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license questions 

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Ken,

    It is common knowledge in our industry that before you hire an employee, they must be finger printed and registered with NYS (for us NY’rs) to do security work for our company.  My company is licensed to do security work and line voltage electric.  I hold both licenses.

    Questions

  •     Can I have electricians on board to do the electrical work without them having to get fingerprinted?
  •     Can I hire subcontractors to do electrical work, and or pull wire for audio, telephone etc as long as it is not related to the alarm in any shape or form.
  •     Can I own a second company that just handles the electric work under the same physical roof (office and shop) and not have the employees fall under the guides of the fingerprinting regulations?

Stephen

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Answer

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    I am in the process of updating license requirements in all states.  Project should be complete in week or so.  The state and [most] local license, registration, certification requirements will be posted on our website at https://www.kirschenbaumesq.com/page/alarm-law-issues

    If you have licensing questions or issues our Licensing Department may be able to assist.  Contact Jennifer Kirschenbaum, Esq at 516 747 6700 x 302 or Jennifer@KirschenbaumEsq.com.

    Your questions, while specific to New York licensing, raises issues that are germane to other state licensing, particularly regarding rationale for the laws and regulations.

    As a licensed NY alarm company you must "document" your employees, even those that might hold their own alarm license or licensed electricians.  Why?  Because the Dept of State, Division of Licensing Services needs to know whom you employ so that if one of your employees is convicted of a felony or otherwise becomes ineligible for employment by a licensed alarm company, the state will know to notify you. Documentation in New York requires an informational questionnaire and fingerprints for a state check, but not FBI.  Of course other states have different procedures, but the rationale is the same.

    You can hire subcontractors, but they better be subcontractors.  And, in my opinion the subcontractors you hire need to be licensed and you should ensure that your subcontractor has properly documented its employees.  Ultimately you are the one who contracted with the subscriber and you're responsible for the installation and particularly making sure you have not introduced someone who shouldn't be working at your sub's premises.  Also, be careful engaging subcontractors who are really your employees but not carried on your books and treated as 1099 subcontractors.

    In New York you can qualify for and operate more than one licensed alarm company.  That rule may apply elsewhere.  However, you should not "kid" yourself about operating multiple businesses.  If you intermingle your operations then you may as well be running one operations.  Think of it this way.  Consider each of your operations run by two different owners, owners that don't like or trust each other and compete against each other.  It would be strange that they share the same space; stranger still that they share the same employees, phone numbers, web sites, accountants, bank, file cabinets, transfer money back and forth between them.  Two real competitors wouldn't conduct their businesses this way and if you operate two or more businesses you have to be careful to separate them.  

    Operating multiple businesses can be motivated by a number of issues.  Could be tax considerations, one company qualifying for work that the other doesn't, union v non union,  but more often than not the motivation is to separate the companies from the liability each is exposed to.  To accomplish that you need to be vigilant maintaining their separate identities and operations.

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Webinars

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December 4, 2013   12 noon EST  Register here: https://attendee.gotowebinar.com/register/4919260455763006721

     Title:  10 Things Residential Security Alarm Companies should consider BEFORE entering the world of Commercial Engineered System Fire Alarms

      Presented by:  Bob Williams, President of Briscoe Protective Systems and his Management Team. 

Briscoe Protective Systems has been in the industry for 35 Years and has made the transition from a Residential Alarm Company in the late 70’s to a Engineered System Fire and Security Company that is an SDM Top 100 Company. Find us on the web at www.BriscoeProtective.com or on LinkedIn under Companies, Facebook and Twitter@BriscoeProSys 

      Description:  There is a big difference between installing Residential Fire Systems and Commercial Engineered Fire Systems and there are “Key Factors” that Security Company’s should consider before attempting to go into this lucrative but challenging market.

      Who should attend:  Alarm company owners and fire techs.  

 

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