Electrical inspector passed this. Doesn't feel right to me. If its not grounded then it must have been a two prong before. Is it ok to just label the plate like this?
That person did not follow 2017 NEC Article 406.4(D), which specifically addresses all types of receptacle replacements. It is an electrical code violation. Please alert the electrical inspector and tell him that he needs to read Article 406.4(D).
Another violation that I can see (my crystal ball is working again) is Article 314.20, which basically states that the box must be flush. It usually never is, with the wooden wall paneling that I see there. This is a very common and flagrant violation. They need to install a spark shield:
Jim Pauley would probably laugh at me, and say that I'm being an electrical "expecter" -- and not an inspector. But if one removes the plate, they may just find that I am correct.
I'm seeing only (2) options when a Receptacle is replaced (no longer 'grandfathered'):
1) Replace it with a GFCI and a label "No Equipment Ground", or
2) A Standard Outlet from a GFCI labeled "GFCI Protected" and "No Equipment Ground"
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