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Licensure means a restricted practice or a restriction on the use of an occupational title, requiring a
license A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...
. A license created under a "practice act" requires a license before performing a certain activity, such as driving a car on public roads. A license created under a "title act" restricts the use of a given occupational title to licensees, but anyone can perform the activity itself under a less restricted title. For example, in Oregon, anyone can practice counseling, but only licensees can call themselves "Licensed Professional Counselors." Thus depending on the type of law, practicing without a license may carry civil or criminal penalties or may be perfectly legal. For some occupations and professions, licensing is often granted through a professional body or a licensing board composed of practitioners who oversee the applications for licenses. This often involves accredited training and examinations, but varies a great deal for different activities and in different countries. Occupational licensing has the strongest public support for activities whose incompetent execution would be a health or safety threat to the public, such as practicing medicine. Licensing of low-risk businesses like
florist Floristry is the production, commerce, and trade in flowers. It encompasses flower care and handling, floral design and arrangement, merchandising, production, display and flower delivery. Wholesale florists sell bulk flowers and related su ...
s and hair braiding salons is more controversial because licensing is inherently a form of
restraint of trade Restraints of trade is a common law doctrine relating to the enforceability of contractual restrictions on freedom to conduct business. It is a precursor of modern competition law. In an old leading case of ''Mitchel v Reynolds'' (1711) Lord Sm ...
. It creates a barrier to entry preventing some people from practicing the profession, benefiting existing licensees by reducing competition. This can harm consumers by raising prices and reducing innovation by new market entrants, and may slow overall economic growth.On Point: You Need A License For That
/ref>
Competition law Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
can conflict with licensing practices if the licensing body favors its own licensees in ways that do not clearly protect the public. Alternatives to individual licensure include requiring that at least one person on a premises be licensed and oversee unlicensed practitioners, permitting of the business overall, random health and safety inspections, general
consumer protection Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...
laws, and
deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...
in favor of voluntary private certifications or
free market In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
mechanisms such as customer review sites.


