Arkansas 2025 Regular Session

Arkansas Senate Bill SB278 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 438 of the Regular Session
32 *LGL103* 02/21/2025 3:52:17 PM LGL103
43 State of Arkansas 1
54 95th General Assembly A Bill 2
65 Regular Session, 2025 SENATE BILL 278 3
76 4
87 By: Senator J. English 5
98 By: Representative S. Meeks 6
109 7
1110 For An Act To Be Entitled 8
1211 AN ACT TO REPEAL THE STATUTES CONCERNING THE 9
1312 OCCUPATIONAL AUTHORIZATION AND LICENSURE OF PRIVATE 10
1413 EMPLOYMENT AGENCIES, EMPLOYMENT COUNSELORS, AND 11
1514 EMPLOYMENT AGENCY MANAGERS; TO REPEAL THE ARKANSAS 12
1615 PRIVATE EMPLOYMENT AGENCY ACT OF 1975; AND FOR OTHER 13
1716 PURPOSES. 14
1817 15
1918 16
2019 Subtitle 17
2120 TO REPEAL THE STATUTES CONCERNING THE 18
2221 OCCUPATIONAL AUTHORIZATION AND LICENSURE 19
2322 OF CERTAIN EMPLOYMENT OFFICES AND 20
2423 AGENCIES; AND TO REPEAL THE ARKANSAS 21
2524 PRIVATE EMPLOYMENT AGENCY ACT OF 1975. 22
2625 23
2726 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
2827 25
2928 SECTION 1. Arkansas Code Title 11, Chapter 11, is repealed. 26
3029 27
3130 CHAPTER 11 — EMPLOYMENT OFFICES AND AGENCIES 28
3231 29
3332 Subchapter 1 — General Provisions 30
3433 31
3534 11-11-101. Recruitment of labor by foreign labor agents. 32
3635 (a) No foreign labor agent, labor bureau or employment agency, or any 33
3736 other person shall enter this state and attempt to hire, induce, or take from 34
3837 this state any labor, singularly or in groups, for any purpose, whether or 35
3938 not a fee or charge is extracted from the worker, without first applying to 36 SB278
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4241 the Director of the Division of Labor for a license to do so and filing with 1
4342 the director: 2
4443 (1) A statement as to where the labor is to be taken, for what 3
4544 purpose, for what length of time, and whether transportation is to be paid to 4
4645 and from the destination, if temporary; 5
4746 (2) A statement of the financial standing of the employer 6
4847 desiring the labor; 7
4948 (3) An affidavit of authority to represent the employer in this 8
5049 state; and 9
5150 (4) Whatever other information the director may require. 10
5251 (b)(1) The director shall determine whether the person desiring the 11
5352 labor from this state is a labor agent, labor bureau, or employment agency 12
5453 and, if so, whether the applicant is qualified to be licensed under the laws 13
5554 of this state and according to the provisions of this section. 14
5655 (2) The director, after the investigation, may refuse to license 15
5756 or register the applicant until the applicant has complied with the 16
5857 provisions of this section. 17
5958 (3) The applicant shall, in the event of unfavorable action by 18
6059 the director, have the right of appeal to the proper court. 19
6160 (c) This section is cumulative to all existing laws affecting the 20
6261 hiring or employment of labor. 21
6362 22
6463 Subchapter 2 — Private Employment Agencies 23
6564 24
6665 11-11-201. Title. 25
6766 This subchapter may be cited as the “Arkansas Private Employment Agency 26
6867 Act of 1975”. 27
6968 28
7069 11-11-202. Definitions. 29
7170 As used in this subchapter, unless the context otherwise requires: 30
7271 (1) “Agency manager” means the individual designated by the 31
7372 employment agency to conduct the general management, administration, and 32
7473 operation of a designated employment agency office. Every employment agency 33
7574 must maintain a licensed agency manager at each of its separate office 34
7675 locations; 35
7776 (2) “Applicant” except when used to describe an applicant for an 36 SB278
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8079 employment agency or agency manager's or counselor's license means any 1
8180 person, whether employed or unemployed, seeking or entering into an 2
8281 arrangement for employment or change of employment through the medium or 3
8382 service of an employment agency; 4
8483 (5) “Employee” means a person performing or seeking to perform 5
8584 work or service of any kind or character for compensation; 6
8685 (6) “Employer” means a person employing or seeking to employ a 7
8786 person for compensation; 8
8887 (7)(A) “Employment agent” or “employment agency” means any 9
8988 person engaged for hire, compensation, gain, or profit in the business of 10
9089 furnishing persons seeking employment with information or other service 11
9190 enabling the persons to procure employment by or through employers or 12
9291 furnishing any other person who may be seeking to employ or may be in the 13
9392 market for help of any kind with information enabling the other person to 14
9493 procure help. 15
9594 (B) However, “employment agent” or “employment agency” 16
9695 does not mean: 17
9796 (i) Any person who prepares resumes for individuals 18
