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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 88858
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Good Evening, I have a question regarding Licensing with

Customer Question

Good Evening,
I have a question regarding Licensing with Washington State DOL for a Private Security Guard Company.

We have a private security company for several years and this year we were late in renewing our business license. We rec'd notice of the failure to renew the license in August and renewed the business license the next week.

After that, we got a letter saying that a complaint from a local consumer was filed alleging that we are operating without the required licenses.

The letter notes the following allegations: I will note my questions/issues in capital letters next to the text in question.

RCW 18.170.060, (a),(b),(c) states in summary in addition to minimum requirements to obtain a company license that the applicant, in this case the partnership or corporation as the qualifying agent must meet the following requirements.
(a) Possess three years experience as a manager, supervisor, or administrator in the private security business or a related field approved by the director, or be at least twenty one years of age and pass an examination determined by the director to measure the person's knowledge and competence in the private security business.
(b) Meet the insurance requirements of this chapter;
I DON'T UNDERSTAND THIS BECAUSE THE PRINCIPLE OF THE BUSINESS IS LICENSED AND HAS HAD A CURRENT LICENSE FOR SEVERAL YEARS. AM I MISREADING THIS?

RCW 18.170.080 states in part a current certificate of insurance with comprehensive liability of at least twenty-five thousand dollars for bodily or personal injury and twenty-five thousand dollars for property damage.

WE HAVE FULL INSURANCE AND THAT CAN BE VERIFIED/PROVIDED. NO ISSUE THERE.

RCW 18.170.160 (2) After January 1, 1992, a person is guilty of a gross misdemeanor if he or she owns or operates a private security company in this state without first obtaining a private security company license.

THE LICENSE WAS OVERDUE ON RENEWAL AND THAT HAS BEEN TAKEN CARE OF. THE BUSINESS LICENSE IS FULLY VALID.

In addition to the unprofessional conduct described in RCW 18.235.130, the following conduct, acts, or conditions constitute unprofessional conduct: (1) knowingly violating any of the provisions of this chapter or the rules adopted under this chapter. (2) Practicing fraud, deceit or misrepresentation in any of the private security activities covered by this chapter. (3) Knowingly making a material misstatement or omission in the application for a firearms certificate. (4) Not meeting the qualifications set forth in RCW 18.170.030, 040, 060.

NOT SURE WHY THIS STATEMENT IS IN HERE? IS A WARNING OF SORTS?



What we need from you:
You're written explanation addressing the issue of operating a security guard company and aiding and abetting unlicensed practice in Washington.

THE LICENSE HAS BEEN RENEWED. WE WILL PROVIDE THAT VERIFICATION. ANYTHING ELSE NEED TO BE DONE WITH THAT?

You're written explanation addressing the issues of employing unlicensed, untrained security guards to provide security service to the public or private contract.

WE ARE GOING TO HAVE TO BITE THE BULLET ON THIS ONE AND ADMIT TO SIMPLY FAILING TO RENEW THE SECURITY GUARD LICENSES. THE CHECK HAS BEEN SENT TO DOL TO FULLY BRING ALL LICENSES BACK UP TO DATE. ANYTHING ELSE NEED TO BE DONE?


You will need to provide a complete by name list with SS numbers all security guards employed to compare with the wage reports obtained through Employment Securities.

WE WILL PROVIDE THE LIST OF NAMES/SS#. SOME EMPLOYEES ARE NO LONGER WITH THE COMPANY. DOES THE REASON FOR TERMINATION HAVE TO BE SPECIFIC?

A complete list of all clients, locations and phone numbers to include brief description of the agreed security services.

WE WILL PROVIDE THIS INFORMATION, BUT THE CONCERN IS- IF CONTACTED, WE MIGHT LOOSE THE CONTRACTS. IS THERE A RULE AROUND CONTACTING CLIENTS OR ?

In conjunction with the investigation of this correspondence will serve as official notice regarding your aiding and abetting unlicensed practice. Additionally, you may provide supporting documentation, which will further explain your response.

NOT QUITE SURE WHAT THEY MEAN BY AIDING AND ABETTING.

AND FINALLY--THE KICKER IF YOU WILL, (ACTUALLY THERE ARE TWO) THERE IS A LONG TIME EMPLOYEE DOING WORK AND HE WAS NEVER LICENSED DUE TO AN ISSUE WITH THE BACKGROUND CHECK. HE WAS/IS SUCH A GOOD EMPLOYEE AND WE DID ALLOW HIM TO WORK WITHOUT THE LICENSE. WE ARE NOT SURE IF DOL STARTED THIS INVESTIGATION DUE TO THIS PERSON OR FOR SOME OTHER REASON. WE ARE WILLING TO ADMIT TO THE FAILING TO RENEW LICENSES, BUT DO NOT WANT TO DISCLOSE THAT WE HAVE ALLOWED THIS PERSON TO WORK UNLICENSED. NOT SURE WHAT TO DO. TAKE A CHANCE AND NOT PROVIDE HIS ACTUAL WORK INFO OR BITE THE BULLET AND PUT THIS DOWN. A SIMILAR SITUATION OCCURRED WITH ANOTHER EMPLOYEE WHO WAS TRAINING FOR A MONTH OR TWO TO BE A GUARD AND DIDN'T GET A LICENSE. HE IS NO LONGER WITH THE COMPANY, BUT WAS LISTED FROM THE WAGE REPORT.
Thank You
Submitted: 3 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 3 years ago.
Okay, all of these things cited in the letter are from the allegations made. If your company has all of these requirements met, then it is a simple matter of proving them. As far as the unlicensed person it is best to disclose and take the fine for that then hide it and risk suspension of license because they likely know all about that already. The terminated employees, you should give as specific of a reason as possible for. In most of these cases companies turn these letters over to their company attorney to craft the response and put together evidence to disprove each allegation and that is what you should be doing. List each allegation they make in the letter, then provide your explanation and tell them you are attaching proof that you have not violated that provision.

As far as the unlicensed person, if this is your first violation in most cases all they will do is fine the company if you do not lie about it.


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