KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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More comment on Can subcontractor work for unlicensed alarm co
May 2, 2024
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More comment on Can subcontractor work for unlicensed alarm co from article on April 20, 2024
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Ken,
          Another issue in Florida along this same line is that there are licensed companies that are employing 1099 individuals to work for them. The individuals are required to be an LLC or Corporation with their own insurance, etc. It is my understanding that this is illegal per the Florida Statutes. An individual must be an employee of the company he works for or be state licensed themselves in order to be contracted for work.
          Your thought or anyone else's input.
Isaac Hayden
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Response
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          You are correct that a licensed alarm company cannot avoid licensing law by engaging unlicensed subcontractors, whether they are corporate or LLC entities or an individual doing business under an assumed name or trade name. 
          It’s perfectly fine to engage a subcontractor that is licensed.  The licensed subcontractor should not accept engagement by an unlicensed alarm company [just as a licensed alarm company should not engage an unlicensed subcontractor]. 
          I also remind you that calling an apple an orange doesn’t make it so.  Calling someone a subcontractor just because you pay them off your payroll doesn’t make them a subcontractor.  It makes them an employee that you are paying off your books and who is registered to your company by the licensing board [if that’s required in your state]. 
          This is definitely one of those things that don’t matter until it does.  In other words, you can do anything you want as long as you don’t get caught.  Be sure you understand the consequences and you’re ready to deal with them; otherwise follow the straight and narrow; you’ll sleep better.
          By the way, if your company needs a license holder K&K can show you how to do it lawfully by providing the Qualifier Agreement that will specify the relationship and duties of the license holder and company.  This should not be viewed as an effort to circumvent licensing requirements but actually complying with them.  Contact K&K’s License Coordinator Eileen Wagda at 516 747 6700 x 312 or EWadga@Kirschenbaumesq.com for guidance.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com