Types

In the United States and Canada, licensing (the term registration is sometimes used) is usually required by law to work in a particular
profession A profession is a field of work that has been successfully '' professionalized''. It can be defined as a disciplined group of individuals, '' professionals'', who adhere to ethical standards and who hold themselves out as, and are accepted b ...
or to obtain a privilege such as to drive a car or truck. Many other privileges and professions require a license, generally from the
state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * ''Our S ...
or provincial government, in order to ensure that the public will not be harmed by the incompetence of the practitioners, and to limit supply to incumbent practitioners and thus increase wages. Examples of professions that require licensure in some jurisdictions include:
actuary An actuary is a business professional who deals with the measurement and management of risk and uncertainty. The name of the corresponding field is actuarial science. These risks can affect both sides of the balance sheet and require asset man ...
,
architect An architect is a person who plans, designs and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
,
certified public accountant Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. It is generally equivalent to the title of chartered accountant in other English-speaking countries. In the United Sta ...
,
electrician An electrician is a tradesperson specializing in electrical wiring of buildings, transmission lines, stationary machines, and related equipment. Electricians may be employed in the installation of new electrical components or the maintenance ...
,
engineering Engineering is the use of scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad range of more speciali ...
,
general contractor A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of ...
s,
financial analyst A financial analyst is a professional, undertaking financial analysis for external or internal clients as a core feature of the job. The role may specifically be titled securities analyst, research analyst, equity analyst, investment analyst, ...
,
geologist A geologist is a scientist who studies the solid, liquid, and gaseous matter that constitutes Earth and other terrestrial planets, as well as the processes that shape them. Geologists usually study geology, earth science, or geophysics, althou ...
s,
hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as ...
manager,
insurance agent Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
,
interior design Interior design is the art and science of enhancing the interior of a building to achieve a healthier and more aesthetically pleasing environment for the people using the space. An interior designer is someone who plans, researches, coordin ...
, investment banker, licensed professional counselor,
nurse Nursing is a profession within the health care sector focused on the care of individuals, families, and communities so they may attain, maintain, or recover optimal health and quality of life. Nurses may be differentiated from other health ...
, physical therapist, plumber,
private investigator A private investigator (often abbreviated to PI and informally called a private eye), a private detective, or inquiry agent is a person who can be hired by individuals or groups to undertake investigatory law services. Private investigators of ...
,
psychologist A psychologist is a professional who practices psychology and studies mental states, perceptual Perception () is the organization, identification, and interpretation of sensory information in order to represent and understand the pre ...
,
landscape architect A landscape architect is a person who is educated in the field of landscape architecture. The practice of landscape architecture includes: site analysis, site inventory, site planning, land planning, planting design, grading, storm water manage ...
,
lawyer A lawyer is a person who practices law. The role of a lawyer varies greatly across different legal jurisdictions. A lawyer can be classified as an advocate, attorney, barrister, canon lawyer, civil law notary, counsel, counselor, solicit ...
, nutritionist,
physician A physician (American English), medical practitioner (Commonwealth English), medical doctor, or simply doctor, is a health professional who practices medicine, which is concerned with promoting, maintaining or restoring health through th ...
,
real estate broker A real estate agent or real estate broker is a person who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients. Brokers and ag ...
, speech-language pathologist, school counselor,
social worker Social work is an academic discipline and practice-based profession concerned with meeting the basic needs of individuals, families, groups, communities, and society as a whole to enhance their individual and collective well-being. Social wo ...
,
stockbroker A stockbroker is a regulated broker, broker-dealer, or registered investment adviser (in the United States) who may provide financial advisory and investment management services and execute transactions such as the purchase or sale of stock ...
,
surveyor Surveying or land surveying is the technique, profession, art, and science of determining the terrestrial two-dimensional or three-dimensional positions of points and the distances and angles between them. A land surveying professional is ...
, and
teacher A teacher, also called a schoolteacher or formally an educator, is a person who helps students to acquire knowledge, competence, or virtue, via the practice of teaching. ''Informally'' the role of teacher may be taken on by anyone (e.g. whe ...
. Licensure is similar to
professional certification Professional certification, trade certification, or professional designation, often called simply ''certification'' or ''qualification'', is a designation earned by a person to assure qualification to perform a job or task. Not all certifications ...
, and sometimes synonymous (such as in the case with teacher licensure/certification); however, certification is an employment qualification and not a legal requirement for practicing a profession. In many cases, an individual must complete certain steps, such as training, acquiring an
academic degree An academic degree is a qualification awarded to students upon successful completion of a course of study in higher education, usually at a college or university. These institutions commonly offer degrees at various levels, usually including und ...
in a particular area of study, and/or passing an exam, before becoming eligible to receive their license. There are various resources available to assist professionals with the completion of these steps. Professional associations are often a tremendous resource to individuals looking to obtain a special level of certification or licensure. Upon the successful attainment of a license, individuals append an acronym to their name, such as CPA (
Certified Public Accountant Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. It is generally equivalent to the title of chartered accountant in other English-speaking countries. In the United Sta ...
) or LPD and PI ( Private Detective and Investigator) PE ( Professional Engineer). In the United Kingdom, licensing as a form of professional regulation predominated in the centuries before 1900. It has largely given way to memberships of professional bodies. This usually involves registration with a professional body and the granting of grades of "associateship," "membership" or "fellowship" of such a body. Gaining membership of such bodies is usually restricted solely to those who pass additional examinations after university graduation. United Kingdom examples of professional bodies include: MRINA (internationally qualified to practice member of the Royal Institute of Naval Architects), MRIBA
Royal Institute of British Architects The Royal Institute of British Architects (RIBA) is a professional body for architects primarily in the United Kingdom, but also internationally, founded for the advancement of architecture under its royal charter granted in 1837, three supp ...
), MIMechE (Member of the
Institution of Mechanical Engineers The Institution of Mechanical Engineers (IMechE) is an independent professional association and learned society headquartered in London, United Kingdom, that represents mechanical engineers and the engineering profession. With over 120,000 member ...
), MICE (Member of the
Institution of Civil Engineers The Institution of Civil Engineers (ICE) is an independent professional association for civil engineers and a charitable body in the United Kingdom. Based in London, ICE has over 92,000 members, of whom three-quarters are located in the UK, whi ...
), LRCP (licentiate of the
Royal College of Physicians The Royal College of Physicians (RCP) is a British professional membership body dedicated to improving the practice of medicine, chiefly through the accreditation of physicians by examination. Founded by royal charter from King Henry VIII in 1 ...
), MRCP (member of the
Royal College of Physicians The Royal College of Physicians (RCP) is a British professional membership body dedicated to improving the practice of medicine, chiefly through the accreditation of physicians by examination. Founded by royal charter from King Henry VIII in 1 ...
), MIET (Member of the
Institution of Engineering and Technology The Institution of Engineering and Technology (IET) is a multidisciplinary professional engineering institution. The IET was formed in 2006 from two separate institutions: the Institution of Electrical Engineers (IEE), dating back to 1871, and ...
).


