Bill Text: NY S08102 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to employment agencies, including application for license; relates to procedures; relates to granting of licenses and enforcement of provisions relating thereto.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2016-12-31 - SIGNED CHAP.519 [S08102 Detail]
Download: New_York-2015-S08102-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8102 IN SENATE June 13, 2016 ___________ Introduced by Sen. KLEIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the general business law, in relation to employment agencies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph b of subdivision 2 of section 173 of the general 2 business law, as added by chapter 632 of the laws of 1975, is amended to 3 read as follows: 4 b. The application for a license shall be accompanied by samples or 5 accurate facsimiles of each and every form which the applicant for a 6 license will require applicants for employment to execute, and such 7 forms must be approved by the commissioner before a license may be 8 issued. The commissioner shall approve any such forms which fairly and 9 clearly represent contractual terms and conditions between the proposed 10 employment agency and applicants for employment, such as are permitted 11 by this article. The commissioner shall determine in his or her 12 discretion, which languages to provide, in addition to English, based on 13 the size of the state population that speaks each language and any other 14 factor the commissioner deems relevant. All forms shall be made avail- 15 able to employment agencies in such a manner as determined by the 16 commissioner. 17 § 2. Subdivisions 1 and 2 of section 174 of the general business law, 18 subdivision 1 as amended by chapter 164 of the laws of 2003, subdivision 19 2 as amended by chapter 632 of the laws of 1975, are amended to read as 20 follows: 21 1. Upon the receipt of an application for a license, the commissioner 22 shall cause the name and address of the applicant, the name under which 23 the employment agency is to be conducted, and the street and number of 24 the place where the agency is to be conducted, to be posted on the 25 commissioner's website, as well as in a conspicuous place in his public 26 office. Such agency shall be used exclusively as an employment agency 27 and for no other purpose, except as hereinafter provided. The commis- 28 sioner shall investigate or cause to be investigated the character and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06774-23-6S. 8102 2 1 responsibility of the applicant and agency manager and shall examine or 2 cause to be examined the premises designated in such application as the 3 place in which it is proposed to conduct such agency. 4 The commissioner shall require all applicants for licenses and agency 5 managers to be fingerprinted. Such fingerprints shall be submitted to 6 the division of criminal justice services for a state criminal history 7 record check, as defined in subdivision one of section three thousand 8 thirty-five of the education law, and may be submitted to the federal 9 bureau of investigation for a national criminal history record check. 10 The criminal history information, if any, received by the department of 11 labor shall be considered in accordance with the provisions of article 12 twenty-three-A of the correction law and subdivisions fifteen and 13 sixteen of section two hundred ninety-six of the executive law. A 14 reasonable time before making a determination on the application pursu- 15 ant to this subdivision, the department shall provide the applicant 16 criminal history information, if any. Where such criminal history infor- 17 mation is provided, the department shall also provide a copy of article 18 twenty-three-A of the correction law, and inform such applicant of his 19 or her right to seek correction of any incorrect information contained 20 in such criminal history information pursuant to the regulations and 21 procedures established by the division of criminal justice services. 22 2. Any person may file, within one week after such application is so 23 posted [in the said office], a written protest against the issuance of 24 such license. Such protest shall be in writing and signed by the person 25 filing the same or his authorized agent or attorney, and shall state 26 reasons why the said license should not be granted. Upon the filing of 27 such protest the commissioner shall appoint a time and place for the 28 hearing of such application, and shall give at least five days' notice 29 of such time and place to the applicant and the person filing such 30 protest. The commissioner may administer oaths, subpoena witnesses and 31 take testimony in respect to the matters contained in such application 32 and protests or complaints of any character for violation of this arti- 33 cle, and may receive evidence in the form of affidavits pertaining to 34 such matters. If it shall appear upon such hearing or from the 35 inspection, examination or investigation made by the commissioner that 36 the applicant or agency manager is not a person of good character or 37 responsibility; or that he or the agency manager has not had at least 38 two years experience as a placement employee, vocational counsellor or 39 in related activities, or other satisfactory business experience which 40 similarly tend to establish the competence of such individual to direct 41 and operate the placement activities of the agency; or that the place 42 where such agency is to be conducted is not a suitable place therefor; 43 or that the applicant has not complied with the provisions of this arti- 44 cle; the said application shall be denied and a license shall not be 45 granted. Each application should be granted or refused within thirty 46 days from the date of its filing. 