License Suspension vs. Revocation: What’s The Difference and Why It Matters

Unfortunately, it is a common situation: a business that holds a license from a state agency receives notice of a complaint against its license. The business owner and its employees are occupied with the everyday tasks that keep the company afloat. So, the complaint is set aside to be answered later and then forgotten. Months later, the business receives notice that their license is or may soon be suspended or revoked. The business owner must now assess the effect of the suspension or revocation and determine their available options.

In this situation, it is key for the business owner to understand how a suspension of a license differs from a revocation and the best means to address the action. It is also important for the business owner to consider the stage of the administrative disciplinary proceedings, as the posture of the case can greatly affect the options available to the business.

What is a License Suspension?

A license that is suspended still exists but cannot be acted under. The licensee does not enjoy the rights or privileges that normally would be the benefit of possessing the license. However, a suspended license may be returned to a normal, active status when certain condition(s) are met. The most common condition is the passage of time. For example, a license may be suspended for a one-year period to run from the starting date of the suspension. Once a year passes, the license may automatically return to active status and be used again. Another common condition is satisfaction of a payment.  This is typically either an administrative fine to be paid to the licensing agency or restitution to a person who has suffered a financial loss due to the licensee’s actions. 

An agency may impose a suspension that terminates upon the satisfaction of one or multiple conditions. The agency must specify the conditions that pertain to a suspension, as a failure to provide the licensee with the conditions or an “indefinite” suspension of a license with no conditions attached could be viewed as a violation of the licensee’s rights. Note that an agency may not automatically receive notice when the conditions pertaining to a given suspension have been satisfied. It is thus prudent for a suspended licensee to contact their licensing authority once they believe the conditions have been satisfied to ensure that the license is reactivated.

What is a License Revocation?

In contrast to a suspension that lasts for a temporary amount of time, the revocation of a license acts to nullify the license altogether. A revocation may be permanent or not. A permanent revocation is a complete revocation of the license which contains the condition that the licensee may not again reapply for the same type of license. Permanent revocations are a harsh penalty. Accordingly, they usually only result from the settlement of a disciplinary case when a licensee has committed an egregious act and wishes to avoid a high administrative fine.

A non-permanent revocation is what is typically referred to when the term “revocation” is used. This is a revocation of an existing license without any condition that would prevent a licensee from applying for a license again in the future. However, this does not typically mean that a licensee may just choose to have their license revoked and then immediately apply for and receive a new, virtually identical license. In Florida, licenses are a privilege and not a right. Because of this, most license applications have moral qualifications and/or character standards that consider past circumstances such as regulatory actions against an applicant’s license. This means most parties whose licenses are revoked must wait for a few years before reapplying for a license. They can then demonstrate that they were compliant with laws and regulations during their time without a license and that they are of suitable moral character to obtain a license. 

Why the Difference Between Suspension and Revocation Matters

Although license suspensions and revocations may have the same effect for a limited amount of time, they must be addressed differently. A business whose license has been suspended should take note of the conditions attached to its suspension to see if their satisfaction may be expedited. For example, a suspension conditioned upon repayment of funds to a consumer may be quickly addressed. This might be done by moving funds between accounts or selling assets to compensate the consumer and reactivate the license. A suspension for a given time period, however, unfortunately just requires the passage of time. A business whose license has been revoked should look to see if this revocation is permanent or not. If the revocation is not permanent, the business should consider the circumstances that led to the revocation. This can help it determine the proper length of time before submitting a new license application.

One key qualifier exists. A final order imposing either a license revocation or suspension may typically be appealed within thirty days of the date the final order was rendered. Accordingly, if a license becomes aware that they are still within the thirty-day appeal window, they should act swiftly to ensure that they have a chance to potentially regain their license.

Why Hire a Jimerson Birr Attorney

Whether your license is facing a potential suspension or revocation or is already subject to one, complicated factors are at play. Jimerson Birr’s attorneys are sophisticated, experienced administrative law practitioners. If your license is threatened by a revocation or suspension due to a disciplinary complaint, our attorneys will advocate for you. In situations where your defenses are limited, we pursue creative settlements with conditions for suspension that are tailored to fit your individual situation. We are experienced in administrative appeals and will evaluate your situation thoroughly for procedural or substantive defects. If your license has already been suspended or revoked, we will partner with you to determine the best way to have your license reactivated or a new license issued. Contact Jimerson Birr today to take the next steps to defend your license and your livelihood!