License renewal

In places, licensure may still be a lifelong privilege, but increasingly nowadays, it requires periodic review by peers and renewal. It is very common for license renewal to depend, at least in part, on
academia An academy (Attic Greek: Ἀκαδήμεια; Koine Greek Ἀκαδημία) is an institution of secondary education, secondary or tertiary education, tertiary higher education, higher learning (and generally also research or honorary membershi ...
. In the United Kingdom such regular upgrading of skills is often termed continuous
professional development Professional development is learning to earn or maintain professional credentials such as academic degrees to formal coursework, attending conferences, and informal learning opportunities situated in practice. It has been described as intensive ...
, or CPD. In many professions this is fast becoming a standard, mandatory and annual requirement. For example, in the US, educators are subject to state re-certification requirements in order to continue teaching. The
No Child Left Behind Act The No Child Left Behind Act of 2001 (NCLB) was a U.S. Act of Congress that reauthorized the Elementary and Secondary Education Act; it included Title I provisions applying to disadvantaged students. It supported standards-based educati ...
of 2001, enacted to improve performance in US schools, has led to an intensification of license requirements for both beginning and experienced educators. In the case of UK medical practitioners, the government has recently proposed that they should all be legally required to produce formal proof, every five years, that they are upgrading their standard of practise. This tightening of the UK medical licensing system has largely been a response to public and government unease about a series of recent and well-publicised cases of alleged medical incompetence, including the Harold Shipman case, the
Alder Hey organs scandal The Alder Hey organs scandal involved the unauthorised removal, retention, and disposal of human tissue, including children’s organs, during the period 1986 to 1996. During this period organs were retained in more than 2,000 pots"Pot", in th ...
and those involving David Southall, Rodney Ledward and Richard Neale. Such cases of medical malpractice in the 1990s are widely considered to have inspired the government to tighten professional control of
medical practitioner A physician (American English), medical practitioner (Commonwealth English), medical doctor, or simply doctor, is a health professional who practices medicine, which is concerned with promoting, maintaining or restoring health through t ...
s and monitor the quality of their practice for their entire working life. One qualification for life is no longer deemed sufficient. Consequently, medical licenses can now be withdrawn when evidence of serious malpractice emerges. Currently, though such reviews of CPD are entirely voluntary, some form of professional development is already strongly encouraged within the medical profession.


Public trust and safety

Restrictions to employment without licensure can prevent people with criminal records or severe mental health issues from working in occupations that require public trust. Occupations of or affected by the
gambling Gambling (also known as betting or gaming) is the wagering of something of value ("the stakes") on a random event with the intent of winning something else of value, where instances of strategy are discounted. Gambling thus requires three ele ...
industry, may be restricted by licensure, such as a racing secretary in horseracing, or people in the
boxing Boxing (also known as "Western boxing" or "pugilism") is a combat sport in which two people, usually wearing protective gloves and other protective equipment such as hand wraps and mouthguards, throw punches at each other for a predetermined ...
,
mixed martial arts Mixed martial arts (MMA), sometimes referred to as cage fighting, no holds barred (NHB), and ultimate fighting, and originally referred to as Vale Tudo is a full-contact combat sport based on striking, grappling and ground fighting, incor ...
, and
professional wrestling Professional wrestling is a form of theater that revolves around staged wrestling matches. The mock combat is performed in a ring similar to the kind used in boxing, and the dramatic aspects of pro wrestling may be performed both in the ring or ...
industry. People whose occupations put them in physical contact with the public might also be restricted by licensure, including a
barber A barber is a person whose occupation is mainly to cut, dress, groom, style and shave men's and boys' hair or beards. A barber's place of work is known as a "barbershop" or a "barber's". Barbershops are also places of social interaction and publi ...
,
cosmetologist Cosmetology (from Greek , ''kosmētikos'', "beautifying"; and , ''-logia'') is the study and application of beauty treatment. Branches of specialty include hairstyling, skin care, cosmetics, manicures/pedicures, non-permanent hair removal such as ...
, or massage therapist. Occupations that bring a person into the home might also be screened through licensure, including a
chauffeur A chauffeur is a person employed to drive a passenger motor vehicle, especially a luxury vehicle such as a large sedan or limousine. Originally, such drivers were often personal employees of the vehicle owner, but this has changed to special ...
,
landscape architect A landscape architect is a person who is educated in the field of landscape architecture. The practice of landscape architecture includes: site analysis, site inventory, site planning, land planning, planting design, grading, storm water manage ...
, or
arborist An arborist, tree surgeon, or (less commonly) arboriculturist, is a professional in the practice of arboriculture, which is the cultivation, management, and study of individual trees, shrubs, vines, and other perennial woody plants in dend ...
.


