When the DLI is Focusing on You
Despite our best efforts to run our business efficiently and profitably while complying with the laws and rules governing the electrical industry, it is possible to end up under scrutiny of the DLI. Within this issue, you will find an article spotlighting the most frequent licensing violations but here I wanted to speak a bit about how to respond to investigative inquiries.
DLI’s Construction Codes and Licensing Division (CCLD) has an Enforcement Services Unit that investigates complaints regarding all of the construction trades that DLI regulates including electricians, plumbers, residential builders and remodelers, boiler engineers, building officials, and others. The Department has the authority to suspend or revoke licenses, impose civil penalties (fines), and order unlicensed contractors to cease and desist from further unlicensed activity.
Most of the case files that CCLD opens regarding electricians are based on information provided by state and local electrical inspectors very few stem from complaints. Generally, the first step the CCLD investigator will take in an investigation is to send a letter to the contractor explaining the nature of the allegations that have been made and asking the contractor to provide a written response to the allegations. If you receive one of these letters, the worst thing you can do is ignore it, as failure to respond to a request for information from CCLD is a violation all by itself. CCLD requests have the same power as a subpoena. Read the letter carefully to understand the issue and prepare a written response.
Make sure that your response is complete, accurate, and truthful. Providing false, incomplete, or misleading information in an investigation is also a violation that can result in enforcement action and fines. Depending on the situation, you may want to call the investigator for clarity, consult an attorney or call MEA’s compliance expert on staff that can assist with the document preparation process and regulation interpretation.
If CCLD’s investigation determines that violations did occur and that enforcement action is warranted, there are two ways in which a case can be resolved: Consent Order or litigation. Most violations are settled by Consent Orders. A Consent Order is basically a settlement agreement between CCLD and the contractor. The terms of a Consent Order are usually negotiated between the contractor and the investigator. You may want to consult with an attorney if you are concerned about Responsible Contractor Act implications.
CCLD’s Enforcement Unit has a dozen investigators who all report to a supervisor, Steve Best - a licensed attorney and Air Force veteran. Investigators are not required to meet quotas for enforcement actions, and the money that CCLD assesses in penalties goes into a dedicated account that funds safety training and equipment for employers, so CCLD has no financial incentive to issue fines for its own benefit. The Department generally prefers to resolve enforcement cases through negotiation rather than litigation, so a contractor should never feel that they can’t approach the investigator to speak openly and honestly about the resolution of an investigation. Contractors who feel they are not being treated fairly during the investigation process are asked to contact Mr. Best.
Remember, MEA has a compliance expert on staff. Please reach out if you need any assistance navigating through this process and what it means for your business, they are here to help! You can also read more on this article online at www.electricalassociation.com.