Relates to fees charged by employment agencies for class "A" or "A-1" employment; provides that employment agencies shall not charge fees for class "A" or "A-1" employment and that certain fees charged shall be refunded.
STATE OF NEW YORK
________________________________________________________________________
5866--A
2013-2014 Regular Sessions
IN SENATE
June 18, 2013
___________
Introduced by Sen. ESPAILLAT -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the general business law, in relation to fees charged by
employment agencies for class "A" or "A-1" employment
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 185 of the general business law,
2 as amended by chapter 460 of the laws of 2012, is amended and a new
3 subdivision 1-a is added to read as follows:
4 1. Circumstances permitting fee. An employment agency shall not charge
5 or accept a fee or other consideration unless in accordance with the
6 terms of a written contract with a job applicant[, except:
7 (a) for class "A" and "A-1" employment, and except] and after such
8 agency has been responsible for referring such job applicant to an
9 employer or such employer to a job applicant and where as a result ther-
10 eof such job applicant has been employed by such employer[; and
11 (b)], except for class "C" employment: [(i)] (a) after an agency has
12 been responsible for referring an artist to an employer or such employer
13 to an artist and where as a result thereof such artist has been employed
14 by such employer; or [(ii)] (b) after an agency represents an artist in
15 the negotiation or renegotiation of an original or pre-existing employ-
16 ment contract and where as a result thereof the artist enters into a
17 negotiated or renegotiated employment contract. For class "C" employment
18 pursuant to this paragraph, an employment agency shall provide an artist
19 with a statement setting forth in a clear and concise manner the
20 provisions of this section and section one hundred eighty-six of this
21 article. The maximum fees provided for herein for all types of place-
22 ments or employment may be charged to the job applicant and a similar
23 fee may be charged to the employer provided, however, that with regard
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04101-06-3
S. 5866--A 2
1 to placements in class "B" employment, a fee of up to one and one-half
2 times the fee charged to the job applicant may be charged to the employ-
3 er. By agreement with an employment agency, the employer may voluntarily
4 assume payment of the job applicant's fee. The fees charged to employers
5 by any licensed person conducting an employment agency for rendering
6 services in connection with, or for providing employment in classes "A",
7 "A-1" and "B", as hereinafter defined in subdivision four of this
8 section where the applicant is not charged a fee shall be determined by
9 agreement between the employer and the employment agency. No fee shall
10 be charged or accepted for the registration of applicants for employees
11 or employment.
12 1-a. Fee refund. An employment agency who has charged or accepted a
13 fee or other consideration for classes "A" and "A-1" employment without
14 a contract prior to October first, two thousand thirteen shall refund
15 the full amount to the job applicant by November first, two thousand
16 thirteen if: (i) such fee or consideration did not lead to the job
17 applicant obtaining employment through the employment agency; or (ii)
18 the fee or consideration was not applied to the job applicant's account
19 for services rendered by the employment agency.
20 § 2. Subdivision 3 of section 185 of the general business law, as
21 amended by chapter 1010 of the laws of 1960, is amended to read as
22 follows:
23 3. Deposits, advance fees. Notwithstanding any other provisions of
24 this section, an employment agency [may] shall not require or accept a
25 deposit or advance fee from any applicant [except an applicant for class
26 "A" or class "A1" employment, and only to the extent of the maximum fees
27 hereinafter provided. Such deposit or advance fee shall be offset
28 against any fee charged or accepted when such employment is obtained.
29 Any excess above the lawful fee shall be returned without demand there-
30 for, immediately after the employment agency has been notified that such
31 employment has been obtained; and all of such deposit or advance fee
32 shall be returned immediately upon demand therefor, if at the time of
33 the demand such employment has not been obtained]. Any deposit or
34 advance fee collected by an employment agency prior to October first,
35 two thousand thirteen must be refunded to the applicant by November
36 first, two thousand thirteen if: (i) such deposit or advance fee did not
37 lead to the job applicant obtaining employment through the employment
38 agency or (ii) the deposit or advance fee was not applied to the job
39 applicant's account for services rendered by the employment agency.
40 § 3. This act shall take effect October 1, 2013.