9897 for employment purposes if the person who prepares the resumes does not refer 19
9998 or purport to refer prospective employees to employers or employers to 20
10099 prospective employees, does not represent himself or herself as an employment 21
101100 agency, or does not have any financial connection with any employment agency; 22
102101 (ii) Any person who employs individuals to render 23
103102 part-time or temporary services to, for, or under the direction of a third 24
104103 person if the person employing the individuals, in addition to paying wages 25
105104 or salaries, pays federal Social Security taxes and state and federal 26
106105 unemployment insurance and secures work -service to, for, or under the 27
107106 direction of a third person; 28
108107 (iii) Any bona fide nursing school, nurses' 29
109108 registry, management consulting firm, business school, or vocational school 30
110109 whose primary function and purpose is training and education, except that if 31
111110 such an organization charges a fee, directly or indirectly, for job placement 32
112111 of individuals, the organization shall be an employment agency within the 33
113112 meaning of this subchapter; 34
114113 (iv) A labor organization; 35
115114 (v) Any person who publishes advertisements placed 36 SB278
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118117 and paid for by a third person seeking employment or an employee, provided 1
119118 that the person does not procure or offer to procure employment or employees; 2
120119 or 3
121120 (vi) Any person who contracts with an employer to 4
122121 recruit employees for the employer without charge to the prospective 5
123122 employee; 6
124123 (8) “Employment counselor” means an employee of any employment 7
125124 agency who interviews, counsels, or advises applicants or employers, or both, 8
126125 on employment or allied problems or who makes or arranges contracts or 9
127126 contacts between employers and employees. The term “employment counselor” 10
128127 includes employees who solicit orders for employees from prospective 11
129128 employers; 12
130129 (9) “Fee” shall mean anything of value, including any money or 13
131130 other valuable consideration exacted, charged, collected, or received, 14
132131 directly or indirectly, or paid or contracted to be paid for any services or 15
133132 act by an employment agency; and 16
134133 (10) “Person” means any individual, company, firm, association, 17
135134 partnership, or corporation. 18
136135 19
137136 11-11-203. Penalty. 20
138137 (a) The Director of the Division of Labor shall have authority to 21
139138 impose a fine of not less than twenty -five dollars ($25.00) nor more than 22
140139 five hundred dollars ($500) for violation of the provisions of this 23
141140 subchapter by an employment agency or its employees or agents. 24
142141 (b) The director shall notify the employment agency in writing of the 25
143142 reasons for imposition of a fine and at that time shall make available to the 26
144143 employment agency a signed written statement by any individual having filed a 27
145144 complaint with the director relative to the matter for which a fine has been 28
146145 imposed by the director. 29
147146 (c) The agency shall have the right to a hearing before the director 30
148147 and the right to judicial review provided by § 11 -11-223 with respect to the 31
149148 fine. 32
150149 33
151150 11-11-204. Director and division — Powers and duties. 34
152151 (a) It shall be the duty of the Division of Labor, and it shall have 35
153152 the power, jurisdiction, and authority to administer and enforce the 36 SB278
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156155 provisions of this subchapter. 1
157156 (b) The Director of the Division of Labor shall have the power, 2
158157 jurisdiction, and authority to issue licenses to employment agencies, agency 3
159158 managers, and counselors and to refuse to issue, revoke, or suspend the 4
160159 licenses when, after due investigation, and in compliance with the procedures 5
161160 set forth in §§ 11-11-221 and 11-11-222, the director finds that the 6
162161 applicant is for good and sufficient cause unfit to be an employment agent, 7
163162 agency manager, or counselor within the meaning of this subchapter or any 8
164163 rules or orders lawfully promulgated under this subchapter. 9
165164 (c)(1) Complaints against any person, employment agent, agency 10
166165 manager, or counselor may be made to the division orally or in writing. 11
167166 (2) The director shall have the power to compel attendance of 12
168167 witnesses by issuance of subpoenas, administer oaths, direct production of 13
169168 documents and records, and direct taking of testimony and evidence concerning 14
170169 all matters within the jurisdiction of the division. 15
171170 (3) The director may order testimony to be taken by deposition 16