47 § 3. Section 179 of the general business law, as amended by chapter 48 632 of the laws of 1975, is amended to read as follows: 49 § 179. Registers and other records to be kept. It shall be the duty of 50 every licensed person to keep a register, approved by the commissioner, 51 in which shall be entered, in the English language, the date of the 52 application for employment, the date the applicant started work and the 53 name and address of every applicant from whom a fee or deposit is 54 charged, the amount of the fee or deposit and the service for which it 55 is received or charged. Such licensed person shall also enter in the 56 same or in a separate register, approved by the commissioner, in theS. 8102 3 1 English language, the name and address of every employer from whom a fee 2 is received or charged or to whom the licensed person refers an appli- 3 cant who has paid or is charged a fee, the date of such employer's 4 request or assent that applicants be furnished, the kind of position for 5 which applicants are requested, the names of the applicants sent from 6 whom a fee or deposit is received or charged with the designation of the 7 one employed, the amount of the fee or deposit charged, and the rate of 8 salary or wages agreed upon. It shall also be the duty of every licensed 9 person to keep complete and accurate written records in the English 10 language of all receipts and income received or derived directly from 11 the operation of his employment agency, and to keep records concerning 12 job orders. No such licensed person, his agent or employees, shall make 13 any false entry in such records. It shall be the duty of every licensed 14 person to communicate orally or in writing with at least one of the 15 persons mentioned as references for every applicant for work in private 16 families, or employed in a fiduciary capacity, and the result of such 17 investigation shall be kept on file in such agency for a period of at 18 least three years. Every register and all records kept pursuant to the 19 requirements of this article shall be retained on the premises of the 20 agency concerned for three years following the date on which the last 21 entry thereon was made [except a job order which shall be retained for22one year following the date on which it was received]. 23 § 4. Section 181 of the general business law, as added by chapter 893 24 of the laws of 1958, subdivision 1 as added and subdivision 2 as amended 25 by chapter 632 of the laws of 1975, subdivision 3 as separately amended 26 by chapters 1010 and 1083 of the laws of 1960, and subdivision 4 as 27 amended by chapter 479 of the laws of 1963, is amended to read as 28 follows: 29 § 181. Contracts, statements of terms and conditions, and receipts. It 30 shall be the duty of every employment agency to give to each applicant 31 for employment: 32 1. A true copy of every contract executed between such agency and such 33 applicant, which shall have printed on it or attached to it a statement 34 setting forth in a clear and concise manner the provisions of sections 35 one hundred eighty-five, and one hundred eighty-six of this article. 36 2. [Information as to the name and address of the person to whom the37applicant is to apply for such employment, the kind of service to be38performed, the anticipated rate of wages or compensation, the agency's39fee for the applicant based on such anticipated wages or compensation,40whether such employment is permanent or temporary, the name and address41of the person authorizing the hiring of such applicant, and the cost of42transportation if the services are required outside of the city, town or43village where such agency is located. If the job is a conditionally44fee-paid job, the conditions under which the applicant will be required45to pay a fee shall be clearly set forth in a separate agreement in ten-46point type signed by the job applicant.] (a) Each contract shall 47 include, but not be limited to, the following: information as to the 48 name and address of the person to whom the applicant is to apply for 49 such employment, the name, the address, the mailing address, and the 50 telephone number of the employer; the address or addresses of employ- 51 ment, the kind of service to be performed; the anticipated rate of wages 52 or compensation; the anticipated hours of work per day and number of 53 days to be worked per week; the agency's fee for the applicant based on 54 such anticipated wages or compensation; any provision to the employee, 55 and costs associated with that provision including housing, health 56 insurance, healthcare, sick leave, holidays and retirement benefits;S. 8102 4 1 whether such employment is permanent or temporary, the anticipated peri- 2 od of employment, the name and address of the person authorizing the 3 hiring of such applicant; and the cost of transportation if the services 4 are required outside of the city, town or village where such agency is 5 located. If the job is a conditionally fee-paid job, the conditions 6 under which the applicant will be required to pay a fee shall be clearly 7 set forth in a separate agreement in ten-point type signed by the job 8 applicant. 