Stricken language would be deleted from and underlined language would be added to present law.
*LGL103* 02/21/2025 3:52:17 PM LGL103
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 278 3
4
By: Senator J. English 5
By: Representative S. Meeks 6
7
For An Act To Be Entitled 8
AN ACT TO REPEAL THE STATUTES CONCERNING THE 9
OCCUPATIONAL AUTHORIZATION AND LICENSURE OF PRIVATE 10
EMPLOYMENT AGENCIES, EMPLOYMENT COUNSELORS, AND 11
EMPLOYMENT AGENCY MANAGERS; TO REPEAL THE ARKANSAS 12
PRIVATE EMPLOYMENT AGENCY ACT OF 1975; AND FOR OTHER 13
PURPOSES. 14
15
16
Subtitle 17
TO REPEAL THE STATUTES CONCERNING THE 18
OCCUPATIONAL AUTHORIZATION AND LICENSURE 19
OF CERTAIN EMPLOYMENT OFFICES AND 20
AGENCIES; AND TO REPEAL THE ARKANSAS 21
PRIVATE EMPLOYMENT AGENCY ACT OF 1975. 22
23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
25
SECTION 1. Arkansas Code Title 11, Chapter 11, is repealed. 26
27
CHAPTER 11 — EMPLOYMENT OFFICES AND AGENCIES 28
29
Subchapter 1 — General Provisions 30
31
11-11-101. Recruitment of labor by foreign labor agents. 32
(a) No foreign labor agent, labor bureau or employment agency, or any 33
other person shall enter this state and attempt to hire, induce, or take from 34
this state any labor, singularly or in groups, for any purpose, whether or 35
not a fee or charge is extracted from the worker, without first applying to 36 SB278
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the Director of the Division of Labor for a license to do so and filing with 1
the director: 2
(1) A statement as to where the labor is to be taken, for what 3
purpose, for what length of time, and whether transportation is to be paid to 4
and from the destination, if temporary; 5
(2) A statement of the financial standing of the employer 6
desiring the labor; 7
(3) An affidavit of authority to represent the employer in this 8
state; and 9
(4) Whatever other information the director may require. 10
(b)(1) The director shall determine whether the person desiring the 11
labor from this state is a labor agent, labor bureau, or employment agency 12
and, if so, whether the applicant is qualified to be licensed under the laws 13
of this state and according to the provisions of this section. 14
(2) The director, after the investigation, may refuse to license 15
or register the applicant until the applicant has complied with the 16
provisions of this section. 17
(3) The applicant shall, in the event of unfavorable action by 18
the director, have the right of appeal to the proper court. 19
(c) This section is cumulative to all existing laws affecting the 20
hiring or employment of labor. 21
22
Subchapter 2 — Private Employment Agencies 23
24
11-11-201. Title. 25
This subchapter may be cited as the “Arkansas Private Employment Agency 26
Act of 1975”. 27
28
11-11-202. Definitions. 29
As used in this subchapter, unless the context otherwise requires: 30
(1) “Agency manager” means the individual designated by the 31
employment agency to conduct the general management, administration, and 32
operation of a designated employment agency office. Every employment agency 33
must maintain a licensed agency manager at each of its separate office 34
locations; 35
(2) “Applicant” except when used to describe an applicant for an 36 SB278
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employment agency or agency manager's or counselor's license means any 1
person, whether employed or unemployed, seeking or entering into an 2
arrangement for employment or change of employment through the medium or 3
service of an employment agency; 4
(5) “Employee” means a person performing or seeking to perform 5
work or service of any kind or character for compensation; 6
(6) “Employer” means a person employing or seeking to employ a 7
person for compensation; 8
(7)(A) “Employment agent” or “employment agency” means any 9
person engaged for hire, compensation, gain, or profit in the business of 10
furnishing persons seeking employment with information or other service 11
enabling the persons to procure employment by or through employers or 12
furnishing any other person who may be seeking to employ or may be in the 13
market for help of any kind with information enabling the other person to 14
procure help. 15
(B) However, “employment agent” or “employment agency” 16
does not mean: 17
(i) Any person who prepares resumes for individuals 18
for employment purposes if the person who prepares the resumes does not refer 19
or purport to refer prospective employees to employers or employers to 20
prospective employees, does not represent himself or herself as an employment 21
agency, or does not have any financial connection with any employment agency; 22
(ii) Any person who employs individuals to render 23
part-time or temporary services to, for, or under the direction of a third 24
person if the person employing the individuals, in addition to paying wages 25
or salaries, pays federal Social Security taxes and state and federal 26
unemployment insurance and secures work -service to, for, or under the 27
direction of a third person; 28
(iii) Any bona fide nursing school, nurses' 29
registry, management consulting firm, business school, or vocational school 30
whose primary function and purpose is training and education, except that if 31
such an organization charges a fee, directly or indirectly, for job placement 32
of individuals, the organization shall be an employment agency within the 33
meaning of this subchapter; 34
(iv) A labor organization; 35
(v) Any person who publishes advertisements placed 36 SB278
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and paid for by a third person seeking employment or an employee, provided 1
that the person does not procure or offer to procure employment or employees; 2
or 3
(vi) Any person who contracts with an employer to 4
recruit employees for the employer without charge to the prospective 5
employee; 6
(8) “Employment counselor” means an employee of any employment 7
agency who interviews, counsels, or advises applicants or employers, or both, 8
on employment or allied problems or who makes or arranges contracts or 9
contacts between employers and employees. The term “employment counselor” 10
includes employees who solicit orders for employees from prospective 11
employers; 12
(9) “Fee” shall mean anything of value, including any money or 13
other valuable consideration exacted, charged, collected, or received, 14
directly or indirectly, or paid or contracted to be paid for any services or 15