172171 in any proceeding pending before the division at any stage of the proceeding. 17
173172 (4) The director or his or her duly authorized agent shall at 18
174173 all reasonable times have access to, for the purpose of examination and 19
175174 copying, the books, records, papers, and documents of any person being 20
176175 investigated or proceeded against under the provisions of this subchapter, so 21
177176 long as the books, records, papers, or documents sought to be inspected or 22
178177 copied are reasonably related to the investigation or proceeding being 23
179178 conducted by the director. 24
180179 (5) The director or his or her authorized agent shall, upon 25
181180 application of any party to proceedings before the director, issue to the 26
182181 party subpoenas requiring the attendance and testimony of witnesses or the 27
183182 production of any books, records, papers, or documents reasonably related to 28
184183 issues involved in proceedings before the director or an investigation 29
185184 conducted by the director. 30
186185 (6) If any person in proceedings before the director or in 31
187186 investigations conducted by the director disobeys or resists any lawful order 32
188187 or process issued by the director or his or her authorized agents, or fails 33
189188 to produce, after being lawfully directed to do so, any book, paper, record, 34
190189 or document, or refuses to appear and testify after being subpoenaed to do 35
191190 so, the director shall certify the facts to any court of competent 36 SB278
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194193 jurisdiction in the state or to the Pulaski County Circuit Court. 1
195194 (7) The court shall have authority to conduct hearings and 2
196195 punish any person for failure or refusal to testify or produce books, papers, 3
197196 documents, or records subpoenaed or ordered by the director as though the 4
198197 conduct constituted contempt of court. 5
199198 (8) Witnesses summoned by the director or his or her authorized 6
200199 agent shall be paid the same fees and mileage paid to witnesses in the courts 7
201200 of this state. 8
202201 (d)(1) The director may prescribe such rules for the conduct of the 9
203202 business of private employment agencies as necessary to implement this 10
204203 subchapter. 11
205204 (2) These rules shall have the force and effect of law and shall 12
206205 be enforced by the director in the same manner as the provisions of this 13
207206 subchapter. 14
208207 (3) Adoption of rules pursuant to this subsection shall be 15
209208 carried out in compliance with the Arkansas Administrative Procedure Act, § 16
210209 25-15-201 et seq. 17
211210 (e) The division shall have authority to investigate employment 18
212211 agents, agency managers, and counselors. The division shall have the right to 19
213212 examine records required by law to be kept and maintained by employment 20
214213 agents, agency managers, and counselors and to examine the offices where the 21
215214 business is or shall be conducted by them. 22
216215 (f) The division may seek to recover in a court of competent 23
217216 jurisdiction fees charged or collected in violation of this subchapter. 24
218217 25
219218 11-11-208. License required — Penalties. 26
220219 (a) No person shall engage in the business of or act as an employment 27
221220 agent, agency manager, or counselor unless he or she first obtains a license 28
222221 from the Division of Labor. 29
223222 (b)(1)(A) Any person who shall engage in the business of or act as an 30
224223 employment agent, agency manager, or counselor without first procuring a 31
225224 license is guilty of a misdemeanor. 32
226225 (B) He or she shall be punished by a fine of not less than 33
227226 fifty dollars ($50.00) and not more than two hundred fifty dollars ($250) for 34
228227 each day of acting as an employment agent, agency manager, or counselor 35
229228 without a license or by imprisonment for not more than three (3) months, or 36 SB278
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232231 by both. 1
233232 (2) In addition to the penalties described in subdivision (b)(1) 2
234233 of this section, upon petition of the Director of the Division of Labor, any 3
235234 court in the state having the statutory power to enjoin or restrain shall 4
236235 have jurisdiction to restrain and enjoin any person who engages in the 5
237236 business of or acts as an employment agent, agency manager, or counselor 6
238237 without having first procured a license for so engaging or acting. 7
239238 8
240239 11-11-209. Certificate of exemption required for certain 9
241240 organizations. 10
242241 (a) Bona fide nursing schools, nurses' registries, management 11
243242 consulting firms, business schools, vocational schools whose primary function 12
244243 and purpose is training and education, and resume services shall obtain from 13
