Legislation

Search OpenLegislation Statutes
This entry was published on 2017-01-06
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 185
Fees
General Business (GBS) CHAPTER 20, ARTICLE 11
§ 185. Fees. 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 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
thereof such job applicant has been employed by such employer, except
for class "C" employment: (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 (b) after an agency represents an artist in the negotiation
or renegotiation of an original or pre-existing employment 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 placements 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
employer. 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.

2. Size of fee; payment schedule. The gross fee charged to the job
applicant and the gross fee charged to the employer each shall not
exceed the amounts enumerated in the schedules set forth in this
section, for any single employment or engagement, except as hereinabove
provided; and such fees shall be subject to the provisions of section
one hundred eighty-six of this article. Except as otherwise provided
herein, and except for class "C" employment, an employment agency shall
not require an applicant while employed in the continental United
States, and paid weekly to pay any fee at a rate greater than in ten
equal weekly installments each of which shall be payable at the end of
each of the first ten weeks of employment, or if paid less frequently,
in five equal installments, each of which shall be payable at the end of
the first five pay periods following his employment, or within a period
of ten weeks, whichever period is longer. An employer's fee shall be due
and payable at the time the applicant begins employment, unless
otherwise determined by agreement between the employer and the agency.

3. Deposits, advance fees. An employment agency shall not require or
accept a deposit or advance fee from any applicant.

4. Types of employment. For the purpose of placing a ceiling over the
fees charged by persons conducting employment agencies, types of
employment shall be classified as follows:

Class "A"--domestics, household employees, unskilled or untrained
manual workers and laborers, including agricultural workers;

Class "A1"--non-professional trained or skilled industrial workers or
mechanics;

Class "B"--commercial, clerical, executive, administrative and
professional employment, all employment outside the continental United
States, and all other employment not included in classes "A", "A1", "C"
and "D";

Class "C"--theatrical engagements;

Class "D"--nursing engagements as defined in article one hundred
thirty-nine of the education law.

5. Fee ceiling: For a placement in class "A" employment the gross fee,
including the deposit if any, shall not exceed, in percentage of the
first full month's salary or wages, the following:
where no meals or lodging are provided ............................ 10 %
where one meal per working day is provided ........................ 12 %
where two meals per working day are provided ...................... 14 %
where three meals and lodging per working day are
provided .......................................................... 18 %
Where all parties to the employment agreement understand or agree at the
time the employment is entered into that it shall be for a period
shorter than one month, the gross fee shall not exceed ten per cent,
twelve per cent, fourteen per cent or eighteen per cent respectively of
the salary or wages actually paid.

6. Fee ceiling: For a placement in Class "A1" employment the gross fee
shall not exceed one week's wages where all parties to the employment
agreement understand or agree at the time the employment is entered into
that it shall be for a period for ten weeks or more. Where all parties
to the employment contract agree and understand at the time the
employment contract is entered into that it shall be for a period
shorter than ten weeks, the gross fee shall not exceed ten per cent of
the wages or salary actually received.

7. Fee ceiling: For a placement in Class "B" employment the gross fee
shall not exceed, in percentage of the first full month's salary or
wages, the following:

where such first full month's salary or wages is
less than $750 .................................................... 25 %
at least $ 750 but less than $ 950 ................................ 35 %
at least $ 950 but less than $1150 ................................ 40 %
at least $1150 but less than $1350 ................................ 45 %
at least $1350 but less than $1500 ................................ 50 %
at least $1500 but less than $1650 ................................ 55 %
at least $1650 or more ............................................ 60 %
Provided however, that where the placement is for employment in which
the applicant will be paid on a straight commission basis or on the
basis of a drawing account plus commissions, the gross fee shall be
based on percentages in the above schedule applied to an amount
equivalent to one-twelfth of the estimated first year's earnings, as
estimated by the employer.

Where all parties to the employment contract agree and understand at
the time the employment contract is entered into that it shall be for a
period shorter than four months the gross fee shall not exceed fifty
percent of the fee prescribed in the schedule in this subdivision or ten
percent of the wages or salary actually received, whichever is less.

8. Fee ceiling: For a placement in class "C" employment the gross fee
shall not exceed, for a single engagement, ten per cent of the
compensation payable to the applicant, except that for employment or
engagements for orchestras and for employment or engagements in the
opera and concert fields such fees shall not exceed twenty per cent of
the compensation.

9. Fee ceiling: For a placement in class "D" employment the gross fee
shall not exceed, for a single engagement, the following:

(1) for private nursing duty, five per cent of the salary or wages
received each week through the first ten weeks of that engagement only,
and such fee shall be due and payable at the end of each such week;

(2) for any other nursing duty, the amount of the first week's salary
or wages unless the first year's computed salary or wages to be derived
for at least one year's employment is twenty-five hundred dollars or
more, in which event the gross fee shall not exceed, in percentage of
such salary or wages, the following:

where such first year's salary or wages is
at least $2500 but less than $3000 ............................. 2 1/2 %
at least $3000 but less than $3500 ............................. 3 %
at least $3500 but less than $4000 ............................. 3 1/2 %
at least $4000 but less than $4500 ............................. 4 %
at least $4500 but less than $5000 ............................. 4 1/2 %
$5000 or more .................................................. 5 %

10. Notwithstanding any other provision of law to the contrary, no fee
may be charged or collected for services rendered by an employment
agency not licensed pursuant to section one hundred seventy-two of this
article at the time such services were rendered. In an action to collect
a fee, the court shall void all or any part of an agreement or contract
with an employment agency that did not have a valid license at the time
the contract was entered into or services were rendered; however, such
contract shall not be considered void if a court finds a good faith
effort by an employment agency to maintain its license despite clerical
error or delay by the department of labor or the New York city
department of consumer affairs.