9 (b) The employment agency shall provide to each applicant, a separate 10 document accompanying each contract summarizing the terms and conditions 11 of the contract in commonly understood terms. This document shall be 12 entitled "terms and conditions" and shall include the language that the 13 document is not a contract and that such document is not legally bind- 14 ing. The commissioner shall promulgate rules and regulations determining 15 what information shall be included in the terms and conditions provided 16 by an agency to an applicant. 17 (c) When a job applicant identifies as his or her primary language a 18 language for which a template is not available from the commissioner, 19 the employment agency shall comply with this subdivision by providing 20 that employee an English-language statement. 21 (d) An employment agency shall not be penalized for errors or omis- 22 sions in the non-English portions of any notice provided by the commis- 23 sioner. 24 3. A receipt for any fee, deposit, consideration, or payment which 25 such agency receives from such applicant, which shall have printed or 26 written on it the name of the applicant, the name and address of the 27 employment agency, the date and amount of such fee, deposit, consider- 28 ation or payment or portion thereof for which the receipt is given, the 29 purpose for which it was paid, and the signature of the person receiving 30 such payment. If the applicant for employment has been recruited from 31 outside the state for domestic or household employment the receipt shall 32 have printed on it, or attached to it, a copy of section one hundred 33 eighty-four of this article. The receipt shall also include, immediate- 34 ly above the place for signature of the person receiving payment, set 35 off in a box and printed in bold capital letters, the following state- 36 ment: "An employment agency may not charge you, the job applicant, a fee 37 before referring you to a job that you accept. If you pay a fee before 38 accepting a job or pay a fee that otherwise violates the law, you may 39 demand a refund, which shall be repaid within seven days". 40 4. The completed original or duplicate-original copy of each such 41 contract [and receipt], statement of terms and conditions, receipts, and 42 any other documents given to the applicant shall be retained by every 43 employment agency for three years following the date on which the 44 contract is executed or the payment is made, and shall be made available 45 for inspection by the commissioner or his duly authorized agent or 46 inspector, upon his request. Notwithstanding the other provisions of 47 such contracts, the monetary consideration to be paid by the applicant 48 shall not exceed the fee ceiling provided in subdivision eight of 49 section one hundred eighty-five of this article. 50 § 5. Subdivisions 1 and 3 of section 185 of the general business law, 51 subdivision 1 as amended by chapter 460 of the laws of 2012 and subdivi- 52 sion 3 as amended by chapter 1010 of the laws of 1960, are amended to 53 read as follows: 54 1. Circumstances permitting fee. An employment agency shall not charge 55 or accept a fee or other consideration unless in accordance with the 56 terms of a written contract with a job applicant[, except:S. 8102 5 1(a) for class "A" and "A-1" employment, and except] and after such 2 agency has been responsible for referring such job applicant to an 3 employer or such employer to a job applicant and where as a result ther- 4 eof such job applicant has been employed by such employer[; and5(b)], except for class "C" employment: [(i)] (a) after an agency has 6 been responsible for referring an artist to an employer or such employer 7 to an artist and where as a result thereof such artist has been employed 8 by such employer; or [(ii)] (b) after an agency represents an artist in 9 the negotiation or renegotiation of an original or pre-existing employ- 10 ment contract and where as a result thereof the artist enters into a 11 negotiated or renegotiated employment contract. For class "C" employment 12 pursuant to this paragraph, an employment agency shall provide an artist 13 with a statement setting forth in a clear and concise manner the 14 provisions of this section and section one hundred eighty-six of this 15 article. 16 The maximum fees provided for herein for all types of placements or 17 employment may be charged to the job applicant and a similar fee may be 18 charged to the employer provided, however, that with regard to place- 19 ments in class "B" employment, a fee of up to one and one-half times the 20 fee charged to the job applicant may be charged to the employer. By 21 agreement with an employment agency, the employer may voluntarily assume 22 payment of the job applicant's fee. The fees charged to employers by any 23 licensed person conducting an employment agency for rendering services 24 in connection with, or for providing employment in classes "A", "A-1" 25 and "B", as hereinafter defined in subdivision four of this section 26 where the applicant is not charged a fee shall be determined by agree- 27 ment between the employer and the employment agency. No fee shall be 28 charged or accepted for the registration of applicants for employees or 29 employment. 30 3. Deposits, advance fees. [Notwithstanding any other provisions of31this section, an] An employment agency [may] shall not require or accept 32 a deposit or advance fee from any applicant [except an applicant for33class "A" or class "A1" employment, and only to the extent of the maxi-34mum fees hereinafter provided. Such deposit or advance fee shall be35offset against any fee charged or accepted when such employment is36obtained. Any excess above the lawful fee shall be returned without37demand therefor, immediately after the employment agency has been noti-38fied that such employment has been obtained; and all of such deposit or39advance fee shall be returned immediately upon demand therefor, if at40the time of the demand such employment has not been obtained]. 