The Expired License and the 'Case Manager'
Rico owns a licensed Nevada PI agency. His individual license expired 45 days ago, and he has not renewed it. He opens a second office in Reno and hires Sam, who has no license. Sam interviews witnesses, serves subpoenas, obtains signed statements, and signs reports as "case manager." The office door says "Licensed Private Investigators." Sam's business card says "Licensed Investigator-Nevada." Rico tells a client that Sam does not need a license because he is "just a case manager" and because Rico supervises him. A competitor complains to the Board. Rico asks whether he can keep operating while he renews and whether Sam's work is lawful.
1. Identify the licensing violations shown by these facts.
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Rico has at least three licensing problems. First, his individual PI license expired 45 days ago; without a current license he cannot provide investigative services for clients or hold himself out as licensed. Second, Sam is performing core PI work-witness interviews, subpoena service, statements, and signed reports-without a license. Third, the office signage and Sam's card say "Licensed" when neither Sam nor the Reno office is properly licensed. Nevada requires a license to engage in the business of a private investigator for compensation, and the Board treats unlicensed activity and false advertising as disciplinary matters. The fact that Rico calls Sam a "case manager" does not change what Sam actually does; titles do not control.
2. Does the employee exemption in NRS 648.110 protect Sam? Explain.
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The employee exemption in NRS 648.110 is narrow. It generally covers a person employed exclusively by one employer in connection with the affairs of that employer only-not an employee of a PI agency who investigates for the agency's clients. Sam is not investigating Rico's own internal affairs; he is performing billable investigative services for customers. That is exactly what the licensing statute regulates. Sam would need his own license or would need to qualify under a licensed individual, depending on the Board's rules, but he cannot lawfully conduct client investigations merely because Rico supervises him. Branch office requirements also apply; Rico should confirm with the Board whether the Reno location must be separately licensed or registered before it operates.
3. What corrective steps should Rico take, and what Board exposure does he face?
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Rico should stop all client work immediately, including Sam's interviews and subpoena service, until the licenses are corrected. He should renew his individual license, apply for any required branch office authorization, and either have Sam apply for a license or reassign Sam to non-investigative duties under direct supervision. He should remove the "Licensed Private Investigators" sign and Sam's "Licensed Investigator" cards, correct the website and advertising, and notify current clients of the interruption. When responding to the Board, he should provide a written corrective action plan, admit the lapse, and document the steps taken. The Board can impose fines, suspend or revoke licenses, and order cease-and-desist relief; cooperation and prompt correction may reduce, but not eliminate, exposure.