There are several less restrictive ways to regulate work

Legislators should consider alternatives to licensing of insurance adjusters


** There are several less restrictive ways to regulate work
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CONTACT: Julie Grace, Badger Institute Policy Analyst, at 414-225-9940 or at [email protected] (mailto:[email protected])

Milwaukee, WI – As the Wisconsin Assembly today considers a bill ([link removed]) to create a new state license and regulations governing the public adjuster profession, Badger Institute Policy Analyst Julie Grace encouraged legislators to consider less restrictive alternatives.

“Occupational licensing can affect both consumers and workers in unintended ways,” said Grace, who has written about the consequences of burdensome occupational licenses on the economy and those seeking employment. “While licenses are often created in the name of public health and safety, the resulting boards and regulations can become anti-competitive, fencing out aspiring professionals and driving up costs.”

Licensing is the most restrictive of regulatory options available to lawmakers. In addition, the U.S. Supreme Court in 2015 ([link removed]) highlighted the “risks licensing boards dominated by market participants may pose to the free market.” Given these realities, lawmakers should weigh alternatives such as registration, inspection, third-party professional certification or mandatory bonding requirements. Such options uphold consumer protections without creating licensing structures that erect barriers to work, increase consumer costs and inhibit mobility.

Click here ([link removed]) for more information on the impact of, and alternatives to, occupational licensing.

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