act by an employment agency; and 16
(10) “Person” means any individual, company, firm, association, 17
partnership, or corporation. 18
19
11-11-203. Penalty. 20
(a) The Director of the Division of Labor shall have authority to 21
impose a fine of not less than twenty -five dollars ($25.00) nor more than 22
five hundred dollars ($500) for violation of the provisions of this 23
subchapter by an employment agency or its employees or agents. 24
(b) The director shall notify the employment agency in writing of the 25
reasons for imposition of a fine and at that time shall make available to the 26
employment agency a signed written statement by any individual having filed a 27
complaint with the director relative to the matter for which a fine has been 28
imposed by the director. 29
(c) The agency shall have the right to a hearing before the director 30
and the right to judicial review provided by § 11 -11-223 with respect to the 31
fine. 32
33
11-11-204. Director and division — Powers and duties. 34
(a) It shall be the duty of the Division of Labor, and it shall have 35
the power, jurisdiction, and authority to administer and enforce the 36 SB278
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provisions of this subchapter. 1
(b) The Director of the Division of Labor shall have the power, 2
jurisdiction, and authority to issue licenses to employment agencies, agency 3
managers, and counselors and to refuse to issue, revoke, or suspend the 4
licenses when, after due investigation, and in compliance with the procedures 5
set forth in §§ 11-11-221 and 11-11-222, the director finds that the 6
applicant is for good and sufficient cause unfit to be an employment agent, 7
agency manager, or counselor within the meaning of this subchapter or any 8
rules or orders lawfully promulgated under this subchapter. 9
(c)(1) Complaints against any person, employment agent, agency 10
manager, or counselor may be made to the division orally or in writing. 11
(2) The director shall have the power to compel attendance of 12
witnesses by issuance of subpoenas, administer oaths, direct production of 13
documents and records, and direct taking of testimony and evidence concerning 14
all matters within the jurisdiction of the division. 15
(3) The director may order testimony to be taken by deposition 16
in any proceeding pending before the division at any stage of the proceeding. 17
(4) The director or his or her duly authorized agent shall at 18
all reasonable times have access to, for the purpose of examination and 19
copying, the books, records, papers, and documents of any person being 20
investigated or proceeded against under the provisions of this subchapter, so 21
long as the books, records, papers, or documents sought to be inspected or 22
copied are reasonably related to the investigation or proceeding being 23
conducted by the director. 24
(5) The director or his or her authorized agent shall, upon 25
application of any party to proceedings before the director, issue to the 26
party subpoenas requiring the attendance and testimony of witnesses or the 27
production of any books, records, papers, or documents reasonably related to 28
issues involved in proceedings before the director or an investigation 29
conducted by the director. 30
(6) If any person in proceedings before the director or in 31
investigations conducted by the director disobeys or resists any lawful order 32
or process issued by the director or his or her authorized agents, or fails 33
to produce, after being lawfully directed to do so, any book, paper, record, 34
or document, or refuses to appear and testify after being subpoenaed to do 35
so, the director shall certify the facts to any court of competent 36 SB278
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jurisdiction in the state or to the Pulaski County Circuit Court. 1
(7) The court shall have authority to conduct hearings and 2
punish any person for failure or refusal to testify or produce books, papers, 3
documents, or records subpoenaed or ordered by the director as though the 4
conduct constituted contempt of court. 5
(8) Witnesses summoned by the director or his or her authorized 6
agent shall be paid the same fees and mileage paid to witnesses in the courts 7
of this state. 8
(d)(1) The director may prescribe such rules for the conduct of the 9
business of private employment agencies as necessary to implement this 10
subchapter. 11
(2) These rules shall have the force and effect of law and shall 12
be enforced by the director in the same manner as the provisions of this 13
subchapter. 14
(3) Adoption of rules pursuant to this subsection shall be 15
carried out in compliance with the Arkansas Administrative Procedure Act, § 16
25-15-201 et seq. 17
(e) The division shall have authority to investigate employment 18
agents, agency managers, and counselors. The division shall have the right to 19
examine records required by law to be kept and maintained by employment 20
agents, agency managers, and counselors and to examine the offices where the 21
business is or shall be conducted by them. 22
(f) The division may seek to recover in a court of competent 23
jurisdiction fees charged or collected in violation of this subchapter. 24
25
11-11-208. License required — Penalties. 26
(a) No person shall engage in the business of or act as an employment 27
agent, agency manager, or counselor unless he or she first obtains a license 28
from the Division of Labor. 29
(b)(1)(A) Any person who shall engage in the business of or act as an 30
employment agent, agency manager, or counselor without first procuring a 31
license is guilty of a misdemeanor. 32
(B) He or she shall be punished by a fine of not less than 33
fifty dollars ($50.00) and not more than two hundred fifty dollars ($250) for 34
each day of acting as an employment agent, agency manager, or counselor 35
without a license or by imprisonment for not more than three (3) months, or 36 SB278
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by both. 1
(2) In addition to the penalties described in subdivision (b)(1) 2
of this section, upon petition of the Director of the Division of Labor, any 3
court in the state having the statutory power to enjoin or restrain shall 4
have jurisdiction to restrain and enjoin any person who engages in the 5
business of or acts as an employment agent, agency manager, or counselor 6
without having first procured a license for so engaging or acting. 7
8
