Common Contractor License Violations That Can Cost Your License

An asbestos supervisor in Syracuse had been in the business for 15 years. He knew the regulations, trained his crews properly, and had never had a compliance issue. But in March, he got busy, missed his annual renewal deadline by three weeks, and kept working while waiting for his “renewal to process.”

Then an inspector showed up at a school abatement project, asked to see his license, and found it had expired 21 days earlier. The project shut down immediately. The school district terminated the contract. The supervisor was fined $8,500. And his license was suspended for six months — meaning he couldn’t work or bid on new projects for half a year.

One mistake. One missed deadline. Six months of lost income.

If you hold environmental licenses in New York — asbestos, lead, mold, OSHA, or any combination — you’re operating in one of the most heavily regulated industries in the state. NYSDOL, EPA, OSHA, and other agencies conduct thousands of inspections each year, and they don’t issue warnings or second chances.

This guide breaks down the 10 most common licensing violations contractors face, explains how enforcement works, details penalties by agency, and provides a practical compliance checklist to help you avoid becoming the next cautionary tale.

 

 

Why Licensing Violations Matter (and How They’re Enforced)

Licensing violations aren’t just paperwork issues — they’re legal violations that can shut down your projects, void your insurance, and end your career.

How NYSDOL, EPA, and OSHA Conduct Inspections

  • On-site inspections: Inspectors visit job sites (announced or unannounced) and check licenses, containment setups, and documentation.

  • Complaint-driven investigations: Anyone — a neighbor, client, or competitor — can trigger an inspection.

  • Post-incident investigations: If an injury or contamination occurs, penalties increase significantly.

  • Random audits: Agencies may request records at any time; missing files can result in citations.
     

Key insight: Most violations are discovered through complaints, not random inspections. Your biggest compliance risk is a dissatisfied client or competitor.

 

 

The 10 Most Common Contractor License Violations

1. Working with an Expired License

  • Why it happens: Missed renewal deadlines or assumptions that “in process” renewals are valid.

  • Penalties: $2,000–$10,000 fine, immediate project shutdown, suspension until renewal.

  • How to avoid it: Set reminders 60 days before expiration; renew at least 30 days early.
     

 

 

2. Allowing Uncertified Workers on Job Sites

  • Why it happens: Hiring without verifying credentials.

  • Penalties: $5,000–$20,000 per worker, shutdown, suspension.

  • How to avoid it: Verify every license and certificate before work begins.
     

 

 

3. Working Outside Your License Scope

  • Why it happens: Misunderstanding license limits.

  • Penalties: $5,000–$15,000, shutdown, possible criminal charges.

  • How to avoid it: Know what each license allows; subcontract specialized work.
     

 

 

4. Inadequate Containment and Work Practices

  • Why it happens: Cutting corners or misunderstanding requirements.

  • Penalties: $3,000–$15,000, stop-work orders, OSHA citations.

  • How to avoid it: Follow training strictly; maintain proper containment and PPE use.
     

 

 

5. Missing or Incomplete Documentation

  • Why it happens: Poor recordkeeping or unawareness of requirements.

  • Penalties: $1,000–$10,000 per missing record, suspension.

  • How to avoid it: Keep a complete project file for at least 3 years.
     

 

 

6. Improper Waste Disposal

  • Why it happens: Avoiding disposal costs or ignorance of regulations.

  • Penalties: $10,000–$50,000, license revocation, criminal charges.

  • How to avoid it: Only use licensed disposal facilities and obtain waste manifests.
     

 

 

7. Conflict of Interest (Mold Assessment & Remediation)

  • Why it happens: Performing both assessment and remediation on the same project.

  • Penalties: $5,000–$15,000, suspension or revocation.

  • How to avoid it: Keep assessment and remediation separate — legally and operationally.
     

 

 

8. Failure to Provide Pre-Work Notifications

  • Why it happens: Forgetting or skipping required notices.

  • Penalties: $2,000–$10,000 per project, suspension.

  • How to avoid it: Always submit asbestos and lead notifications before work begins.
     

 

 

9. Skipping Required Pre-Renovation Testing

  • Why it happens: Assuming materials are lead- or asbestos-free.

  • Penalties: $5,000–$20,000, project shutdown, EPA/NYSDOL fines.

  • How to avoid it: When in doubt — test. Or follow safe work practices as if contamination is present.
     

 

 

10. Lapsed Insurance or Bonding

  • Why it happens: Missed payments or reduced coverage.

  • Penalties: License suspension until coverage is verified.

  • How to avoid it: Set auto-pay and confirm coverage meets NYSDOL limits.
     

 

 

What Happens When You’re Cited

  1. Notice of Violation – outlines the issue and proposed penalty.

  2. Response Period – typically 15–30 days to respond or request a hearing.

  3. Hearing (if requested) – opportunity to present evidence.

  4. Final Determination – includes fines, suspension, or revocation.
     

Fines by Agency

Agency

Penalty Range

NYSDOL

$2,000–$10,000 per violation

EPA

$16,000–$44,000 per violation

OSHA

$3,000–$15,000 (serious), up to $156,000 (willful)

NYSDEC

$10,000–$50,000 per incident

Fines add up quickly — multiple violations mean multiple penalties.

 

 

How One Violation Triggers Multi-License Audits

A single expired asbestos license can prompt full audits of your lead and mold licenses. Agencies may cross-check all certifications, projects, and training records — multiplying exposure and fines.

 

 

Real Case Studies

  • Expired Asbestos License: Buffalo contractor fined $7,500; six-month suspension; $150K lost income.

  • Uncertified Workers: Long Island company fined $18,000; one-year suspension.

  • Improper Waste Disposal: Westchester contractor fined $45,000; permanent revocation and criminal charges.
     

 

 

Monthly Compliance Checklist

☐ Verify all licenses are current and valid
☐ Confirm all workers hold proper certifications
☐ Review project documentation for completeness
☐ Check insurance coverage and expiration dates
☐ Confirm notifications submitted (asbestos, lead)
☐ Review disposal manifests and records
☐ Confirm refresher training completion
☐ Update air monitoring and clearance reports
☐ Address pending violations or notices
☐ Schedule renewal training 90 days out

A 10-minute monthly audit can save thousands in fines and months of lost work.

 

 

What to Do If You Receive a Violation

  1. Don’t ignore it.

  2. Read and understand the notice.

  3. Respond within the deadline.

  4. Consult a compliance expert or attorney.

  5. Document all corrective actions.
     

 

 

Stay Compliant with EEA’s Ongoing Training & Support

Environmental Education Associates (EEA) provides:

  • Annual refresher training for asbestos, lead, mold, and OSHA

  • Compliance consultation and audit prep

  • Documentation templates and checklists

  • Expert instructors with real-world enforcement experience
     

Stay ahead of enforcement — not behind it. Register for compliance training today and protect your license, your business, and your livelihood.

 

 

Final Thought

Licensing violations are expensive, disruptive, and usually avoidable. The most common issues — expired licenses, uncertified workers, poor containment, missing documentation, or improper disposal — all stem from preventable mistakes.

Use the checklist above, stay current with training, and partner with EEA to keep your business running safely, legally, and profitably.

Your license is your livelihood. Protect it.