245244 the Director of the Division of Labor a certificate of exemption from the 14
246245 requirements of this subchapter. 15
247246 (b) In connection with issuance of a certificate of exemption and with 16
248247 respect to an organization's continued eligibility for a previously issued 17
249248 certificate of exemption, the director shall have those investigative powers 18
250249 conferred by § 11-11-204. 19
251250 20
252251 11-11-210. Employment counselor's license — Application — 21
253252 Qualifications. 22
254253 (a) To be eligible for application for an employment counselor's 23
255254 license, the applicant shall be: 24
256255 (1) A citizen of the United States; 25
257256 (2) Of good moral character; 26
258257 (3) A person whose license has not been revoked within two (2) 27
259258 years from the date of application; and 28
260259 (4) Able to demonstrate business integrity. 29
261260 (b)(1) Every applicant for an initial license for employment counselor 30
262261 shall file with the Division of Labor a written application on a form 31
263262 prescribed and furnished by the Director of the Division of Labor. 32
264263 (2) The applicant shall file at least two (2) letters of 33
265264 character reference from persons of reputed business or professional 34
266265 integrity. 35
267266 (3) This application shall contain information prescribed by the 36 SB278
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270269 director. 1
271270 2
272271 11-11-211. Agency manager license — Application — Qualifications. 3
273272 (a) To be eligible to apply for a license to act as an agency manager, 4
274273 the applicant shall be: 5
275274 (1) A citizen of the United States; 6
276275 (2) Of good moral character; 7
277276 (3) At least twenty -one (21) years of age; 8
278277 (4) A person whose license has not been revoked within two (2) 9
279278 years from the date of the application; 10
280279 (5) A person who has completed the twelfth grade, except that 11
281280 the Director of the Division of Labor may establish proof necessary to him or 12
282281 her that the applicant is possessed of a twelfth -grade education in terms of 13
283282 intellectual competency, judgment, and achievement; and 14
284283 (6) A person who demonstrates business integrity, financial 15
285284 responsibility, and judgment. 16
286285 (b)(1) Every applicant for an initial license for agency manager shall 17
287286 file with the Division of Labor a written application on a form prescribed 18
288287 and furnished by the director. 19
289288 (2) The applicant shall file at least two (2) letters of 20
290289 character reference from persons of reputed business or professional 21
291290 integrity. 22
292291 (3) This application shall contain information prescribed by the 23
293292 director. 24
294293 25
295294 11-11-212. Employment agency license — Application — Qualifications. 26
296295 (a) To be eligible to apply for a license to operate an employment 27
297296 agency, the applicant shall be: 28
298297 (1) A citizen of the United States; 29
299298 (2) Of good moral character; 30
300299 (3) At least twenty -one (21) years of age; 31
301300 (4) A person whose license has not been revoked within two (2) 32
302301 years from the date of the application; 33
303302 (5) A person who has completed the twelfth grade, except that 34
304303 the Director of the Division of Labor may establish proof necessary to him or 35
305304 her that the applicant is possessed of a twelfth -grade education in terms of 36 SB278
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308307 intellectual competency, judgment, and achievement; and 1
309308 (6) A person who demonstrates business integrity, financial 2
310309 responsibility, and judgment. 3
311310 (b)(1) Every applicant for an initial employment agency license and 4
312311 every applicant for a renewal license shall file with the Director of the 5
313312 Division of Labor a completed application on a form prescribed and furnished 6
314313 by the Director of the Division of Labor. 7
315314 (2)(A) The application shall be signed by the applicant and 8
316315 sworn to before anyone qualified by law to administer oaths. 9
317316 (B) If the applicant is a corporation, the application 10
318317 shall state the names and home addresses of all shareholders, officers, and 11
319318 directors of the corporation and shall be signed and sworn to by the 12
320319 president, treasurer, and secretary thereof. 13
321320 (C) If the applicant is a partnership, the application 14
322321 shall state the names and home addresses of all partners therein and shall be 15
323322 signed and sworn to by all of them. 16
324323 (3) The applicant shall file at least two (2) letters of 17
325324 character reference from persons of reputed business or professional 18
326325 integrity. 19
327326 (4) This application shall also contain such other information 20