11-11-209. Certificate of exemption required for certain 9
organizations. 10
(a) Bona fide nursing schools, nurses' registries, management 11
consulting firms, business schools, vocational schools whose primary function 12
and purpose is training and education, and resume services shall obtain from 13
the Director of the Division of Labor a certificate of exemption from the 14
requirements of this subchapter. 15
(b) In connection with issuance of a certificate of exemption and with 16
respect to an organization's continued eligibility for a previously issued 17
certificate of exemption, the director shall have those investigative powers 18
conferred by § 11-11-204. 19
20
11-11-210. Employment counselor's license — Application — 21
Qualifications. 22
(a) To be eligible for application for an employment counselor's 23
license, the applicant shall be: 24
(1) A citizen of the United States; 25
(2) Of good moral character; 26
(3) A person whose license has not been revoked within two (2) 27
years from the date of application; and 28
(4) Able to demonstrate business integrity. 29
(b)(1) Every applicant for an initial license for employment counselor 30
shall file with the Division of Labor a written application on a form 31
prescribed and furnished by the Director of the Division of Labor. 32
(2) The applicant shall file at least two (2) letters of 33
character reference from persons of reputed business or professional 34
integrity. 35
(3) This application shall contain information prescribed by the 36 SB278
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director. 1
2
11-11-211. Agency manager license — Application — Qualifications. 3
(a) To be eligible to apply for a license to act as an agency manager, 4
the applicant shall be: 5
(1) A citizen of the United States; 6
(2) Of good moral character; 7
(3) At least twenty -one (21) years of age; 8
(4) A person whose license has not been revoked within two (2) 9
years from the date of the application; 10
(5) A person who has completed the twelfth grade, except that 11
the Director of the Division of Labor may establish proof necessary to him or 12
her that the applicant is possessed of a twelfth -grade education in terms of 13
intellectual competency, judgment, and achievement; and 14
(6) A person who demonstrates business integrity, financial 15
responsibility, and judgment. 16
(b)(1) Every applicant for an initial license for agency manager shall 17
file with the Division of Labor a written application on a form prescribed 18
and furnished by the director. 19
(2) The applicant shall file at least two (2) letters of 20
character reference from persons of reputed business or professional 21
integrity. 22
(3) This application shall contain information prescribed by the 23
director. 24
25
11-11-212. Employment agency license — Application — Qualifications. 26
(a) To be eligible to apply for a license to operate an employment 27
agency, the applicant shall be: 28
(1) A citizen of the United States; 29
(2) Of good moral character; 30
(3) At least twenty -one (21) years of age; 31
(4) A person whose license has not been revoked within two (2) 32
years from the date of the application; 33
(5) A person who has completed the twelfth grade, except that 34
the Director of the Division of Labor may establish proof necessary to him or 35
her that the applicant is possessed of a twelfth -grade education in terms of 36 SB278
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intellectual competency, judgment, and achievement; and 1
(6) A person who demonstrates business integrity, financial 2
responsibility, and judgment. 3
(b)(1) Every applicant for an initial employment agency license and 4
every applicant for a renewal license shall file with the Director of the 5
Division of Labor a completed application on a form prescribed and furnished 6
by the Director of the Division of Labor. 7
(2)(A) The application shall be signed by the applicant and 8
sworn to before anyone qualified by law to administer oaths. 9
(B) If the applicant is a corporation, the application 10
shall state the names and home addresses of all shareholders, officers, and 11
directors of the corporation and shall be signed and sworn to by the 12
president, treasurer, and secretary thereof. 13
(C) If the applicant is a partnership, the application 14
shall state the names and home addresses of all partners therein and shall be 15
signed and sworn to by all of them. 16
(3) The applicant shall file at least two (2) letters of 17
character reference from persons of reputed business or professional 18
integrity. 19
(4) This application shall also contain such other information 20
as the Director of the Division of Labor may prescribe. 21
22
11-11-213. Employment agency license — Bond required — Action on the 23
bond. 24
(a)(1) Every application for issuance or renewal of an employment 25
agency's license shall be accompanied by a bond in the sum of five thousand 26
dollars ($5,000) with a duly licensed surety company or companies authorized 27
to do business in this state. 28
(2) The terms and conditions of the bond shall be approved by 29
the Director of the Division of Labor. 30
(3) The bond shall be conditioned that the employment agency and 31
each member, employee, shareholder, director, or officer of a person, firm, 32
partnership, corporation, or association operating as the employment agency 33
will not violate the provisions of this subchapter or violate rules or orders 34
lawfully promulgated by the director or violate the terms of any contract 35
made by the employment agent in the conduct of its business. 36 SB278
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(b)(1) If any person shall be aggrieved by the misconduct of any 1
licensee, that person may maintain an action in his or her own name upon the 2
bond of the employment agency in any court of competent jurisdiction or in 3
the Pulaski County Circuit Court. 4
(2)(A) All claims shall be assignable, and the assignee shall be 5
entitled to the same remedies upon the bond of the licensee as the person 6
aggrieved would have been entitled to if the claim had not been assigned. 7
(B) Any claim so assigned may be enforced in the name of 8
the assignee. 9
(3) Any remedies given by this section shall not be exclusive of 10
any other remedy that would otherwise exist. 11
(c) Action on the bond required by this section may be maintained by 12
the director in the name of the state in any court of competent jurisdiction 13
