Professional License Verification: A Guide for Employers
Employers can verify professional licenses for free through state licensing board websites, or use automated services like Nursys for nursing ($30) and BrokerCheck for financial services. Best practice: verify before hire, then monitor quarterly for expirations and disciplinary actions.
Why does license verification matter for employers?
Legal and Regulatory Compliance
Most industries with licensed professionals have legal requirements for employers:
- Healthcare: Joint Commission, CMS, and state health departments require license verification
- Financial Services: FINRA, SEC, and state regulators mandate credential checks
- Construction: OSHA and state contractor boards enforce licensing requirements
- Legal Services: State bars require verification of attorney credentials
Risk Management
Employing unlicensed individuals exposes your organization to:
- Malpractice liability
- Regulatory fines and sanctions
- Loss of accreditation or certifications
- Reputational damage
- Criminal prosecution in severe cases
Quality Assurance
License verification ensures your workforce meets minimum competency standards established by regulatory bodies.
What are the best methods for verifying professional licenses?
Method 1: State Licensing Board Websites
Every state licensing board maintains a public database for license lookup. This is the authoritative source for verification.
Advantages:
- Free of charge
- Authoritative information
- Updated in real-time
Disadvantages:
- Time-consuming for large workforces
- Must check each state separately
- No automated alerts for status changes
Method 2: Third-Party Verification Services
Commercial services aggregate licensing data across states and professions.
Common providers include:
- National Practitioner Data Bank (healthcare)
- Nursys (nursing licenses)
- Professional background screening companies
- Industry-specific verification platforms
Advantages:
- Consolidated multi-state checks
- Automated monitoring
- Standardized reports
- Integration with HR systems
Disadvantages:
- Ongoing costs
- May not be as current as primary sources
- Coverage varies by profession
Method 3: Primary Source Verification
Direct confirmation from the licensing authority via letter, email, or phone.
When to use:
- High-stakes positions
- When online records are unclear
- For international credentials
- When regulatory audits require it
What are the best practices for license verification?
At Time of Hire
- Verify before start date: Never allow work before confirmation
- Document the verification: Save screenshots, reports, or confirmation emails
- Verify all licenses: Check each state and license type the employee claims
- Confirm specialty credentials: Board certifications, advanced practice authorizations
Ongoing Monitoring
| Frequency | Actions |
|---|---|
| 30 days before expiration | Send renewal reminders to employees |
| Quarterly | Run verification checks on all licensed staff |
| Annually | Comprehensive audit of all credentials |
| Immediately | Upon learning of any disciplinary action |
Documentation Requirements
Maintain records that include:
- Date of verification
- Source used (website URL, service name)
- License number and status confirmed
- Name of person who performed verification
- Any discrepancies noted
What are the verification requirements by industry?
Healthcare
Healthcare organizations face the most stringent verification requirements:
- The Joint Commission requires primary source verification
- CMS ties reimbursement to proper credentialing
- State health departments may audit license files
- DEA registration must be verified separately for prescribers
Healthcare-specific resources:
- National Practitioner Data Bank (NPDB)
- Nursys for nursing licenses
- Federation of State Medical Boards for physicians
- State boards for allied health professionals
Financial Services
Financial service firms must verify:
- FINRA registration (BrokerCheck)
- SEC registration (IAPD)
- State insurance licenses (NIPR)
- CPA licenses (state boards)
Construction and Trades
Contractor licensing verification includes:
- State contractor license boards
- Local municipality requirements
- Specialty licenses (electrical, plumbing, HVAC)
- Insurance and bonding verification
How do I handle license verification problems?
License Not Found
If you cannot locate a license:
- Confirm spelling of name (including maiden names)
- Check all possible states of licensure
- Ask the applicant for their license number
- Contact the licensing board directly
License Shows Issues
When verification reveals problems:
| Issue | Action |
|---|---|
| Expired license | Do not proceed with hire until renewed |
| Disciplinary action | Review details, consult legal counsel |
| Restrictions on practice | Evaluate if role is compatible with restrictions |
| Cannot verify | Require primary source documentation from candidate |
Discrepancies in Application
If license information doesn’t match what was provided:
- Give the candidate opportunity to explain
- Document all communications
- Verify correct information independently
- Consider implications for hire decision
How do I build a license verification program?
Step 1: Identify Requirements
- List all licensed positions in your organization
- Determine regulatory requirements for each
- Establish which licenses must be verified
Step 2: Choose Verification Methods
- Select tools based on volume and profession mix
- Consider integration with existing HR systems
- Balance cost with comprehensiveness
Step 3: Create Policies and Procedures
Document:
- Who is responsible for verification
- Timeline requirements
- Escalation procedures for issues
- Record retention requirements
Step 4: Train Staff
Ensure responsible staff understand:
- How to use verification tools
- What documentation is required
- How to handle discrepancies
- Regulatory requirements
Step 5: Implement Monitoring
Set up systems for:
- Expiration date tracking
- Periodic reverification
- Disciplinary action alerts
- Audit preparation
Technology Solutions
Modern verification often involves technology:
Automated Verification Platforms
- API connections to licensing databases
- Bulk verification capabilities
- Expiration tracking and alerts
- Compliance reporting
Integration Options
- HRIS integration (Workday, ADP, etc.)
- Credentialing software for healthcare
- Background check provider integrations
- Custom database solutions
Emerging Technologies
- Blockchain-based credential verification
- AI-powered document analysis
- Real-time monitoring services
- Portable digital credentials
Regulatory Audits
Be prepared for audits by maintaining:
- Complete verification records for all licensed employees
- Documentation of verification process and timing
- Evidence of ongoing monitoring
- Corrective action documentation for any issues
Common Audit Findings
| Finding | Prevention |
|---|---|
| Expired licenses in files | Implement expiration tracking |
| Incomplete documentation | Use standardized verification forms |
| Delays in verification | Verify before hire, not after |
| No ongoing monitoring | Schedule regular reverification |
Key Takeaways
- Verify before hire: Never allow unlicensed practice
- Use authoritative sources: State boards are the gold standard
- Monitor ongoing: Licenses can expire or be disciplined
- Document everything: Auditors will ask for proof
- Build systems: Manual processes don’t scale
Need help understanding licensing requirements across states? Explore our professional licensing guides for industry-specific information.