• Maryland State Law provides protection for home owners through licensing & regulating home improvement contractors by the Maryland Home Improvement Commission (MHIC).

• It is a crime in this State for any person to engage in or transact any home improvement business, or hold himself out to the public as doing home improvement business, unless he is licensed by the Maryland Home Improvement Commission (MHIC).

• The provisions of this state law may not be waived by agreement.

• Knowingly & willfully engaging in the home improvement business without obtaining a MHIC license is punishable by a fine not exceeding $5,000.00 or imprisonment not exceeding 2 years , or both.  Doing any home improvement business with or through any person who is subject to licensing but is not licensed as required is punishable by a fine not exceeding $1,000 and/or imprisonment not exceeding 6 months, or both.  For information concerning the Home Improvement Commission, including whether a person is licensed & his record with the MHIC, call (410) 333-6309.  You should report any solicitation or activity in your neighborhood by an unlicensed contractor to your local police or sheriff's department or the Maryland State Police.

• CONSTRUCTION LICENSE NO SUBSTITUTE.  State construction licenses can't be used instead of MHIC licenses.

• BUILDING PERMITS.  Certain home improvement work requires building permits issued by local Permits & Inspections Office.  Failure to obtain necessary permits may result in your job being shut down by local building inspectors.

• MHIC LICENSE NUMBERS ON VEHICLES.  Contractors & subcontractors must conspicuously display their MHIC license numbers on all vehicles used to perform home improvement work.

• BONA FIDE EMPLOYEE.  You may hire a bona fide employee to perform home improvement work on your home.  You must meet Maryland State Law & the Federal Income Tax Law requirements regarding withholding, remitting, & reporting of wages, taxes withheld, FICA, unemployment insurance etc. (See IRS Form 942).  Failure to withhold, remit, & report wages & taxes could make you liable.  Under certain circumstances, you may not be required to provide Worker's Compensation Insurance coverage for bona fide employees.  However, your Homeowners Insurance policy may not cover you when your employee is injured on the job.  Check with your insurance carrier.

• ASK A LAWYER.  Any questions about your responsibilities & liabilities?  Consult an attorney.

FOR YOUR PROTECTION, ENGAGE ONLY CONTRACTORS LICENSED BY THE MARYLAND HOME IMPROVEMENT COMMISSION (MHIC)