or in the Pulaski County Circuit Court, for the benefit of any person or 14
persons aggrieved by the misconduct of the licensee. 15
(d)(1) If any licensee fails to file a new bond with the Division of 16
Labor within thirty (30) days after notice of cancellation by the surety of 17
the bond required by this section, the license issued to the principal under 18
the bond is suspended until such time as a new surety bond is filed with and 19
approved by the director. 20
(2) A person whose license is suspended pursuant to this 21
subsection shall not carry on the business of an employment agency during the 22
period of the suspension. 23
24
11-11-214. Investigation of license applicant by director. 25
(a) Upon filing of an application for a license as provided in this 26
subchapter, the Director of the Division of Labor shall cause an 27
investigation to be made regarding the character, business integrity, and 28
financial responsibility of the license applicant. 29
(b) The director shall also determine the suitability or unsuitability 30
of the applicant's proposed office location. 31
(c) An application for an employment agency's, agency manager's, or 32
employment counselor's license shall be rejected by the director if it is 33
found that any person named in the license application is not of good moral 34
character, business integrity, or financial responsibility or if there is 35
good and sufficient reason within the meaning and purpose of this subchapter 36 SB278
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for rejecting the application. 1
2
11-11-215. Employment agency license — Scope — Change of license. 3
(a)(1) An employment agent's license issued pursuant to this 4
subchapter shall protect only those persons to whom it is issued and only the 5
location for which it is issued. 6
(2) A separate license shall be required for each separate 7
office location operated by an employment agency. 8
(3) No license shall be valid to protect any business transacted 9
under any name other than that designated in the license. 10
(b) No employment agent shall permit any person not mentioned in the 11
license or license application to become a member, officer, director, 12
shareholder, or partner in the conduct of the business of the employment 13
agent unless written consent of the Director of the Division of Labor and 14
written consent of the surety on the bond required by this subchapter shall 15
first be obtained. 16
(c) The location of an employment agency shall not be changed without 17
written consent from the Director of the Division of Labor, and a new license 18
application shall be required for any change of office location in excess of 19
twenty-five (25) miles. 20
(d) A charge of ten dollars ($10.00) shall be made by the Division of 21
Labor for the recording of authorization for each change of office location 22
authorized by this section. 23
24
11-11-216. Examination for licenses. 25
(a)(1)(A) Before the Director of the Division of Labor issues a 26
license to an applicant for a permanent employment agent's, permanent agency 27
manager's, or permanent counselor's license, the applicant shall be required 28
to successfully complete a written examination prepared by the director. 29
(B) The examination shall establish the competency of the 30
applicant to: 31
(i) Operate and conduct an employment agency; or 32
(ii) Perform service as an agency manager or counselor for 33
the agency. 34
(2) No examination shall be required for renewal of any license 35
issued pursuant to this subchapter unless the license has been suspended, 36 SB278
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revoked, or submitted late, causing the application to be treated as a new 1
application. 2
(b) The Division of Labor shall hold examinations at such times and 3
places as it shall reasonably determine, except that examinations shall be 4
given to license applicants at least once every sixty (60) days. 5
(c)(1) An examination fee of five dollars ($5.00) shall be paid by 6
each applicant in addition to the license fee. 7
(2) The examination fee shall be retained by the division, 8
whether or not the applicant successfully completes the examination. 9
(3) The examination fee shall be forfeited if the applicant does 10
not take the examination within three (3) months of the application date. 11
12
11-11-217. License fees. 13
(a) Before a permanent license shall be granted to a license 14
applicant, an applicant shall pay the following annual fee for each license: 15
(1) Two hundred fifty dollars ($250) for an employment agency; 16
(2) Twenty-five dollars ($25.00) for an employment agency 17
manager; and 18
(3) Twenty dollars ($20.00) for an employment counselor. 19
(b) Multiple licenses for a person simultaneously performing the 20
functions of employment agent, agency manager, or employment counselor will 21
not be required. The person shall procure a license commensurate with the 22
highest level of job duties and responsibilities customarily and regularly 23
performed by the person. 24
(c) All moneys received from licensing shall be deposited into the 25
general fund of the State Treasury. 26
27
11-11-218. Temporary licenses. 28
(a)(1) The Director of the Division of Labor shall have authority to 29
issue a temporary license for operation of a private employment agency, which 30
shall be valid for no more than ninety (90) days, upon submission by the 31
applicant for the license of: 32
(A) A properly completed application form furnished and 33
approved by the director; 34
(B) Submission of evidence of the applicant's compliance 35
with the bonding requirements of this subchapter; and 36 SB278
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(C) Payment of a temporary license fee of one hundred 1
dollars ($100). 2
(2) The temporary license may be issued only if, after 3
investigation, it reasonably appears that the applicant will meet the 4
qualifications for a permanent private employment agency license. 5
(b)(1) The director shall have authority to issue temporary licenses 6
for agency managers and employment counselors, which shall be valid for no 7
more than ninety (90) days, upon submission by the applicant for such license 8
of: 9
(A) A properly completed application form, furnished and 10
approved by the director; and 11
(B) Payment of a temporary license fee of ten dollars 12
($10.00). 13
(2) The temporary licenses for agency managers and employment 14
