Hiring & Consumer Protection

A simple, repeatable way to check who you are about to work with, in any industry.

• Confirm the legal business name and where it is registered. Use your state's business registry.
• Check whether the job needs a license in your state. Then look the license up on the official board's own site.
• Make sure the license is active. It should not be expired, suspended, or revoked.
• Look for any discipline, complaints, or enforcement history on the official agency site.
• Ask for proof of insurance and, if required, workers' compensation coverage. Confirm it with the insurer or the state, not just the paper you were handed.
• Search the business name with the words 'complaint', 'lawsuit', and 'review' to see what people are saying.
• Get the full legal name, address, and license number in writing before you pay anything.

The answers to these questions tell you more than any sales pitch.

• What is your license or registration number, and with which agency?
• Who will do the work, and are they employees or subcontractors?
• Are you insured? Can I see a certificate that names me as an interested party?
• What is the total price? What is included, and what is not included?
• How and when do you get paid? What triggers each payment?
• How do you handle changes after the work starts, and what do they cost?
• What is the schedule? What happens if it slips?
• Who do I call if there is a problem? What is your process for fixing it?
• What warranty or guarantee do you offer, and for how long?

These three things get confused constantly. Here is what each one actually means.

• A business registration shows that a company exists as a legal entity. It does not mean the company is qualified or good at the work.
• A license or certificate means a state or local agency decided the holder met its rules for a certain trade or profession. The rules differ by state and by industry. Some industries are not licensed at all.
• Insurance protects against losses. General liability and workers' compensation are different policies with different jobs.
• Workers' compensation covers injuries to workers on the job. In many states, a business with no employees can file for an exemption. An exemption is not the same as coverage.
• A certificate of insurance is a snapshot. Make sure it is current and that it covers the work being done.
• Always confirm licensing and coverage with the official agency or the insurer. Papers can be changed or expired.

Where to go, and in what order.

• Put your concern in writing to the business first, and keep a copy. A clear written record helps at every step after that.
• If a licensed professional is involved, the board that issued the license is usually where you file a complaint. Most boards post their complaint process on their own site.
• Your state Attorney General or consumer protection office handles many consumer complaints and can point you to the right agency.
• The FTC publishes consumer guidance and takes complaints about unfair or deceptive business practices.
• Local building departments handle permit and inspection issues on construction work.
• For unresolved money disputes, small claims court is often the fastest and least expensive route.