Employment—Duty To Disclose Revocation Of Contractor License

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Created
2026-02-13 16:13
Updated
2026-02-13 16:13
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Engineer F had an ethical obligation to report on the employment application the revocation of his contractor’s license.

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Created
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The obligation to provide full and complete disclosure to employers or clients is a critical one for professional engineers. The scope of this obligation is sometimes subject to examination depending upon the issues involved and other factors. Two previous Board of Ethical Review cases provide some background for considering this case. The first is BER Case 97-11, where Engineer A was retained by Client B to perform design services and provide a Critical Path Method (CPM) schedule for a manufacturing facility. Engineer A prepared the plans, specifications, and the CPM schedule. During the rendering of services to Client B on this project, the state board of professional engineers contacted Engineer A regarding an ethics complaint filed against Engineer A by Client C relating to services provided on a project for Client C that were similar to the services being performed for Client B. Client C alleged that Engineer A lacked the competence to perform the services in question. Engineer A did not believe it was necessary to notify Client B of the pending complaint. Later, through another party, Client B learned of the ethics complaint filed against Engineer A and told Engineer A that he was upset by the allegations and that Engineer A should have brought the matter to Client B's attention. In finding that it was ethical for Engineer A not to report to Client B the ethics complaint filed against Engineer A by Client C, the Board noted that while an engineer clearly has an ethical obligation to act as a faithful agent and trustee for the benefit of a client, avoid deceptive acts, be objective and truthful, avoid conflicts, etc., such obligations would not compel an engineer to automatically disclose that a complaint had been filed against the engineer with the state engineering licensure board. As the Board noted, a complaint is a mere allegation and does not amount to a finding of fact or conclusion of law. Said the Board, “No engineer should be compelled to disclose p...

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Engineer F is a professional engineer and applies for a professional engineering position with an engineering firm. Previously, Engineer F was the owner of a fire sprinkler contracting firm which was required to have a contractor’s license. On the engineering firm employment application, there is a question asking whether the engineer “has ever been disciplined in the practice of professional engineering or had his license suspended or revoked?” Engineer F responds in the negative on the employment application. Later, the engineering firm learns that while Engineer F’s engineering license was never revoked or suspended, Engineer F’s contractor’s license was revoked because he allowed an unlicensed individual who was unrelated to his contracting firm to use the contractor license number on another project.

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Created
2026-02-13 16:13
Updated
2026-02-13 16:13
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Did Engineer F have an ethical obligation to report on the employment application the revocation of his contractor’s license?
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39

Total Entities

9/9

Components Populated

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Roles R
w=0.12 384D
Engineer F Professional Engineer Applicant
Applied for a professional engineering position and answered in the negative to the employment application question...
Engineering Firm Prospective Employer
Received Engineer F's employment application containing the disciplinary-history question and later learned that...
Board of Ethical Review Adjudicator
Adjudicating body that analyzes the present case against prior BER precedents, distinguishes an actual adjudication...
Engineer F Former Contracting Firm Owner
Previously owned a fire sprinkler contracting firm whose contractor's license was revoked because he allowed an...
Engineer F Employee Engineer
The Board finds that Engineer F's revoked contractor's license was an actual adjudication of wrongdoing, not a mere...
5 entities
Principles P
w=0.2 384D
Honesty in Employment Disclosure
The Board finds Engineer F's conduct ethically failing because he gave an evasive negative answer to the employer's...
Honesty in Employment Application
Engineer F answers in the negative to the employment application question about ever having been disciplined in the...
Public Safety Paramount at All Times
The Board invokes the first Fundamental Canon to explain that Engineer F's misconduct as a contractor, which related...
Full Disclosure of Adjudicated Wrongdoing
Because Engineer F's contractor's license was revoked for an actual demonstrated violation, an adjudication of...
Ethics Beyond the Minimum
The Board closes by stating that engineering ethics ought to be about going the extra mile to exceed the employer or...
Public Confidence in Whole Person
The Board holds that it must look beyond the specific practice of engineering to the whole person, so Engineer F's...
6 entities
Obligations O
w=0.15 384D
Engineer F Disciplinary Disclosure Duty
Engineer F must answer the employment application question about prior discipline and license suspension or...
Engineer F Public Safety Paramount Duty
Engineer F must hold paramount the safety, health, and welfare of the public at all times, whether in the practice...
Contracting Firm Licensure Duty
Engineer F's fire sprinkler contracting firm was required to have a contractor's license.
3 entities
States S
w=0.1 384D
Firm Discovery Of Revocation
Engineering firm's knowledge of Engineer F's contractor license revocation. Triggered when The engineering firm...
Contractor License Requirement
Engineer F's fire sprinkler contracting firm. Triggered when The firm engaged in fire sprinkler contracting subject...
Unlicensed License Number Use
Engineer F's contracting firm license number as used on another project. Triggered when Engineer F allowed an...
Contractor License Revocation
Engineer F's contractor's license. Triggered when The licensing authority revoked Engineer F's contractor's license...
Engineer F Employment Candidacy
Engineer F. Triggered when Engineer F applies for a professional engineering position with an engineering firm....
Undisclosed Contractor Revocation
Engineer F's contractor license revocation as represented on the employment application. Triggered when Engineer F...
Clean Engineering License Record
Engineer F's professional engineering license. Triggered when Not stated in the case, the license was never...
Adjudicated Contractor Wrongdoing of Engineer F
Engineer F's misconduct in allowing an unlicensed individual to use his contractor license number. Triggered when...
Fire Protection Service Materiality
Engineer F's contracting services related to fire protection of a facility. Triggered when Engineer F's misconduct...
Undermined Employer Trust
The employer-employee relationship between Engineer F and the engineering firm. Triggered when Engineer F's failure...
Engineer F Materiality Awareness
Engineer F. Triggered when The employer's application question about license suspension or discipline is put to...
11 entities
Resources Rs
w=0.1 384D
BER Case 97-11
BER Case 97-11 (topic: whether an engineer must disclose to a client a pending ethics complaint that is a mere allegation)
BER Case 75-5
BER Case 75-5 (topic: whether personal misconduct unrelated to the practice of engineering is subject to the NSPE...
NSPE Code of Ethics
NSPE Code of Ethics (topic: ethical duties of professional engineers, including holding paramount public safety and...
3 entities
Actions A
w=0.1 384D
License Number Lending
Negative Application Response
Nondisclosure Omission
3 entities
Events E
w=0.08 384D
Contractor License Revocation
Employer Discovery of Revocation
2 entities
Capabilities Ca
w=0.07 384D
Engineer F Disciplinary History Representation
Engineer F's duty to answer the employment application question about prior discipline and license suspension or...
Engineer F Contractor Licensure Maintenance
As owner of a fire sprinkler contracting firm that was required to have a contractor's license, Engineer F obtained...
Engineer F Question Intent Recognition
The Board attributes to Engineer F the possessed capacity to recognize that the employer's application question...
Board of Ethical Review Precedent Reasoning
The Board of Ethical Review exercises precedent reasoning by distinguishing the present case from BER Case 97-11,...
4 entities
Constraints Cs
w=0.08 384D
Engineer F License Number Lending Bar
Engineer F must not allow an unlicensed individual unrelated to his fire sprinkler contracting firm to use his...
Engineer F Legalistic Evasion Bar
Engineer F must not rely on a legalistic reading of the employer's question about license suspension or discipline...
2 entities
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