An out of state plumber who is exam eligible not licensed should I employ?

This is the way that it works, there are so many liabilities is the reason for the license in the first place. If you live in an area that requires a license, they see work being done, a neighbors reports you then they red tag the job and fine you. Lets say he does a job and then pours concrete over the job without a permit and you get caught, they will make you tear it all up so they can see what has been done. You say he is exam ready, but that is so lame and I know why you want him to do the work because of the cost factor, but don't do it, it's not worth it and if you want to sell your home and inspector finds work not up to code, you'll be doing the project twice.

No way should you hire him. You want to cover all the bases so you won't have problems down the road - they can be costly. Hiring him would be like driving a car without insurance.

no