counselors may be issued only if, after investigation, it reasonably appears 15
that the applicant will meet the qualifications for a permanent license as 16
agency manager or employment counselor. 17
(3) Temporary licenses issued to agency managers and employment 18
counselors are nontransferable and are automatically rescinded upon 19
suspension or termination of the employment of the agency manager or 20
employment counselor. 21
(4) The director shall approve or reject an application for a 22
temporary agency manager's license or temporary employment counselor's 23
license within five (5) days after receipt of a properly completed 24
application for the license. 25
26
11-11-219. Renewal of licenses. 27
(a) Every license issued pursuant to this subchapter shall remain in 28
force for one (1) year from the date of issue or until the end of the state's 29
fiscal year, whichever occurs first, unless the license has been revoked 30
pursuant to the provisions of this subchapter. 31
(b) Applications for renewal of all licenses provided by this 32
subchapter must be filed with the Director of the Division of Labor no later 33
than thirty (30) days prior to expiration of the license. 34
(c) Any licensee who fails to renew a license by the expiration date 35
shall be automatically suspended from the right to engage in the activity 36 SB278
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authorized by the license until the license is renewed. 1
(d) Every application for renewal of a license must be accompanied by 2
payment of the required license fee and evidence of compliance with the 3
bonding requirements of this subchapter. 4
5
11-11-220. Cessation of business by licensee. 6
(a)(1) If an employment agent ceases business operations, the agent 7
shall, as soon as reasonably possible, notify the Division of Labor and shall 8
deliver or forward by mail the agent's license to the division. Failure to 9
give notice, or failure to deliver such employment agent's license, shall be 10
a violation of § 11-11-208. 11
(2)(A) When one (1) or more individuals, on the basis of whose 12
qualifications an agency license has been obtained, ceases to be connected 13
with the licensed business for any reason whatsoever, the agency business may 14
be carried on for a temporary period not to exceed thirty (30) days, under 15
such terms and conditions as the Director of the Division of Labor shall 16
provide by rule for the orderly closing of the business or the replacement 17
and qualification of a new member, partner, or corporate officer, director, 18
or shareholder. 19
(B) The agency's authorization to continue to do business 20
under this subchapter beyond the thirty -day period provided in this 21
subdivision (a)(2) shall be contingent upon approval by the Director of the 22
Division of Labor of any new member, principal, partner, officer, director, 23
or shareholder. 24
(b)(1) If an agency manager terminates his or her employment with an 25
employment agency by which he or she is employed, the agency shall notify the 26
division, as soon as is reasonably possible, to enable the division to know 27
at all times the identity of the person charged with the general management 28
of each of the agency's office locations. 29
(2) The employment agency shall also deliver or forward by mail 30
the agency manager's license, together with the reasons why the agency 31
manager has terminated his or her position with the employment agency. 32
(c) If an employment counselor terminates his or her employment with 33
the employment agency by which he or she is employed, the agency shall, as 34
soon as is reasonably possible, notify the division and deliver or forward by 35
mail the employment counselor's license to the division, together with the 36 SB278
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reasons for his or her termination. 1
2
11-11-221. Issuance, refusal, suspension, or revocation of license — 3
Grounds. 4
(a) The Director of the Division of Labor shall issue a license as an 5
employment agent, agency manager, or counselor to any person who qualifies 6
for the license under the terms of this subchapter. 7
(b) The director may, in addition, refuse to issue a license to any 8
person or may suspend or revoke the license of any employment agent, agency 9
manager, or employment counselor or impose administrative fines as provided 10
for in § 11-11-203 when the director finds that any of the following 11
conditions exist: 12
(1) That the employment agent, agency manager, or counselor has 13
violated any of the provisions of this subchapter; 14
(2) That the employment agent, agency manager, or counselor has 15
violated any of the rules or other orders lawfully promulgated by the 16
director; 17
(3) That the employment agent, agency manager, or counselor has 18
violated the conditions of the bond required by § 11 -11-213; 19
(4) That the person, employment agent, agency manager, or 20
employment counselor has engaged in a fraudulent, deceptive, or dishonest 21
practice; 22
(5) That the person, employment agent, agency manager, or 23
employment counselor has been legally adjudicated incompetent; or 24
(6) That the applicant is for good and sufficient cause unfit to 25
be an employment agent, agency manager, or employment counselor within the 26
meaning of this subchapter or of any of the rules or orders lawfully 27
promulgated by the director. 28
(c) This section and § 11 -11-222 shall not be construed to relieve any 29
person from civil liability or from criminal prosecution under the provisions 30
of this subchapter or under other laws of this state. 31
32
11-11-222. Refusal, suspension, or revocation of license — Notice and 33
hearing. 34
(a)(1) The Director of the Division of Labor may not refuse to issue a 35
license or suspend or revoke a license unless it furnishes the person, 36 SB278
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employment agent, agency manager, or employment counselor with a written 1
statement of the charges against him or her and affords him or her an 2
opportunity to be heard on the charges. 3
(2) At the time that written charges are furnished to an 4
employment agency, the director shall make available to the agency a signed 5
written statement by any individual having filed a complaint with the 6
director relative to the matter for which charges have been filed by the 7
director. 8
(3) The agency shall be given at least twenty (20) days’ written 9