328327 as the Director of the Division of Labor may prescribe. 21
329328 22
330329 11-11-213. Employment agency license — Bond required — Action on the 23
331330 bond. 24
332331 (a)(1) Every application for issuance or renewal of an employment 25
333332 agency's license shall be accompanied by a bond in the sum of five thousand 26
334333 dollars ($5,000) with a duly licensed surety company or companies authorized 27
335334 to do business in this state. 28
336335 (2) The terms and conditions of the bond shall be approved by 29
337336 the Director of the Division of Labor. 30
338337 (3) The bond shall be conditioned that the employment agency and 31
339338 each member, employee, shareholder, director, or officer of a person, firm, 32
340339 partnership, corporation, or association operating as the employment agency 33
341340 will not violate the provisions of this subchapter or violate rules or orders 34
342341 lawfully promulgated by the director or violate the terms of any contract 35
343342 made by the employment agent in the conduct of its business. 36 SB278
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346345 (b)(1) If any person shall be aggrieved by the misconduct of any 1
347346 licensee, that person may maintain an action in his or her own name upon the 2
348347 bond of the employment agency in any court of competent jurisdiction or in 3
349348 the Pulaski County Circuit Court. 4
350349 (2)(A) All claims shall be assignable, and the assignee shall be 5
351350 entitled to the same remedies upon the bond of the licensee as the person 6
352351 aggrieved would have been entitled to if the claim had not been assigned. 7
353352 (B) Any claim so assigned may be enforced in the name of 8
354353 the assignee. 9
355354 (3) Any remedies given by this section shall not be exclusive of 10
356355 any other remedy that would otherwise exist. 11
357356 (c) Action on the bond required by this section may be maintained by 12
358357 the director in the name of the state in any court of competent jurisdiction 13
359358 or in the Pulaski County Circuit Court, for the benefit of any person or 14
360359 persons aggrieved by the misconduct of the licensee. 15
361360 (d)(1) If any licensee fails to file a new bond with the Division of 16
362361 Labor within thirty (30) days after notice of cancellation by the surety of 17
363362 the bond required by this section, the license issued to the principal under 18
364363 the bond is suspended until such time as a new surety bond is filed with and 19
365364 approved by the director. 20
366365 (2) A person whose license is suspended pursuant to this 21
367366 subsection shall not carry on the business of an employment agency during the 22
368367 period of the suspension. 23
369368 24
370369 11-11-214. Investigation of license applicant by director. 25
371370 (a) Upon filing of an application for a license as provided in this 26
372371 subchapter, the Director of the Division of Labor shall cause an 27
373372 investigation to be made regarding the character, business integrity, and 28
374373 financial responsibility of the license applicant. 29
375374 (b) The director shall also determine the suitability or unsuitability 30
376375 of the applicant's proposed office location. 31
377376 (c) An application for an employment agency's, agency manager's, or 32
378377 employment counselor's license shall be rejected by the director if it is 33
379378 found that any person named in the license application is not of good moral 34
380379 character, business integrity, or financial responsibility or if there is 35
381380 good and sufficient reason within the meaning and purpose of this subchapter 36 SB278
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384383 for rejecting the application. 1
385384 2
386385 11-11-215. Employment agency license — Scope — Change of license. 3
387386 (a)(1) An employment agent's license issued pursuant to this 4
388387 subchapter shall protect only those persons to whom it is issued and only the 5
389388 location for which it is issued. 6
390389 (2) A separate license shall be required for each separate 7
391390 office location operated by an employment agency. 8
392391 (3) No license shall be valid to protect any business transacted 9
393392 under any name other than that designated in the license. 10
394393 (b) No employment agent shall permit any person not mentioned in the 11
395394 license or license application to become a member, officer, director, 12
396395 shareholder, or partner in the conduct of the business of the employment 13
397396 agent unless written consent of the Director of the Division of Labor and 14
398397 written consent of the surety on the bond required by this subchapter shall 15
399398 first be obtained. 16
400399 (c) The location of an employment agency shall not be changed without 17
401400 written consent from the Director of the Division of Labor, and a new license 18