Criticism


Exclusion of competition

Historically, in the professionalization process by which trades have transformed themselves into true professions, licensing fast became the method of choice in obtaining the occupational closure required by barring competition from entry to the rites and privileges of a professional group. This was initially the preferred route of regulation whether for physicians, lawyers, the clergy, accountants, bankers, scientists or architects. However, licensing has given way to membership of professional bodies, as a means of excluding competition.


Restrictions on location of work

Individuals practicing a profession in one jurisdiction where no license is required, or where licensing requirements are more lax, face problems with employment when moving to a jurisdiction with more stringent licensing. This can be particularly burdensome on families where one spouse has no choice with regard to location of work (such as military servicemembers), when the second spouse is in a licensed profession. These problems can be avoided by harmonizing laws across jurisdictions, or with reciprocity agreements where licenses from one jurisdiction are recognized in others.


Liberal and libertarian criticism

Licensure restricts entry into professional careers in
medicine Medicine is the science and practice of caring for a patient, managing the diagnosis, prognosis, prevention, treatment, palliation of their injury or disease, and promoting their health. Medicine encompasses a variety of health care pr ...
,
nursing Nursing is a profession within the health care sector focused on the care of individuals, families, and communities so they may attain, maintain, or recover optimal health and quality of life. Nurses may be differentiated from other health ...
, law,
business Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." Having a business name does not separ ...
,
pharmacy Pharmacy is the science and practice of discovering, producing, preparing, dispensing, reviewing and monitoring medications, aiming to ensure the safe, effective, and affordable use of medication, medicines. It is a miscellaneous science as it ...
,
psychology Psychology is the science, scientific study of mind and behavior. Psychology includes the study of consciousness, conscious and Unconscious mind, unconscious phenomena, including feelings and thoughts. It is an academic discipline of immens ...
,
social work Social work is an academic discipline and practice-based profession concerned with meeting the basic needs of individuals, families, groups, communities, and society as a whole to enhance their individual and collective well-being. Social wo ...
,
teaching Teaching is the practice implemented by a ''teacher'' aimed at transmitting skills (knowledge, know-how, and interpersonal skills) to a learner, a student, or any other audience in the context of an educational institution. Teaching is closely ...
,
engineering Engineering is the use of scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad range of more speciali ...
,
surveying Surveying or land surveying is the technique, profession, art, and science of determining the terrestrial two-dimensional or three-dimensional positions of points and the distances and angles between them. A land surveying professional is ...
, and
architect An architect is a person who plans, designs and oversees the construction of buildings. To practice architecture means to provide services in connection with the design of buildings and the space within the site surrounding the buildings that h ...
ure. Advocates claim that licensure protects the consumer through the application of professional, educational and/or ethical standards of practice. Economist
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
opposed this practice, believing that licensure effectively raises professional salary by placing limits on the supply of specific occupations. "It is hard to regard altruistic concern for their customers as the primary motive behind their determined efforts to get legal power to decide who may be a plumber." Restricting entry by licensing is arguably a convenient and effective method of maintaining the high standards, high status and elite privileges of a profession as well as acting to eliminate competition from those who provide a cheaper but (allegedly) sub-standard service. Organizations such as the American Medical Association were explicitly set up to restrict the number of practitioners. However, libertarians like
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
have argued that this process is counterproductive as it seriously restricts the number of active professionals working in society and thus unnecessarily inhibits the working of a
free enterprise In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any ot ...
economy. A 2011 U.S. study estimated that occupational licenses result in 2.8 million fewer jobs, and cost the economy $203 billion per year. The number of jobs requiring a professional licensed represents an increasing fraction of the workforce, from 5% in 1950 to 22% in 2010s. Critics say that low-income consumers, who pay higher prices than required for the level of quality they might require, and low-income job seekers, are disproportionately affected.Why License a Florist?
/ref>