notice of the date and time of the hearing. The notice shall conform to the 10
standards for notices set forth in the Arkansas Administrative Procedure Act, 11
§ 25-15-201 et seq. 12
(4) The notice shall be sent by certified mail, return receipt 13
requested, to the address of the person as shown on his or her application 14
for license, or it may be served in the manner in which a summons is served 15
in civil cases commenced in the circuit courts of this state. 16
(b)(1) At the time and place fixed for the hearing, the director shall 17
hold the hearing and thereafter make his or her order either dismissing the 18
charges or refusing, suspending, or revoking the license. 19
(2)(A) At the hearing, the accused shall have the right to 20
appear personally and by counsel and to cross -examine witnesses against him 21
or her. 22
(B)(i) He or she shall be allowed to produce evidence and 23
witnesses in his or her defense and shall have the right to have witnesses 24
subpoenaed. 25
(ii) The subpoenas shall be issued by the director. 26
(c)(1) A stenographic record of all proceedings shall be made, and a 27
transcript of the proceedings shall be made if desired by the Division of 28
Labor or by the accused. 29
(2) The transcript shall be paid for by the party ordering it. 30
31
11-11-223. Judicial review of director's administrative orders. 32
(a) If the Director of the Division of Labor refuses to grant a 33
license, suspends or revokes a license that has been granted, or imposes an 34
administrative fine as provided in §§ 11 -11-213, 11-11-221, and 11-11-222, 35
the person adversely affected or aggrieved by the order of the director 36 SB278
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issued pursuant to the provisions of §§ 11 -11-221 and 11-11-222 may obtain a 1
review of the order. 2
(b) The order may be brought in the circuit court in the judicial 3
district in which the violation is alleged to have occurred, where the 4
employment agent, manager, or counselor worked, or in the Pulaski County 5
Circuit Court or, if the aggrieved person is a nonresident of the state, in 6
the Pulaski County Circuit Court. 7
(c)(1) The review may be obtained by filing in the court within thirty 8
(30) days following the issuance of the order a written petition praying that 9
the order be modified or set aside. 10
(2)(A) A copy of the petition shall be forthwith transmitted by 11
the clerk of the court to the Division of Labor. 12
(B) Thereupon, the division shall file in the court the 13
record of proceedings before the division. 14
(d) Upon the filing, the court shall have jurisdiction of the 15
proceedings and of the questions determined therein and shall have power to 16
grant such temporary relief or restraining order as it deems just and proper 17
and to make and enter upon the pleadings, testimony, and proceedings set 18
forth in the record a decree affirming, modifying, or setting aside, in whole 19
or in part, the order of the director and enforcing the same to the extent 20
that the order is affirmed. 21
(e) Commencement of proceedings under this section shall not, unless 22
ordered by the court, operate as a stay of the order of the director. 23
(f)(1) No objection which has not been urged before the director shall 24
be considered by the court. 25
(2) The findings of the director with respect to questions of 26
fact, if supported by substantial evidence on the record considered as a 27
whole, shall be conclusive. 28
(g)(1) If any party shall apply to the court for leave to adduce 29
additional evidence and shall show to the satisfaction of the court that the 30
additional evidence is material and that there were reasonable grounds for 31
the failure to adduce the evidence in the hearing before the director, the 32
court may order the additional evidence to be taken before the director and 33
made a part of the record. 34
(2)(A) The director may modify his or her findings as to the 35
facts or make new findings, by reason of additional evidence so taken and 36 SB278
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filed, and the director shall file the modified or new findings with the 1
court. 2
(B) The findings with respect to questions of fact, if 3
supported by substantial evidence on the record considered as a whole, shall 4
be conclusive. 5
(h) Upon the filing of the record with it, the jurisdiction of the 6
court shall be exclusive, and its judgment and decree shall be final, except 7
that it shall be subject to review by the Supreme Court. 8
(i)(1) The division shall certify the record of its proceedings if the 9
party commencing the proceedings shall pay to it the cost of preparing and 10
certifying the records, including the recording and transcribing of all 11
testimony introduced in the proceedings. 12
(2) If payment of the costs of preparing and certifying the 13
records, including the recording and transcribing of all testimony introduced 14
in the proceedings, is not made by the party commencing the proceedings for 15
review within ten (10) days after notice from the division of the cost of 16
preparing and certifying the record, the circuit court in which the 17
proceeding is pending, on motion of the director, shall dismiss the petition. 18
19
11-11-224. Deceptive practices. 20
(a) No employment agent shall publish or cause to be published any 21
fraudulent or misleading notice or advertisement of the employment agency by 22
means of cards, circulars, or signs or in newspapers or other publications. 23
(b) All letterheads, receipts, and blanks shall contain the full name 24
and address of the employment agency, and the licensee shall state in all 25
notices and advertisements the fact that the licensee is or conducts a 26
private employment agency. 27
(c) No employment agency shall print, publish, or paint on any sign or 28
window or insert in any newspaper or publication a name similar to that of 29
the Arkansas State Employment Service or any other governmental agency. 30
(d) No employment agency shall print or stamp on any receipt or on any 31
contract used by the agency any part of this subchapter unless the entire 32
section from which the part is taken is printed or stamped thereon. 33
(e) No employment agency shall allow any person in its employment to 34
use any names other than their legal names in the course of and in respect to 35
their employment with the agency. 36 SB278
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(f) No employment agency or its employees or agents shall give any 1
