Examining Professional Licensure Risks.

• Author: Carnahan, Brian
• Position: FOREFRONT

More than 30% of workers in the United States are required to have a government-issued license to practice their profession. These professionals range from accountants to hair stylists to social workers. In fact, few sectors of the economy are untouched by occupational licensure. While the public may benefit from these mandated professional standards, individuals and businesses employing such professionals are exposed to a number of risks related to licensure.

Occupational licensure exists ostensibly to protect the public from persons unqualified to practice a profession. This can be accomplished through practice protection, in which the law allows only licensed persons to perform certain work, or via title protection, where only certain persons may call themselves a practitioner of a profession. No matter the means of facilitating this public protection, occupational licensing ensures the professional in question follows a code of ethics, earns continuing education, and renews the license on a regular basis.

It is important to note that a license is different than a credential. A license is issued by a government agency and is required in order to practice certain professions. A credential is issued by a non-governmental body and is not legally mandated.

Given the prevalence of...