals. How an owner, partner or long-time employee proves five years isn't spelled out yet.
  • Gaps. The law doesn't say what happens if a registration lapsed for a while.
  • Proof. The board will decide what records it accepts.

The board's rules should answer these questions. Until they do, be wary of anyone who says they know for sure.

What does the grandfather clause let you skip?

It skips three of the license requirements in N.J.S.A. 45:5AAA-7: the age requirement, the apprenticeship, trade-school or two-years-of-experience requirement, and the board's education and exam. For most long-time contractors, skipping the education and the exam is the big win. That's what most people mean by "grandfathered."

Here's what new applicants will have to do and what grandfathered contractors skip (N.J.S.A. 45:5AAA-7, -13(a)):

Requirement (45:5AAA-7) New applicant 5-year grandfathered
(a) Be 18 or older Required Skipped
(b) Apprenticeship, trade school, or 2 years' experience Required Skipped
(c) Board education and exam Required Skipped
(d) Disclosure statement Required Still applies (our reading)
(e) Fees Required Still applies

More on what the exam may cover: the NJ license exam.

What do you still have to do?

You still have to apply on the board's form and pay the board's fee (N.J.S.A. 45:5AAA-13(a)). You also still need at least 6 hours of continuing education for each two-year license. The grandfather clause doesn't cover CE. And your business still has to register every year.

Breaking that down:

  • Apply and pay. The law says the board issues the license "upon submission... of an application" and "payment of a fee" (N.J.S.A. 45:5AAA-13(a)). The form and the fee amount haven't been set.
  • Disclosure statement. The clause lifts only parts a–c of 45:5AAA-7. Part d, the disclosure statement, isn't on that list. So by our reading it still applies.
  • Continuing education. The license renews biennially, meaning every two years (board page), unlike business registration, which renews every year. Each license renewal requires at least 6 hours, and all of it can be taken online (N.J.S.A. 45:5AAA-18, -19(b)). If you miss the deadline, the board can charge a processing fee of up to $200 (N.J.S.A. 45:5AAA-20). No CE course has been approved yet. See continuing education.
  • Business registration. It continues, with its insurance and bond rules (N.J.S.A. 56:8-138, 56:8-142). See registration vs. license.

When would a grandfathered license start?

The law says your grandfathered license takes effect when your current contractor registration expires (N.J.S.A. 45:5AAA-13(a)). But that section isn't in force yet. It waits for the board's rules plus six months, so no one can apply today. Our own estimate for licensing is late 2028 or later.

That date is our estimate, not the state's. Here's the basis: proposed rules around 2027, a public comment period, final adoption, then the six-month wait the statute requires (N.J.S.A. 45:5AAA-5(b)). Any delay pushes it later. As of October 2026, there were no proposed rules posted by the Division of Consumer Affairs. The State Board has met regularly in 2026; see its meetings page. See the license timeline.

Can a grandfathered contractor qualify as a "principal" contractor?

Yes, if you can show the right experience. A grandfathered contractor who has overseen jobs worth at least $120,000 that needed plans with more than one subcode qualifies as a principal contractor (N.J.S.A. 45:5AAA-13(b)). Businesses doing those bigger jobs will need a principal on staff once licensing starts.

That staffing rule is in N.J.S.A. 56:8-138(d). Like the license itself, it waits for the board's rules plus six months (N.J.S.A. 56:8-138(h)). The board hasn't said what proof of that experience it will accept.

What do we know, and what's not decided yet?

The basic rule is set by law: five years of registration as of January 8, 2024 lets you skip the experience, education and exam. What's not decided is how the board will count those years, what proof it wants, the form, the fee and the start date. Here's the status as of October 23, 2026.

What we know / What's not decided yet (as of October 23, 2026)

Item Status Source
5-year grandfather clause exists Law, not in force yet N.J.S.A. 45:5AAA-13(a), -5(b)
Five years measured as of Jan 8, 2024 Law (the Act took effect on approval) P.L.2023, c.237, sec. 40
Skips age, experience/apprenticeship, education and exam Law N.J.S.A. 45:5AAA-7(a)–(c), -13(a)
Must still apply and pay a fee Law N.J.S.A. 45:5AAA-13(a)
Not exempt from CE (6 hours per license renewal, all allowed online). The license renews every two years (biennial); business registration renews every year Law N.J.S.A. 45:5AAA-6(d), -18, -19(b)
License takes effect when your current registration expires Law N.J.S.A. 45:5AAA-13(a)
How individuals prove years when the registration is in a business's name Not decided Board rules (none posted)
Whether lapses or gaps count Not decided Board rules (none posted)
Application form, fee amount, deadline Not decided N.J.S.A. 45:5AAA-6(g)
The State Board has met regularly in 2026: Jan 28, Feb 25, Apr 22, May 27, Jun 24 and Jul 22 (Mar 25 canceled). Agendas are posted for Aug 26 and Sep 23 Posted on the board's meetings page. Minutes posted for May 27 and Jul 22 Board meetings page
Proposed rules No proposed rules posted by the Division as of October 2026 DCA rule proposals; DCA proposals page
Licensing start date Not decided. Our estimate: late 2028 or later N.J.S.A. 45:5AAA-5(b)

What should you do now?

Keep your registration active, and gather proof of your history while it's still easy to find. That means old registration certificates, renewal records and your registration number. Check what the state's lookup site shows for your business. When the board proposes rules, read what proof it asks for.

  • Look up your registration on the state's license verification site.
  • Not sure what your number is? See what a NJ HIC number is.
  • Renewing soon? See HIC registration renewal 2027.
  • Small jobs only? The handyman exemption works differently.
  • Running a crew? See for employers.
  • New to all this? Start with our main guide.

This page is general information, not legal advice. For your own situation, confirm with the NJ Division of Consumer Affairs or an attorney.

Frequently asked questions

Does NJ have a grandfather clause for the new contractor license?

Yes. Under N.J.S.A. 45:5AAA-13(a), anyone registered as a NJ home improvement contractor for at least five years as of January 8, 2024 can skip the experience, education and exam requirements. The clause isn't in force until licensing starts.

If I'm grandfathered, do I still need to take the exam?

No. The clause skips the board's education and exam (N.J.S.A. 45:5AAA-7(c)). You still have to apply and pay the board's fee.

Do grandfathered contractors have to do continuing education?

Yes. The clause doesn't cover CE. Every licensee needs at least 6 hours per two-year license, and all of it can be taken online (N.J.S.A. 45:5AAA-18, -19(b)).

I registered in 2020. Am I grandfathered?

Not under the 5-year rule, based on the statute. You needed five years of registration as of January 8, 2024, so about January 2019 or earlier. You'd go through the regular license requirements in N.J.S.A. 45:5AAA-7 once the board sets them.

My registration is in my company's name. Do I qualify?

That isn't decided yet. Registration is held by businesses, but the license is for individuals. The board's rules should explain how individuals show their five years.

Get a heads-up when the rules come out

The board's rules will decide how the 5-year rule works in practice. If you'd like an email when proposed rules are published, join the free waitlist on our main page. No spam, and you can unsubscribe anytime.

Sources

Last checked: October 23, 2026.

NJ Home Improvement License is an independent, privately run education website. It is not affiliated with, endorsed by, or approved by the State of New Jersey, the NJ Division of Consumer Affairs, or the New Jersey State Board of Home Improvement and Home Elevation Contractors. This page is not legal advice; confirm with the Division of Consumer Affairs or an attorney. Any future dates on this page are our estimates, not official dates.

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