Contractor License Reciprocity, What is It?
1. a reciprocal state or relation.
2. reciprocation; mutual exchange.
3. the relation or policy in commercial dealings between countries by which corresponding advantages or privileges are granted by each country to the citizens of the other.
Reciprocity Agreements Between States
As a contractor, you may have heard that the license you currently hold will “get you reciprocity” in another state. But what does that mean? The meaning of reciprocity can vary from state-to-state, but generally it is the state’s willingness to waive the examination requirement by accepting proof of licensure from the reciprocating state.
Reciprocity is normally limited to states that have “substantially” similar requirements. For contractors, this means that you can only obtain a license by reciprocity if the license you currently hold was obtained in a way that is similar enough to the process of licensure in the state you wished to be licensed in. Reciprocity does not allow you to simply register your business and begin working. You must still go through the application process and meet all the requirements. Moreover, although reciprocity waives the requirement of a trade exam, in many cases the specific states business and law exam is still required.
Misconceptions About Reciprocity
A common misconception about reciprocity is the idea that once you are licensed in a certain state you will be able to “jump” states and obtain licenses in any state that has reciprocity. However, that is not how the process works. “Jumping” states is trying to obtain a license in another state with a license you received through any process other than examination. Whether that be by endorsement, transfer, or reciprocity. Jumping states is not allowed.
The truth is that in order to qualify for reciprocity you must have obtained your license by an examination that is substantially similar to the state in which your are attempting to reciprocate into. A license verification will be required and the means by which you obtained your current license will be listed on the verification.
Am I Eligible for Reciprocity?
If you are currently licensed and you obtained your license by examination, you may be eligible for reciprocity in certain states. This process can be confusing and the list of eligible states and requirements is constantly changing. The good news is that the experts here are Nationwide Contractor Licensing can help you through the entire process. Our team is experienced with the reciprocity process and can determine if you qualify for this route to licensure.
Having NCL on your side can save you valuable time and money by ensuring that you apply the right way the first time. We know that time is your most valuable asset. Call today or request a free quote to see if you are eligible for licensure by reciprocity.