Claims Retrospective: It Is Important to Be Aware of Local Licensing Rules, Regulations, and Requirements in order To Avoid Licensing Complaints and Investigations and the Resulting Consequences.
We have noticed an increase in licensing complaints across the country, many of which can be said to involve alleged technical violations with no morally culpable behavior or any injured party. Some examples of these technical violations include: (1) failure to renew the engineering firm’s registration in a timely manner; (2) failure of the design professional to include their license number on written contracts (in jurisdictions where such is required); and (3) failure to provide the correct termination notice to clients.
These failures are typically the result of clerical errors or even sometimes general ignorance of technical requirements. However, we have seen licensing boards seek to impose the following punitive measures in connection with these types of technical violations: (a) fines of $1,000 or more; (b) private or public reprimand; (c) probation; and (d) even suspension.
Apart from these punitive measures, investigations by licensing boards of even these types of seemingly trivial matters can lead to further investigations of the engineer’s work and projects. It is not uncommon for a licensing board investigation to start out involving one issue, only to later expand into an investigation of several other issues. Often, the more serious issues are not the ones that the licensing board initially set out to investigate. Nevertheless, the engineer is subject to sanction and reprimand for the more serious issues that would not have been discovered if not for the mere technical violations.
As licensing boards have the ability to seriously hinder and, in extreme cases, even end an engineer’s livelihood, it is best to limit one’s exposure to licensing investigations. In that regard, engineers should be familiar with their board’s requirements, no matter how trivial, so they can ensure compliance. Efforts should be made to refresh the engineer’s knowledge of local rules, regulations, and requirements annually (or at least every couple of years). Engineers can also set reminders for renewal/registration dates to lower the chances of these regulations going unnoticed.
Of course, if an engineer finds himself/herself the subject of a licensing board complaint or investigation, they should report to their insurance carrier as the carrier may be able to assist in dealing with the issue at no cost to the insured engineer.
