Under Michigan Act 299, what happens if a contractor performs work outside their license classification?
Correct Answer
B) Fine and possible license action
Working outside license classification under Act 299 can result in fines and disciplinary action against the contractor's license.
Why This Is the Correct Answer
Under Michigan Public Act 299 (Occupational Code), working outside your license classification is a violation subject to civil fines and disciplinary action by the Department of Licensing and Regulatory Affairs (LARA), including possible suspension or revocation of the license.
Why the Other Options Are Wrong
Option A: Automatic license suspension
Automatic suspension is not the prescribed consequence. Disciplinary action is not automatic — it follows an investigation and hearing process, so the outcome can range from fines to license action, but is not an immediate automatic suspension.
Option C: Warning for first offense only
Act 299 does not provide a 'warning only for first offense' provision. Violations are subject to investigation and formal penalties from the first occurrence, not merely a warning.
Option D: No penalty if work is completed properly
Proper completion of work does not shield a contractor from penalties for working outside their classification. The violation is the act of performing unlicensed-scope work, regardless of quality or outcome.
Memory Technique
Think 'ACT 299 = Fines + Possible Action.' The word 'possible' is key — penalties are discretionary (based on severity), not automatic, and always include a monetary fine component.
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