NY State Senate Bill 2013-S5866A

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to consumer protection
Jun 20, 2013	print number 5866a
Jun 20, 2013	amend and recommit to rules
Jun 18, 2013	referred to rules

Bill Amendments

Original

A (Active)

2013-S5866 - Details

See Assembly Version of this Bill:: A7638
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §185, Gen Bus L
Versions Introduced in 2015-2016 Legislative Session:: S300, A5011

2013-S5866 - Summary

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.

2013-S5866 - Sponsor Memo

                                BILL NUMBER:S5866

TITLE OF BILL:  An act to amend the general business law, in relation
to fees charged by employment agencies for class "A" or "A-1"
employment

PURPOSE OR GENERAL IDEA OF BILL:

This bill seeks to prevent fraud by employment agencies by banning
them from collecting applicant fees for job placement of class "A" and
"A-I" workers without a written contract between the applicant and the
agency. It also requires refunds for those applicants who paid fees
without contract and were not placed.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 alters the law to ban employment agencies from charging
applicant fees without a written contract between the applicant and
the agency, unless it is after the agency already successfully placed
the applicant. It also requires agencies that collected fees without
contacts prior to October 1, 2013 to repay those fees to the applicant
by November 1, 2013 if he or she was not placed in a job or if the fee
was not applied to the applicant's account for services rendered.

Section 2 bans employment agencies from requiring or accepting a
deposit or advance fee from any applicant, except in the case of class

A or A-1 employees, who would see the ultimate fee offset once they
are provided with employment. Agencies that collected advance fees and
deposits with- cut contracts prior to October 1, 2013 must them to the
applicant by November 1, 2013 if he or she was not placed in a job or
if the fee was not applied to the applicant's account for services
rendered.

JUSTIFICATION:

Fraud amongst employment agencies is widespread, especially those
serving immigrant communities. According to a report by New Immigrant
Community Empowerment, 2 out of 3 applicants they surveyed were not
given a contract. This legislation ensures that these agencies aren't
taking advantage of people already hindered by unemployment, and are
held to task for the services they advertise.

PRIOR LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

July 1, 2013

2013-S5866 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5866

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 18, 2013
                               ___________

Introduced by Sen. ESPAILLAT -- 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 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:

  Section 1. Subdivision 1 of section 185 of the general  business  law,
as  amended  by  chapter  460  of the laws of 2012, is amended and a new
subdivision 1-a is added to read as follows:
  1. Circumstances permitting fee. An employment agency shall not charge
or accept a fee or other consideration unless  in  accordance  with  the
terms of a written contract with a job applicant[, except:
  (a)  for  class  "A"  and "A-1" employment, and except] AND after such
agency has been responsible for  referring  such  job  applicant  to  an
employer or such employer to a job applicant and where as a result ther-
eof such job applicant has been employed by such employer[; and
  (b)],  EXCEPT  for class "C" employment: [(i)] (A) after an agency has
been responsible for referring an artist to an employer or such employer
to an artist and where as a result thereof such artist has been employed
by such employer; or [(ii)] (B) after an agency represents an artist  in
the  negotiation or renegotiation of an original or pre-existing employ-
ment contract and where as a result thereof the  artist  enters  into  a
negotiated or renegotiated employment contract. For class "C" employment
pursuant to this paragraph, an employment agency shall provide an artist
with  a  statement  setting  forth  in  a  clear  and concise manner the
provisions of this section and section one hundred  eighty-six  of  this
article.    The maximum fees provided for herein for all types of place-
ments or employment may be charged to the job applicant  and  a  similar
fee  may  be charged to the employer provided, however, that with regard
to placements in class "B" employment, a fee of up to one  and  one-half
times the fee charged to the job applicant may be charged to the employ-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04101-04-3