Skepticism regarding necessity

Many professions involving risk to the public do not require professional licenses. For example,
chef A chef is a trained professional cook and tradesman who is proficient in all aspects of food preparation, often focusing on a particular cuisine. The word "chef" is derived from the term ''chef de cuisine'' (), the director or head of a ki ...
s are generally unlicensed, though opening a restaurant may require permits, inspection, and employee training or instructional signage. Becoming a
brain surgeon Neurosurgery or neurological surgery, known in common parlance as brain surgery, is the medical specialty concerned with the surgical treatment of disorders which affect any portion of the nervous system including the brain, spinal cord and ...
typically only requires a medical license; the substantial additional training and experience required to perform this operation competently is managed by the hospitals who employ the surgeons. In the United States, critics have pointed out that (as of 2018) only 60 professions are licensed by all 50 states, but about 1100 by at least one state, including tour guides, bartenders, and interior designers. If many professions are functioning satisfactorily unlicensed in the majority of states, this implies to critics that the licensing is unnecessary for consumer protection. The administrations of both President Obama and President Trump have tried to pressure state and local authorities to reduce overly burdensome licensing requirements.The Onerous, Arbitrary, Unaccountable World of Occupational Licensing
/ref> Excessive requirements include requiring hair braiders to have a full cosmetology license and learn about many unrelated tasks, and requiring casket salespersons to be full licensed funeral directors.


Lawsuits

In the United States, under the Parker immunity doctrine established by the 1943 Supreme Court case '' Parker v. Brown'', state governments are generally exempt from federal
antitrust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...
laws. However, the 2015 decision in '' North Carolina State Board of Dental Examiners v. FTC'' held that a state occupational licensing board that was primarily composed of persons active in the market it regulates has immunity from antitrust law only when it is actively supervised by the state. This allowed a successful lawsuit by unlicensed practitioners of
teeth whitening Tooth whitening or tooth bleaching is the process of lightening the color of human teeth. Whitening is often desirable when teeth become yellowed over time for a number of reasons, and can be achieved by changing the intrinsic or extrinsic color o ...
, who dentists considered a competitive threat.


See also

*
Bar examination A bar examination is an examination administered by the bar association of a jurisdiction that a lawyer must pass in order to be admitted to the bar of that jurisdiction. Australia Administering bar exams is the responsibility of the bar associ ...
* Driver license *
First professional degree A professional degree, formerly known in the US as a first professional degree, is a degree that prepares someone to work in a particular profession, practice, or industry sector often meeting the academic requirements for licensure or accreditatio ...
*
General Securities Representative Exam In the United States, the Series 7 exam, also known as the General Securities Representative Exam (GSRE), is a test for entry-level registered representatives, to buy or sell security products such as corporate securities, municipal securities, ...
* Gun license *
License to practice law An admission to practice law is acquired when a lawyer receives a license to practice law. In jurisdictions with two types of lawyer, as with barristers and solicitors, barristers must gain admission to the bar whereas for solicitors there are dist ...
* Licentiate * Liquor license * Medical license *
Professional licensure in the United States In the United States, the state governments have jurisdiction for issuing most professional licenses to individuals and corporations. In areas that naturally cross states' borders, the national government may be the issuer. Thus the Federal Aviati ...


References


External links


''Licensing Occupations: Ensuring Quality or Restricting Competition''
{{Webarchive, url=https://web.archive.org/web/20070102085736/http://www.upjohninst.org/publications/titles/lo.html , date=2007-01-02 by Morris M. Kleiner
Health Licensing Boards
Professional titles and certifications Occupations