information or make any representation to any applicant, where the agency or 2
its employees or agents know or reasonably should know that the information 3
or representation is false. 4
(g) No employment agency or its employees or agents shall knowingly 5
withhold from a job applicant any information material to a job to which that 6
applicant is referred. 7
(h) No employment agent or its agents or employees shall engage in any 8
conduct in the course of its business that constitutes a fraudulent, 9
dishonest, or deceptive practice, whether or not the conduct is prohibited by 10
this subchapter. 11
(i) No contracts, forms, or schedules used by employment agencies in 12
their dealings with the public shall contain any false, ambiguous, or 13
misleading information. 14
15
11-11-225. Miscellaneous restrictions and requirements. 16
In addition to other provisions of this subchapter, the following 17
provisions shall govern each and every employment agency: 18
(1) Every employment agent or agency shall display his, her, or 19
its license in a conspicuous place in the main office of the agency. Managers 20
and counselors shall display their licenses in a conspicuous place in their 21
offices or work areas; 22
(2)(A) All advertising by an employment agency of any form or 23
kind shall include the words “employment agency” or “personnel agency”. 24
(B) Advertising for an employment position with the agency 25
itself shall clearly convey the information that the job position offered is 26
with the employment agency publishing the advertisement; 27
(3) No employment agency or its agents or employees shall 28
receive or require any applicant to execute any power of attorney, assignment 29
of wages or salary, or note authorizing the confession of judgment; 30
(4) No employment agent, by himself or herself, or by his or her 31
agents or employees, shall solicit, persuade, or induce any employee to leave 32
any employment in which the employment agent or his or her agent has placed 33
the employee, nor shall any employment agency or any of its agents or 34
employees solicit, persuade, or induce any employer to discharge any 35
employee, nor shall any employment agent, or his or her agents or employees, 36 SB278
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divide or offer to divide or share directly or indirectly any fee, charge, or 1
compensation received, or to be received, from an employee with any employer 2
or persons in any way connected with the business thereof; 3
(5)(A) No employment agent by himself or herself or by his or 4
her agents or employees shall give or promise to give anything of intrinsic 5
value to any employer or applicant for employment as an inducement to use the 6
services of his or her employment agency. 7
(B) No fee shall be solicited or accepted as an 8
application or registration fee by an employment agent for the purpose of 9
registering any person as an applicant for employment; 10
(6) No employment agency or its agents or employees shall 11
advertise or make a referral for any job position without having first 12
obtained a bona fide job order therefor; 13
(7) No employment agency or its agents or employees shall refer 14
an applicant for a job or job interview unless the applicant has been 15
personally interviewed by the employment agency or its agents or employees or 16
has corresponded with the employment agency with the specific purpose of 17
securing employment through that employment agency; 18
(8)(A) Every employment agency shall inform the public by a 19
conspicuous sign or poster that the employment agency is subject to the 20
requirements of this subchapter, which is administered and enforced by the 21
Division of Labor. 22
(B) The division shall prepare and distribute the sign or 23
poster to be used by agencies to comply with this subdivision (8); 24
(9) No employment agency or its agents or employees shall 25
knowingly send an applicant to any place where a strike, lockout, or other 26
labor dispute exists; 27
(10) No agency shall use any trade name or business identity 28
similar to, or reasonably likely to be confused with, the trade name or 29
business identity of an existing agency or any governmental nonprofit 30
employment agency; 31
(11) No employment agency shall refer an applicant to a 32
situation, employment, or occupation prohibited by law; 33
(12) No employment agency shall charge a fee to an employee for 34
any services other than actual placement of an applicant; 35
(13) No employment agency shall charge an applicant a fee for 36 SB278
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accepting employment with the employment agency or any subsidiary of that 1
agency; 2
(14) Any information regarding an applicant's background or 3
credit, from whatever source obtained, shall be used for no purpose other 4
than assisting the applicant in securing employment. However, an employment 5
agency may use background and credit information regarding an applicant in 6
determining whether to conduct placement services for the applicant if the 7
applicant gives written authorization for securing the information and 8
understands the purpose for which the information is secured; 9
(15) No employment agency or its agents or employees shall 10
engage in any practice that discriminates against any person on the basis of 11
race, color, sex, age, religion, or national origin; 12
(16) Under no circumstances shall more than one (1) fee for any 13
one (1) placement be charged any applicant; 14
(17) No contracts, forms, or schedules used by employment 15
agencies shall contain any provisions in conflict with the provisions of this 16
subchapter; and 17
(18) All refunds due shall be made by the agency by cash, check, 18
or money order promptly when due. 19
20
11-11-226. Designation of manager required. 21
(a) Every employment agency shall designate an agency manager at each 22
office location of that agency, who shall be responsible for the general 23
management, administration, and operation of that office location. 24
(b) The agency manager must comply with the licensing requirements of 25
§§ 11-11-210 — 11-11-212, 11-11-214, 11-11-217, 11-11-218, 11-11-220(a)(1) 26
and (b), and 11-11-226. 27
(c) Every employment agency must maintain an agency manager at each of 28
its office locations. 29
30
11-11-227. Fee restrictions and requirements. 31
(a) When employment lasts less than ninety (90) calendar days, 32
