Relates to employment agencies, including application for license; procedures; granting of licenses and enforcement of provisions relating thereto

Summary of specific provisions

Section 1- amends Section 171 of the general business law to add a new subdivision 12 to require a "bona fide order", as defined in the bill, be maintained on a 45 day basis between an employer and an employment agency that clearly defines the details of the position available and other criteria.

Section 2- Paragraph b of subdivision 2 of section 173 of the general business law is amended to include a contract, statement of terms and conditions, and receipt be approved by the commissioner before a license is granted.

Section 3- Subdivisions 1 and 2 of section 174 of the general business law are amended to require that certain license information be posted on the commissioner's website and that any criminal history be disclosed to the applicant.

Section 4- Section 179 of the general business law is amended to add bona fide order to documents that agencies are required to keep on file.

Section 5- Section 181 of the general business law is amended to require statements of terms and conditions be given to each applicant for employment, clarifies required information to be included in contracts with employment applicants, requires the commissioner to prepare templates that comply with those requirements in dual languages, requires contracts and receipts be kept on file for three years, and provide that receipts must state that job applicants cannot be charged a fee prior to being referred to a job they accept.

Section 6- Subdivisions 1 and 3 of section 185 of the general business law are amended and a new subdivision 1-a is added to change advance fee charges and to require reimbursement of past advanced fees charged to class A and A-1 workers who were not hired by the agency.

Section 7- Subdivision 2 of section 186 of the general business law is amended to cap fees when a job applicant fails to report to work.

Section 8- Subdivision 3 of section 187 of the general business law is amended to require employment agencies include their license number in any advertisements.

Section 9- Section 189 of the general business law is amended to grant the commissioner and the attorney general the power to enforce this article, explains what inspections can be made to ensure compliance with this article, allows charges to be made against licensed and unlicensed agencies. This section also explains the penalties for violating the article and allows for aggrieved persons to pursue civil action.

Section 10- Section 190 of the general business law is amended to explain the criminal penalties for violating the article.

Section 11- Adds a new section 195 to the general business law to provide job applicants protection from retaliation from employment agencies.

Justification

This legislation brings existing provisions regulating employment agencies up-to-date and strengthens protections for job seekers. In order to accomplish these goals, the legislation: 1) amends the General Business Law to more effectively deter employment agency abuse; 2) facilitates enforcement of the General Business Law; 3) empowers job seekers to hold employment agencies accountable; and 4) improves the job market for low-wage workers.

The current employment agency laws offer insufficient protection for job seekers, especially low-wage workers. For example, the current law contains an advance fee exception that exposes the most vulnerable job seekers to employment agency fraud. Under Section 185 of Article 11 of the General Business Law, employment agencies may charge fees to low-wage workers (i.e. domestic workers and manual workers) before placing workers in a job. All other classes of worker pay agencies only after securing a job. Agencies routinely profit from the advance fee exception by accepting fees from low-wage workers and failing to provide a service in return. In addition, inadequate penalties under the current General Business Law fail to deter employment agency abuse. Article 11 allows the New York City Department of Consumer Affairs or the New York State Department of Labor to impose a penalty of no more than $500 for each violation of the employment agency laws. This small and optional penalty has proved ineffective.

The existing General Business Law also makes it exceedingly difficult for job seekers to hold employment agencies accountable. Job seekers cannot defend their rights if they do not understand them. This legislation requires employment agencies to provide basic and important information to job seekers about their rights. In addition, under the current law, job seekers cannot hold employment agencies accountable through civil actions. Workers must rely on overburdened government agencies to address all abuse. This legislation will permit job seekers to bring civil actions against employment agencies that violate the law.

A recent study in Queens, New York conducted by New Immigrant Community Empowerment (NICE) and the Urban Justice Center (UJC) found that: 1) 81% of survey respondents who did not find a job through an agency were still charged a fee (average, $122); 2) Agencies do not inform job seekers that fees are refundable and, in violation of existing provisions, refuse to refund excess fees; 3) One third of survey respondents were offered jobs paying below the state minimum wage by agencies in violation of the New York Labor Law and the General Business Law; and 4) Job seekers who receive written contracts from agencies are more likely to secure jobs and less likely to experience fraud. However, among immigrant job seekers surveyed, two thirds were not given a written contract.

Employment agency abuse affects job seekers throughout the entire state. There exist approximately 300 licensed employment agencies in

New York City. Approximately 100 licensed employment agencies operate outside of the five boroughs, with many of those concentrated on Long Island and in Westchester. However, as the study cited above noted, many more unlicensed agencies operate throughout the state. It is time to provide adequate and meaningful protections to low-wage workers as they look for work across the state of New York.

Prior legislative history

New bill.

Fiscal implications

To be determined.

Effective date

Immediately