41 § 6. Subdivision 2 of section 186 of the general business law, as 42 amended by chapter 1010 of the laws of 1960, is amended to read as 43 follows: 44 2. Failure to report: If a job applicant accepts employment and there- 45 after fails to report for work, the gross fee charged to such applicant 46 shall not exceed twenty-five per cent of the maximum fee allowed by 47 section one hundred eighty-five of this article[, provided however, if48the applicant remains with his same employer, the fee shall not exceed49fifty per cent]. If a job applicant accepts employment and fails to 50 report for work, no fee shall be charged to the employer. 51 § 7. Subdivision 3 of section 187 of the general business law, as 52 added by chapter 893 of the laws of 1958, is amended to read a follows: 53 (3) Advertise in newspapers or otherwise, or use letterheads or 54 receipts or other written or printed matter, unless such advertising or 55 other matter contains the name and address of the employment agency 56 [and], the word "agency" and the agency's license number.S. 8102 6 1 § 8. Section 188 of the general business law, as amended by chapter 2 632 of the laws of 1975, is amended to read as follows: 3 § 188. Copies of law to be posted. 1. Every licensed person shall post 4 in a conspicuous place in the main room of such agency sections one 5 hundred seventy-eight, [one hundred eighty,] one hundred eighty-one, one 6 hundred eighty-five, and one hundred eighty-six, of this article[, which7shall be printed in large type in languages in which persons commonly8doing business with such office can understand]. Such poster shall also 9 contain the name and address of the commissioner charged with the 10 enforcement of this article in the place where the agency is located. 11 2. The commissioner, in conjunction with the director of the office 12 for new Americans, shall develop, establish and implement a public 13 awareness campaign regarding the rights of job seekers. Such public 14 awareness campaign shall be made available to the public by any means 15 deemed appropriate by the commissioner and the director of the office 16 for new Americans. Any materials developed and disseminated to job seek- 17 ers according to this subdivision must also be distributed to licensed 18 employment agencies. 19 § 9. Section 189 of the general business law, as amended by chapter 20 479 of the laws of 1963, subdivisions 1 and 2 as amended by chapter 721 21 of the laws of 2004, subdivisions 4 and 5 as amended by chapter 632 of 22 the laws of 1975, is amended to read as follows: 23 § 189. Enforcement of provisions of this article. 1. This article, 24 article nineteen-B of the labor law and sections 37.01, 37.03 and 37.05 25 of the arts and cultural affairs law shall be enforced by the commis- 26 sioner of labor, except that in the city of New York this article and 27 such sections shall be enforced by the commissioner of consumer affairs 28 of such city. In addition to the powers of the commissioner, the attor- 29 ney general may enforce the provisions of this article to the extent 30 permitted under section sixty-three of the executive law. 31 2. To effectuate the purposes of this article, article nineteen-B of 32 the labor law and sections 37.01, 37.03 and 37.05 of the arts and 33 cultural affairs law, the commissioner or any duly authorized agent or 34 inspector designated by such commissioner, shall have authority to 35 inspect the premises, registers, contract forms, completed contracts, 36 statements of terms and conditions, receipt books, application forms, 37 referral forms, reference forms, reference reports and financial records 38 of fees charged and refunds made of each employment agency, and any 39 other record that the employment agency is required to maintain pursuant 40 to this article, which are essential to the operation of such agency, 41 and of each applicant for an employment agency license, as frequently as 42 necessary to ensure compliance with this article and such sections[; but43in]. In no event shall any employment agency be inspected less frequent- 44 ly than once every eighteen months. Inspections may consist of in-per- 45 son visits to employment agencies. The commissioner shall also have 46 authority to subpoena records and witnesses or otherwise to conduct 47 investigations of any employer or other person where he or she has 48 reasonable grounds for believing that such employer or person is violat- 49 ing or has conspired or is conspiring with an employment agency to 50 violate this article or such sections. 51 3. To effectuate the purposes of this article, the commissioner may 52 make reasonable administrative rules within the standards set in this 53 article. Before such rules shall be issued, the commissioner shall 54 conduct a public hearing, giving due notice thereof to all interested 55 parties. No rule shall become effective until fifteen days after it has 56 been filed in the office of the department of state, if it is a rule ofS. 8102 7 1 the industrial commissioner, or in the office of the clerk of the city 2 of New York, if it is a rule of the commissioner of licenses of such 3 city, and copies thereof shall be furnished to all employment agencies 4 affected at least fifteen days prior to the effective date of such rule. 5 4. Complaints against any such licensed or unlicensed person [shall] 6 may be made orally or in writing to the