Changes fine for violations by employment agencies to up to $500 a day and a class A misdemeanor for 3 or more violations in 5 years

BILL NUMBER:S23

Title of bill

An act to amend the general business law, in relation to the fine imposed for certain violations relating to employment agencies

Purpose

Changes fines for violations by employment agencies to up to $500 a day and establishes a class A misdemeanor for three or more violations in five years.

Summary of provisions

Section 1. Amends the General Business Law, section 190. Establishes a class A misdemeanor for any person who has been convicted of three or more violations of this article within any period of five years.

Section 2. Amends the General Business Law, section 193. Increases fines up to $500 per day for any person who has been convicted of three or more violations of this article within any period of five years.

Section 3. Effective Date

Existing law

General Business Law; Article 11, Employment Agencies; Sections 190, Penalties for Violations and 193, Penalties for Violation; the penalty for violating section 190 is punishable by a fine not to exceed $100 or imprisonment for not more than thirty days; the penalty for violating section 193 is a fine not to exceed $1,000 or imprisonment for not more than one year or both.

Justification

Throughout New York City, especially in low-income, minority neighborhoods, people looking for work have become victims of fraudulent and unlicensed employment agencies. The employment agencies are illegally collecting from $100 to $150 fees up front and not providing legitimate job leads. Job seekers are sent out to pursue a job that does not exist and upon return are denied a refund. Under the current General Business Law the penalties for a violation is a $100 a day which is an affordable cost of doing business when unsuspected customers are paying $100 or more per person for job leads. This legislation will increase the fines to $500 a day and if any person has been convicted of three or more violations within any period of five years, shall be guilty of a class A misdemeanor.

Legislative history

2012: S.499 - Referred to Consumer Protection 2011: S.499 - Reported and Committed to Codes 2009-10: S.5583 - Referred to Codes/A.7587 - Enacting Clause Stricken/A.10864 - Held for Consideration in Codes

Fiscal implications

None.

Effective date

This act shall take effect on the thirtieth day after it shall have become a law.