Occupational Licensing in New York

What is Occupational Licensing?

An occupational or professional license is a permit issued by the government that lets someone work in a particular field. In New York, more than one out of five workers must now get an occupational license before they can legally do their jobs. But many licenses don’t even improve service quality or protect the public from actual harm.

Licenses Create Barriers to Working in New York

Occupational licenses often impose high barriers to entry. That makes it much harder for people to find work or to start a new business. According to the Institute for Justice’s report, License to Work, the average license for low- and moderate-income jobs in New York takes 275 days of education and experience. And those required classes can be very expensive.  

For instance, cosmetology is one of the state’s most popular licenses. In New York, it takes at least 1,000 hours of classes to get a license in cosmetology. On average, a cosmetology program in the state costs $13,381, while the average student takes out $6,735 in federal student loans. But despite such a hefty investment, many cosmetologists barely earn enough to get by: Half of cosmetologists make less than $28,220 a year. 

All told, the state’s licensing requirements come with heavy costs. A separate study by IJ, At What Cost?, estimated that occupational licensing costs the state’s economy $13 billion and leads to 108,000 fewer jobs each year.  

Licensing Lawsuits by the Institute for Justice in New York 

On behalf of professional counselor Elizabeth Brokamp, the Institute for Justice is currently challenging New York’s teletherapy rules. During the pandemic, the state has been waiving, on a monthly basis, its requirement that only counselors licensed by the state of New York can provide teletherapy to clients. But whenever government regulators decide the pandemic is over, that waiver will expire, and Elizabeth will no longer be able to help her clients.   

Can You Get a License to Work with a Criminal Record in New York? 

Licensing boards in New York can disqualify applicants over their criminal record if they believe issuing the license would pose an “unreasonable risk” to public safety. New York bans boards from using arrests, sealed records, and vague standards like “good moral character” to deny licenses. Overall, New York received a C+ for its protections in IJ’s Barred from Working report.  

How You Can Help

If you are a New York resident and you want to help fight against these unfair and unnecessary licensing laws, there are a few ways you can get involved. You can donate to the Institute for Justice, sign up for our email updates, and share our message with your network. Together, we can make sure that all New York workers have the economic liberty they deserve.