I have an employee that is thinking about selling his master license to help another electrician who can't pass the test start an electrical contracting business. The employee still wants to work for me and be the license holder for another company. Is it just me or is this a conflict of interest? I have my own license since 1987 and don't need a master electrician working for me to operate. This employee is a good employee and dependable, but I'm a little concerned. Any thoughts. TX state law states he has to own at least 50% or more of the other business or be an employee of the other business.
most states, it isn't that hard to get a license of your own, i'm guessing....
so, he's accepting the liability of someone who can't pass a pretty straightforward test.
if the guy goes belly up, your employee may be on the hook for whatever the guy did
to go belly up, and the chances are more likely he will do that than thrive.
seems it isn't known WHY the other guy can't pass the test.... i could probably teach
a blind dog with a note in it's mouth to pass the C-10 test... but you can't hold a C-10
if you have some legal issues like.....
868. Criteria to Aid in Determining if Crimes or Acts Are
Substantially Related to Contracting Business
For the purposes of denial, suspension, or revocation of a license
pursuant to Division 1.5 (commencing with Section 475) of the code, a
crime or act, as defined in Section 480 of the code, shall be considered
to be substantially related to the qualifications, functions, or duties of
a licensee (under Division 3, Chapter 9 of the code) if it evidences
present or potential unfitness of an applicant or licensee to perform
the functions authorized by the license in a manner consistent with
the public health, safety, and welfare. The crimes or acts shall
include, but not be limited to, the following:
(a) Any violation of the provisions of Chapter 9 of Division 3 of the
code.
(b) Failure to comply with the provisions of the California
Administrative Code, Chapter 8, Title 16.
(c) Crimes or acts involving dishonesty, fraud, deceit, or theft with the
intent to substantially benefit oneself or another or to substantially
harm another.
(d) Crimes or acts involving physical violence against persons.
(e) Crimes or acts that indicate a substantial or repeated disregard
for the health, safety, or welfare of the public.
so why is it that this guy can't get a license again?
we all know how many small contractors die a sudden death.... so your good employee
may be a bit distracted if this blows up.
on the other hand, with his license tied up with this other fellow, he's not likely to be
going into competition with you directly....
if your employee wasn't on the up and up,
he'd not even be telling you about this.....
i only see a conflict if the other guy is doing your type of work.