S. 5866                             2

er. By agreement with an employment agency, the employer may voluntarily
assume payment of the job applicant's fee. The fees charged to employers
by  any  licensed  person  conducting an employment agency for rendering
services in connection with, or for providing employment in classes "A",
"A-1"  and  "B",  as  hereinafter  defined  in  subdivision four of this
section where the applicant is not charged a fee shall be determined  by
agreement  between the employer and the employment agency.  No fee shall
be charged or accepted for the registration of applicants for  employees
or employment.
  1-A.  FEE REFUND.   AN EMPLOYMENT AGENCY WHO HAS CHARGED OR ACCEPTED A
FEE OR OTHER CONSIDERATION FOR CLASSES "A" AND "A-1" EMPLOYMENT  WITHOUT
A  CONTRACT  PRIOR TO JULY FIRST, TWO THOUSAND THIRTEEN SHALL REFUND THE
FULL AMOUNT TO THE JOB APPLICANT BY AUGUST FIRST, TWO THOUSAND  THIRTEEN
IF:  (I)  SUCH  FEE  OR  CONSIDERATION DID NOT LEAD TO THE JOB APPLICANT
OBTAINING EMPLOYMENT THROUGH THE EMPLOYMENT AGENCY; OR (II) THE  FEE  OR
CONSIDERATION  WAS  NOT  APPLIED  TO  THE  JOB  APPLICANT'S  ACCOUNT FOR
SERVICES RENDERED BY THE EMPLOYMENT AGENCY.
  S 2. Subdivision 3 of section 185 of  the  general  business  law,  as
amended  by  chapter  1010  of  the  laws of 1960, is amended to read as
follows:
  3. Deposits, advance fees. Notwithstanding  any  other  provisions  of
this  section,  an employment agency [may] SHALL not require OR ACCEPT a
deposit or advance fee from any applicant [except an applicant for class
"A" or class "A1" employment, and only to the extent of the maximum fees
hereinafter provided. Such  deposit  or  advance  fee  shall  be  offset
against  any  fee  charged or accepted when such employment is obtained.
Any excess above the lawful fee shall be returned without demand  there-
for, immediately after the employment agency has been notified that such
employment  has  been  obtained;  and all of such deposit or advance fee
shall be returned immediately upon demand therefor, if at  the  time  of
the  demand  such  employment  has  not  been  obtained]. ANY DEPOSIT OR
ADVANCE FEE COLLECTED BY AN EMPLOYMENT AGENCY PRIOR TO JULY  FIRST,  TWO
THOUSAND THIRTEEN MUST BE REFUNDED TO THE APPLICANT BY AUGUST FIRST, TWO
THOUSAND  THIRTEEN  IF:  (I) SUCH DEPOSIT OR ADVANCE FEE DID NOT LEAD TO
THE JOB APPLICANT OBTAINING EMPLOYMENT THROUGH THE EMPLOYMENT AGENCY  OR
(II)  THE  DEPOSIT OR ADVANCE FEE WAS NOT APPLIED TO THE JOB APPLICANT'S
ACCOUNT FOR SERVICES RENDERED BY THE EMPLOYMENT AGENCY.
  S 3. This act shall take effect July 1, 2013; provided, however,  that
if  this  act  shall have become a law after July 1, 2013 this act shall
take effect immediately and shall be deemed to have been in  full  force
and effect on and after July 1, 2013.

2013-S5866A (ACTIVE) - Details

See Assembly Version of this Bill:: A7638
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §185, Gen Bus L
Versions Introduced in 2015-2016 Legislative Session:: S300, A5011

2013-S5866A (ACTIVE) - Summary

2013-S5866A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5866A

TITLE OF BILL:  An act to amend the general business law, in relation
to fees charged by employment agencies for class "A" or "A-1"
employment

PURPOSE OR GENERAL IDEA OF BILL:

This bill seeks to prevent fraud by employment agencies by banning
them from collecting applicant fees for job placement of class "A" and
"A-I" workers without a written contract between the applicant and the
agency. It also requires refunds for those applicants who paid fees
without contract and were not placed.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 alters the law to ban employment agencies from charging
applicant fees without a written contract between the applicant and
the agency, unless it is after the agency already successfully placed
the applicant. It also requires agencies that collected fees without
contacts prior to October 1, 2013 to repay those fees to the applicant
by November 1, 2013 if he or she was not placed in a job or if the fee
was not applied to the applicant's account for services rendered.

Section 2 bans employment agencies from requiring or accepting a
deposit or advance fee from any applicant, except in the case of class

A or A-1 employees, who would see the ultimate fee offset once they
are provided with employment. Agencies that collected advance fees and
deposits without contracts prior to October 1, 2013 must them to the
applicant by November 1, 2013 if he or she was not placed in a job or
if the fee was not applied to the applicant's account for services
rendered.

JUSTIFICATION:

Fraud amongst employment agencies is widespread, especially those
serving immigrant communities. According to a report by New Immigrant
Community Empowerment, 2 out of 3 applicants they surveyed were not
given a contract_ This legislation ensures that these agencies aren't
taking advantage of people already hindered by unemployment, and are
held to task for the services they advertise.

PRIOR LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

July 1, 2013

2013-S5866A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5866--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              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:

  Section  1.  Subdivision 1 of section 185 of the general business law,
as amended by chapter 460 of the laws of 2012,  is  amended  and  a  new
subdivision 1-a is added to read as follows:
  1. Circumstances permitting fee. An employment agency shall not charge
or  accept  a  fee  or other consideration unless in accordance with the
terms of a written contract with a job applicant[, except:
  (a) for class "A" and "A-1" employment, and  except]  AND  after  such
agency  has  been  responsible  for  referring  such job applicant to an
employer or such employer to a job applicant and where as a result ther-
eof such job applicant has been employed by such employer[; and
  (b)], EXCEPT for class "C" employment: [(i)] (A) after an  agency  has
been responsible for referring an artist to an employer or such employer
to an artist and where as a result thereof such artist has been employed
by  such employer; or [(ii)] (B) after an agency represents an artist in
the negotiation or renegotiation of an original or pre-existing  employ-
ment  contract  and  where  as a result thereof the artist enters into a
negotiated or renegotiated employment contract. For class "C" employment
pursuant to this paragraph, an employment agency shall provide an artist
with a statement setting  forth  in  a  clear  and  concise  manner  the
provisions  of  this  section and section one hundred eighty-six of this
article.  The maximum fees provided for herein for all types  of  place-
ments  or  employment  may be charged to the job applicant and a similar
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

to  placements  in class "B" employment, a fee of up to one and one-half
times the fee charged to the job applicant may be charged to the employ-
er. By agreement with an employment agency, the employer may voluntarily
assume payment of the job applicant's fee. The fees charged to employers
by  any  licensed  person  conducting an employment agency for rendering
services in connection with, or for providing employment in classes "A",
"A-1" and "B", as  hereinafter  defined  in  subdivision  four  of  this
section  where the applicant is not charged a fee shall be determined by
agreement between the employer and the employment agency.  No fee  shall
be  charged or accepted for the registration of applicants for employees
or employment.
  1-A. FEE REFUND.  AN EMPLOYMENT AGENCY WHO HAS CHARGED OR  ACCEPTED  A
FEE  OR OTHER CONSIDERATION FOR CLASSES "A" AND "A-1" EMPLOYMENT WITHOUT
A CONTRACT PRIOR TO OCTOBER FIRST, TWO THOUSAND  THIRTEEN  SHALL  REFUND
THE  FULL  AMOUNT  TO  THE JOB APPLICANT BY NOVEMBER FIRST, TWO THOUSAND
THIRTEEN IF: (I) SUCH FEE OR CONSIDERATION  DID  NOT  LEAD  TO  THE  JOB
APPLICANT  OBTAINING  EMPLOYMENT  THROUGH THE EMPLOYMENT AGENCY; OR (II)
THE FEE OR CONSIDERATION WAS NOT APPLIED TO THE JOB APPLICANT'S  ACCOUNT
FOR SERVICES RENDERED BY THE EMPLOYMENT AGENCY.
  S  2.  Subdivision  3  of  section 185 of the general business law, as
amended by chapter 1010 of the laws of  1960,  is  amended  to  read  as
follows:
  3.  Deposits,  advance  fees.  Notwithstanding any other provisions of
this section, an employment agency [may] SHALL not require OR  ACCEPT  a
deposit or advance fee from any applicant [except an applicant for class
"A" or class "A1" employment, and only to the extent of the maximum fees
hereinafter  provided.  Such  deposit  or  advance  fee  shall be offset
against any fee charged or accepted when such  employment  is  obtained.
Any  excess above the lawful fee shall be returned without demand there-
for, immediately after the employment agency has been notified that such
employment has been obtained; and all of such  deposit  or  advance  fee
shall  be  returned  immediately upon demand therefor, if at the time of
the demand such employment  has  not  been  obtained].  ANY  DEPOSIT  OR
ADVANCE  FEE  COLLECTED  BY AN EMPLOYMENT AGENCY PRIOR TO OCTOBER FIRST,
TWO THOUSAND THIRTEEN MUST BE REFUNDED  TO  THE  APPLICANT  BY  NOVEMBER
FIRST, TWO THOUSAND THIRTEEN IF: (I) SUCH DEPOSIT OR ADVANCE FEE DID NOT
LEAD  TO  THE  JOB APPLICANT OBTAINING EMPLOYMENT THROUGH THE EMPLOYMENT
AGENCY OR (II) THE DEPOSIT OR ADVANCE FEE WAS NOT  APPLIED  TO  THE  JOB
APPLICANT'S ACCOUNT FOR SERVICES RENDERED BY THE EMPLOYMENT AGENCY.
  S 3. This act shall take effect October 1, 2013.

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Senate Bill S5866A

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

2013-S5866 - Details

2013-S5866 - Summary

2013-S5866 - Sponsor Memo

2013-S5866 - Bill Text download pdf

2013-S5866A (ACTIVE) - Details

2013-S5866A (ACTIVE) - Summary

2013-S5866A (ACTIVE) - Sponsor Memo

2013-S5866A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5866A

Share this bill

Sponsored By

Adriano Espaillat

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

2013-S5866 - Details

2013-S5866 - Summary

2013-S5866 - Sponsor Memo

2013-S5866 - Bill Text download pdf

2013-S5866A (ACTIVE) - Details

2013-S5866A (ACTIVE) - Summary

2013-S5866A (ACTIVE) - Sponsor Memo

2013-S5866A (ACTIVE) - Bill Text download pdf

Comments