Joe-
Lots of that goes on but, as I'm sure you know, his "license" is no good here in Michigan. Even if it were a state issued license, we have no reciprocity with any other states (which is pretty much why nobody else honors ours). So if he doesn't hold an apprentice registration, a journeyman's license, or a master's license he can't legally work here. Some states don't require all of the electricians on the job to be licensed. The contractor's license covers all of the employees.