This article is from the PE and EIT Exams FAQ, by Ron Graham ecaxron@ariel.lerc.nasa.gov with numerous contributions by others.
The following people must have a PE license to practice [Mullins]:
o Anyone who offers engineering services to the public.
o Anyone who advertises one's self as an "engineer."
o Half of the principals (i.e. owners) of a company that
offers engineering services to the public.
o Half of the principals of a company that wants to use
the term "engineer" in its name.
This does not include publicly-held companies that provide engineering
services as their primary business. The following get licensed as well,
in practice:
o Many employees of companies whose primary business is
contract engineering.
The following documents (for example) require the review of a PE:
o Electrical power system designs
o Public utility designs
o Construction documents and related designs
o Environmental containment designs
There is a strong likelihood of PE review needed if the thing being
designed has impact on the public, e.g. public safety or utility
availability. Such review would be required prior to construction,
although the *design* can be accomplished by unlicensed engineers.
Some utilities are required by law to hire PEs in some positions.
[Russell]
On the other hand, the following designs will probably not require
such review:
o Control systems design (except where safety is involved)
o Design and manufacture of computer chips
The "industrial exemption" works as follows: if you provide engineering
services to your employer that are related to the design and manufacture
of the company's product, you need not be licensed. The theory is that
the employer assumes the liability in the case of harm to the public, not
the individual engineer. (In the USA, Mississippi is the only state that
does not have the industrial exemption.) The company most likely is covered
by product liability insurance as well. [Mullins] In short, you can
"engineer" a product for your employer, although without certification you
cannot publicly call yourself an "engineer." [Venable]
The "flip side" of licensing is as follows:
o The discipline involved in the licensing process can serve as
a reminder to young engineers of the "ethic" involved in working
in engineering -- some who are unlicensed (and are thus unaware
of the PE's "Canons of Ethics") may at times ignore this.
o Someone with a PE can be sued. This knowledge will at times
help the young engineer to scrupulously avoid failures.
o There is little effort to enforce the law here, unless someone
without a license tries to advertise the services of an engineer.
 
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