commissioner, or be sent in an 7 affidavit form without appearing in person, and may be made by recog- 8 nized employment agencies, trade associations, or others. The commis- 9 sioner may hold a hearing on a complaint with the powers provided by 10 section one hundred seventy-four of this article. If a hearing is held, 11 reasonable notice thereof, not less than five days, shall be given in 12 writing to said [licensed] person by serving upon the [licensed] person 13 either personally, by mail, or by leaving the same with the person in 14 charge of his office, a concise statement of the facts constituting the 15 complaint, and the hearing shall commence before the commissioner with 16 reasonable speed but in no event later than two weeks from the date of 17 the filing of the complaint. The commissioner when investigating any 18 matters pertaining to the granting, issuing, transferring, renewing, 19 revoking, suspending or cancelling of any license is authorized in his 20 discretion to take such testimony as may be necessary on which to base 21 official action. When taking such testimony he may subpoena witnesses 22 and also direct the production before him of necessary and material 23 books and papers. A daily calendar of all hearings shall be kept by the 24 commissioner and shall be posted in a conspicuous place in his public 25 office for at least one day before the date of such hearings. The 26 commissioner shall render his decision within thirty days from the time 27 the matter is finally submitted to him. The commissioner shall keep a 28 record of all such complaints and hearings. The office of new Americans 29 shall, pursuant to section ninety-four-b of the executive law, receive 30 complaints, attempt to mediate such complaints, and where appropriate 31 refer such complaints to the attorney general or other federal, state or 32 local agency authorized by law to take action on such complaint. 33 5. [Following such hearing if it has been shown] Upon a finding that 34 the licensed person or his agent, employee or anyone acting on his 35 behalf is guilty of violating any provision of this article or is not a 36 person of good character and responsibility, the commissioner may 37 suspend or revoke the license of such licensed person [and/or levy a38fine against such licensed person for each violation not to exceed five39hundred dollars]. Any employment agency found to have violated any 40 provision of this article shall be subject, for the first offense, to a 41 civil penalty not to exceed one thousand dollars per violation, and, for 42 each subsequent offense within six years of such previous offense, to a 43 civil penalty, not to exceed five thousand dollars per violation. When 44 it is determined that there has been a violation of this article by an 45 employment agency, the commissioner shall provide the employment agency 46 with a specific time period for such employment agency to cure or 47 correct such violation or take other ameliorative action as directed by 48 the commissioner, the successful completion of which shall prevent the 49 imposition of penalties on the employment agency for such violation. 50 Whenever such commissioner shall suspend or revoke the license of any 51 employment agency, or shall levy a fine against [such] any agency, said 52 determination shall be subject to judicial review in proceedings brought 53 pursuant to article seventy-eight of the civil practice law and rules. 54 Whenever [such] an employment agency's license is revoked, another 55 license or agency manager permit shall not be issued within three years 56 from the date of such revocation to said licensed person or his agencyS. 8102 8 1 manager or to any person with whom the licensee has been associated in 2 the business of furnishing employment or engagements. Deputy commission- 3 ers, or other officials designated to act on behalf of the commissioner, 4 may conduct hearings and act upon applications for licenses, and revoke 5 or suspend such licenses, or levy fines against an employment agency. 6 6. If any provisions of this article or the application thereof to 7 any person or circumstances is held unconstitutional, the remainder of 8 the article and the application of that provision to other persons and 9 circumstances shall not be affected thereby. 10 § 10. Section 190 of the general business law, as amended by chapter 11 632 of the laws of 1975, is amended to read as follows: 12 § 190. Penalties for violations. Any person who violates and the offi- 13 cers of a corporation and stockholders holding ten percent or more of 14 the stock of a corporation which is not publicly traded, who knowingly 15 permit the corporation to violate sections one hundred seventy-two, one 16 hundred seventy-three, one hundred seventy-six, one hundred eighty-four, 17 one hundred eighty-four-a, one hundred eighty-five, one hundred eighty- 18 five-a, one hundred eighty-six, or one hundred eighty-seven of this 19 article shall be guilty of a misdemeanor and upon conviction shall be 20 subject to a fine not to exceed [one thousand] two thousand five hundred 21 dollars per violation, or imprisonment for not more than one year, or 22 both, by any court of competent jurisdiction. The violation of any other 23 provision of this article shall be punishable by a fine not to exceed 24 [one] five hundred dollars or imprisonment for not more than thirty 25 days. Criminal proceedings based upon violations of these sections shall 26 be instituted by the commissioner and may be instituted by any persons 27 aggrieved by such violations. 28 § 11. This act shall take effect immediately.