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REGISTERING EMPLOYEES IN MARYLAND AND OTHER STATES
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Ken,
My question is about options for hiring a new employee while waiting for the Maryland Security licensing approval. I know Maryland is an at will state but I don’t want to have to pay unemployment if they don’t qualify and I have to terminate them.
If I hire a sales person or technician who does not already have a security license in the State of Maryland, they cannot start working until the state says their application has been approved to work. It takes about 10 days to learn if they are approved to begin work but the entire process can take up to 90 days.
Are there any options other than:
- Doing an offer letter contingent upon being approved
- they wait to start work for 10 days
- Hire them if they are approved
- No longer proceed with hiring if they are declined and since they never started work you don’t have to pay unemployment
Granted they should know if they are going to be approved but I cannot image a lot of prospective employees will want to wait the 10 days before they can start getting paid.
Hire the person and pay them to shadow another employee-but not do any work- until they are approved. Obviously I’m ahead if they are approved because when they start working independently they’ll already have some training. If they are denied, I’d have to fire them-is this just cause and you don’t have to pay unemployment if they file?
Or is there an agreement that could be signed prior to their start date that you could give to unemployment which would disqualify them for receiving unemployment because they were fired for not qualifying for the license (at the 10 day approval or 90 day finalization)
anon
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RESPONSE
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You are raising a lot of issues that do not necessarily consider each other. Let's deal with the issue of employing a person who needs to be "licensed". Many states that require alarm licensing also require that certain employees be "licensed" or "Registered" or "certified" or "Documented". In some states you can hire the person, then file with the state and you can continue to employ the person until you are notified that the person is disqualified [perhaps a felony conviction] and you have to fire them or at least not permit them to perform any services that require a license. The licensing agency isn't concerned with your unemployment problems or expenses.
Maryland appears to require a company to be licensed as a "Security Systems Agency" which is defined as and applies to:
"A security systems agency is an individual or firm licensed to conduct a business that provides security systems services. Security systems services include providing on a person's residence or commercial property the service of three things:
- surveying the property for purposes of installing a security system,
- physically installing, maintaining, or repairing a security system, or
- responding to a distress call or an alarm sounding from a security system."
Some employees will require a license if they are Security Systems Technicians, which is defined as
"Generally, a security system technician is a person who is registered to personally provide security systems services. Security systems services include providing on a person's residence or commercial property the service of three things:
- surveying the property for purposes of installing a security system,
- physically installing, maintaining, or repairing a security system, or
- responding to a distress call or an alarm sounding from a security system."
As you can see the criteria for a license is the same for the company and the employee actually performing the licensed service.
In Maryland you new hire can't perform the licensed activities until that person gets licensed. That could take 3 or more months.
There appears to be another statute that has to be complied with in Maryland.
Maryland labor statute requires employers to reporting new employees within 20 days of hire if the report is submitted by mail. See Md. Code Ann., Lab. & Empl. § 8-626.1(b)( requiring that within 20 days of an employee's beginning employment, the employee's employing unit shall submit report to the Secretary).
If the employer chooses to transmit data magnetically or electronically at a rate of twice per month, then the report must be submitted not less than 12 days or more than 16 days apart. Md. Code Ann., Lab. & Empl. § 8-626.1(C)(2).
There doesn't seem to be any response from the state to this filing.
Unemployment benefits is another matter. Generally, a person doesn't qualify for unemployment benefits until that person has worked a certain period of time. Once that time has been met the person qualifies, but if that person has worked for you only a few weeks or months the prior employers with whom the person worked will be required to pay their prorate share of the unemployment benefits [covered by insurance - but it's the premiums you are concerned with]. So if you have someone working a short time they may not be entitled to unemployment and even if they are a prior employer may have to take care of most of the benefits.
Of course firing an employee for cause will result in no unemployment benefits. Lying on an employment application would be for cause; failing to obtain the license would be for cause; being written up 3 or more times for work issues would be for cause.
I know that most of you are not in Maryland, but the issues discussed most likely apply in your state, with different definitions and procedures.
Now I have a question for you. Does "responding to a distress call or an alarm sounding from a security system" mean a central station operator or a responding guard? If central station operator does that mean that the central station would need to be licensed as a "security systems agency" and all operators licensed as "security system technicians"?
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