Summary

License to Work

The data and information here come from IJ’s License to Work report, released in November 2017.

California is the most broadly and onerously licensed state in the nation. Not only does it license 76 of the 102 lower-income occupations studied here—more than all but two other states—its licensing laws rank as the nation’s third most burdensome due to high average fees ($486), lengthy average education and experience requirements (827 days lost), and a high average number of licensing exams (about two). Because it licenses so many occupations so onerously, California is the worst licensing environment for workers in lower-income occupations.

Among the many occupations California licenses are several that are rarely licensed elsewhere. Few other states license dairy equipment still machine setters (two), psychiatric technicians (four), tree trimmers (six) or travel agencies (six). Of those occupations, psychiatric technicians and tree trimmers face particularly steep burdens. Psychiatric technicians must pay $349 in fees to obtain a license to work, compared to a $119 average across licensed states. And tree trimmers must prove 1,460 days (four years) of experience to operate their businesses—more than double the licensed-state average of 574 days.

California also imposes disproportionate burdens on some occupations compared to others that may pose a greater risk to public health and safety. For example, the state’s license for manicurists demands 400 hours (about 93 days) of education. Meanwhile, its license for EMTs requires only 160 hours (approximately 37 days).

As the worst state in the nation when it comes to licensing, California has much work to do. To improve its rankings and expand opportunity, California should repeal or reduce its many needless and irrational burdens, or—if government regulation is necessary—replace them with less restrictive regulatory alternatives.