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The Coalition for the Homeless is a nonprofit group that provides services to those on society’s fringes. The group employs about a half-dozen licensed social workers and a nurse, which is technically illegal under state law.

“The state law right now apparently prohibits nonprofit organizations like Coalition for the Homeless from hiring licensed social workers,” says Patrick Markee of the Coalition for the Homeless.

The issue is with licensed professions, some 50 of which are regulated by the New York State Education Department, from acupuncture to dentistry to speech pathology. On the theory that licensed professionals shouldn’t be supervised by unlicensed professionals, these individuals can’t be employed by corporations, including nonprofits.

Hospitals are exempt, so they can hire doctors and nurses. So are places like Lens Crafters, so they can hire optometrists.

Social service groups had until last week to apply individually for a waiver. Those who didn’t are now committing a crime.

How this state law will be enforced is another question. It seems unlikely social service groups or other organizations will be prosecuted, but the law does create significant problems. In applying for city funding, for instance, a group must be certified as being in compliance with all city and state laws.

“Even if you don’t get busted, if you’re violating that law, and the city wants to contract with you, they generally don’t contract with people who are violating laws,” says Michael Stoller, executive director of the Human Services Council.

“I think we ought to take another look at the law, see how we can tweak it,” says State Senator Toby Ann Stavisky.

Stavisky says changing the law makes more sense than sifting through hundreds of waiver applications. So far, there is no legislation in the works in Albany.