California Private Investigators: Mandatory New Contracts Coming July 1, 2025
So here we are. The California Association of Licensed Investigators (CALI) apparently decided it was better to sit on the sidelines than get involved when it actually mattered. Shocking, right? Starting July 1, 2025, a new law goes into effect mandating that all California private investigators must have a signed contract before beginning any assignment. If you’re just hearing about this now, don’t feel bad — most of us are.
Here’s the Cliff’s Notes version of what went down: Somewhere between three to five years ago, the Bureau of Security and Investigative Services (BSIS) invited CALI to work with them to develop mandatory contract guidelines for private investigators. Francie, at the Palm Springs convention, delivered went on about how shocked and surprised they were yet 1 minute later she stated that CALI “didn’t want to bet against ourselves.” So CALI did know and chose not to show up to the party. Thats Fantastic! Thier refusal to engage has now left every California PI scrambling to adapt to a law that was crafted without our meaningful input. Congratulations.
New Requirements for California Private Investigators
Starting July 1, 2025, California private investigators must have a signed agreement in place before beginning any new client assignment. And these aren’t casual handshake deals or “we’ll email you later” agreements. No, these contracts must clearly spell out:
Both parties must sign the contract before any work begins — no wiggle room, no “we’ll work it out later,” no “trust me, bro.” Furthermore, investigators must retain these signed contracts for a minimum of two years and, yes, BSIS will have the authority to audit compliance.
Unintended Consequences (Or Are They?)
Look, I get it. BSIS is trying to crack down on under-the-table cash deals and increase oversight. The spirit of the law makes sense — in theory. In practice? It’s going to be an unmitigated disaster for legitimate PIs who work with law firms, government contracts, and mega corporations. Spoiler alert: these clients are not going to start signing contracts with small private investigation firms.
Already, I’m feeling the pinch. I’m signed up to perform investigative work for the County of Los Angeles on criminal cases. So tell me, who exactly is supposed to sign my new required contract? The defense attorney? The accused? The county? (Spoiler: None of them are thrilled at the prospect.) Sure, the “easiest” answer would be the attorney, but what happens when they flat-out refuse?
My prediction – Brace yourself:
Insurance firms and big law offices will outsource to out-of-state investigative companies.
Those companies will then subcontract the actual work back to California-based PIs.
Oh, the irony.
A Ray of Hope: FYI’s Solution
Thankfully, all is not lost. FYI’s is working closely with David Queen, Esq. (“The PI’s Attorney”) to craft contract templates and service manuals specifically designed to meet the new legal requirements. We’ll be offering:
All tailored specifically for California private investigators who still want to operate legally without losing their minds.
Stay tuned. Prepare yourselves. And maybe next time, we won’t let the people who are supposed to “represent us” ghost the negotiations.