regardless of the reason, no employment agency may charge an employee a fee 33
of more than one-ninetieth (1/90th) of the permanent placement fee for each 34
calendar day of the employment. Under no circumstances shall the fee exceed 35
twenty percent (20%) of an employee's actual gross earnings if employment 36 SB278
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lasts less than thirty (30) days or forty percent (40%) of an employee's 1
actual gross earnings if employment lasts more than thirty (30) days but less 2
than ninety (90) days. 3
(b)(1) When a promissory note is used by the agency, it shall be 4
clearly identified as such and shall not be executed until the placement is 5
made. 6
(2) The defense of no or insufficient consideration shall be 7
good as against a holder of any such employment agency fee note. 8
(c)(1) When a dispute concerning a fee exists, the Division of Labor 9
may conduct an investigation to determine all of the facts concerning the 10
dispute. Thereafter, the Director of the Division of Labor shall issue a 11
decision and order resolving the dispute. 12
(2) Any person aggrieved by this decision and order may obtain 13
review of this decision and order pursuant to § 11 -11-222. 14
(d)(1) Any schedule of fees to be charged by an employment agency for 15
its services shall be furnished to all applicants upon making application 16
with the agency. 17
(2)(A) The forms, fee schedules, and contracts utilized by an 18
employment agency shall contain no ambiguous, false, or misleading 19
information. 20
(B) No contract or fee schedule shall contain smaller than 21
eight-point type. 22
(e)(1) All fee schedules used in the business of an employment agency 23
must be furnished to job applicants and fee -paying employers and shall state 24
in dollars and cents the amount of any fee charged by the agency for its 25
services. 26
(2) Percentages shall not be used by agencies in schedules of 27
fees to be charged for their services, except when the annual salary for a 28
job is twelve thousand dollars ($12,000) or more. 29
(f) It shall be unlawful for any employment agency to impose, enforce, 30
collect, or receive a fee for performance of any service for a job applicant, 31
or for a prospective employer, unless the agency makes every reasonable 32
effort to disclose the exact dollar amount of the fee to the applicant or 33
prospective employer prior to commencement of employment of an applicant by 34
an employer. 35
(g) Nothing in this section or this subchapter shall be construed to 36 SB278
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prohibit an employment agency from contracting with an employer on a fee -paid 1
basis to pay the fee for the placement services for an employee without an 2
actual job placement or to prohibit an agency from charging a fee to an 3
employer for a retained services contract to search for applicants for an 4
employer without an actual job placement. 5
6
11-11-228. Filing of fee schedule, forms, and contracts required. 7
(a) It shall be the duty of every employment agency to file with the 8
Division of Labor a schedule of all fees, charges, and commissions that the 9
agency expects to charge and collect for its service, together with a copy of 10
all forms and contracts to be used in dealings with the public in the 11
operation of its business. 12
(b) The fee schedules, contracts, and forms shall be filed with the 13
division on the date of the agency's application for initial or renewal 14
licensing under this subchapter. 15
(c) Any amendments or supplements to fee schedules, contracts, or 16
forms filed with the division must be filed at least fifteen (15) days before 17
the amendment or supplement is to become effective. 18
(d) It shall be unlawful for any employment agency to charge, demand, 19
collect, or receive a greater compensation for any service performed by the 20
agency than is specified in fee schedules filed with the division or than is 21
specified by this subchapter. 22
23
11-11-229. Records required. 24
(a) It shall be the duty of every employment agency to keep a complete 25
record of all orders for employees that are received from prospective 26
employers. This record shall contain the date when the order was received, 27
the name and address of the employer seeking the services of an employee, the 28
name of the individual placing the order, the duties of the position to be 29
filled, the qualifications required of the employee, the salary or wages to 30
be paid, and the probable duration of the job. 31
(b) It shall be the duty of every employment agency to keep a complete 32
record of each applicant who is referred by the agency to an employer for a 33
job interview. This record shall contain the date when the applicant was 34
referred to a prospective employer for a job or interview, the name of the 35
applicant, and the name of the firm to whom the applicant is referred. 36 SB278
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(c)(1) It shall be the duty of every employment agency to keep a 1
complete register called a “business transaction record”, which shall consist 2
of the name of the individual placed, the date of the placement, the name of 3
the employer, the starting date of the position, the starting salary, the 4
amount of the fee charged, and the remarks column. 5
(2) The remarks column will state the amount of any adjustment 6
or refund made. 7
(d)(1) Prior to referral of any person to a job or interview or prior 8
to placement of any job advertisement, an employment agency must have a 9
current bona fide job order. 10
(2) It shall be the duty of every employment agency to maintain 11
a copy of any job advertisement and the job order pertaining to any 12
advertisement in a readily available record. 13
(e) All of the records listed in this section shall be kept in the 14
employment agency office and shall be open during office hours to inspection 15
by the Division of Labor and its duly authorized agents. 16
(f) No employment agent or his or her employee shall knowingly make 17
any false entry or omission in the records. 18
19
SECTION 2. Arkansas Code § 19 -6-201(17), concerning the enumeration of 20
general revenues of the state, is repealed. 21
(17) Employment agency licenses, as enacted by Acts 1975, No. 22
493, known as the “Arkansas Private Employment Agency Act of 1975”, and all 23
laws amendatory thereto, § 11 -11-201 et seq.; 24
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