402401 application shall be required for any change of office location in excess of 19
403402 twenty-five (25) miles. 20
404403 (d) A charge of ten dollars ($10.00) shall be made by the Division of 21
405404 Labor for the recording of authorization for each change of office location 22
406405 authorized by this section. 23
407406 24
408407 11-11-216. Examination for licenses. 25
409408 (a)(1)(A) Before the Director of the Division of Labor issues a 26
410409 license to an applicant for a permanent employment agent's, permanent agency 27
411410 manager's, or permanent counselor's license, the applicant shall be required 28
412411 to successfully complete a written examination prepared by the director. 29
413412 (B) The examination shall establish the competency of the 30
414413 applicant to: 31
415414 (i) Operate and conduct an employment agency; or 32
416415 (ii) Perform service as an agency manager or counselor for 33
417416 the agency. 34
418417 (2) No examination shall be required for renewal of any license 35
419418 issued pursuant to this subchapter unless the license has been suspended, 36 SB278
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422421 revoked, or submitted late, causing the application to be treated as a new 1
423422 application. 2
424423 (b) The Division of Labor shall hold examinations at such times and 3
425424 places as it shall reasonably determine, except that examinations shall be 4
426425 given to license applicants at least once every sixty (60) days. 5
427426 (c)(1) An examination fee of five dollars ($5.00) shall be paid by 6
428427 each applicant in addition to the license fee. 7
429428 (2) The examination fee shall be retained by the division, 8
430429 whether or not the applicant successfully completes the examination. 9
431430 (3) The examination fee shall be forfeited if the applicant does 10
432431 not take the examination within three (3) months of the application date. 11
433432 12
434433 11-11-217. License fees. 13
435434 (a) Before a permanent license shall be granted to a license 14
436435 applicant, an applicant shall pay the following annual fee for each license: 15
437436 (1) Two hundred fifty dollars ($250) for an employment agency; 16
438437 (2) Twenty-five dollars ($25.00) for an employment agency 17
439438 manager; and 18
440439 (3) Twenty dollars ($20.00) for an employment counselor. 19
441440 (b) Multiple licenses for a person simultaneously performing the 20
442441 functions of employment agent, agency manager, or employment counselor will 21
443442 not be required. The person shall procure a license commensurate with the 22
444443 highest level of job duties and responsibilities customarily and regularly 23
445444 performed by the person. 24
446445 (c) All moneys received from licensing shall be deposited into the 25
447446 general fund of the State Treasury. 26
448447 27
449448 11-11-218. Temporary licenses. 28
450449 (a)(1) The Director of the Division of Labor shall have authority to 29
451450 issue a temporary license for operation of a private employment agency, which 30
452451 shall be valid for no more than ninety (90) days, upon submission by the 31
453452 applicant for the license of: 32
454453 (A) A properly completed application form furnished and 33
455454 approved by the director; 34
456455 (B) Submission of evidence of the applicant's compliance 35
457456 with the bonding requirements of this subchapter; and 36 SB278
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460459 (C) Payment of a temporary license fee of one hundred 1
461460 dollars ($100). 2
462461 (2) The temporary license may be issued only if, after 3
463462 investigation, it reasonably appears that the applicant will meet the 4
464463 qualifications for a permanent private employment agency license. 5
465464 (b)(1) The director shall have authority to issue temporary licenses 6
466465 for agency managers and employment counselors, which shall be valid for no 7
467466 more than ninety (90) days, upon submission by the applicant for such license 8
468467 of: 9
469468 (A) A properly completed application form, furnished and 10
470469 approved by the director; and 11
471470 (B) Payment of a temporary license fee of ten dollars 12
472471 ($10.00). 13
473472 (2) The temporary licenses for agency managers and employment 14
474473 counselors may be issued only if, after investigation, it reasonably appears 15
475474 that the applicant will meet the qualifications for a permanent license as 16
476475 agency manager or employment counselor. 17
477476 (3) Temporary licenses issued to agency managers and employment 18
478477 counselors are nontransferable and are automatically rescinded upon 19
479478 suspension or termination of the employment of the agency manager or 20
480479 employment counselor. 21
481480 (4) The director shall approve or reject an application for a 22
482481 temporary agency manager's license or temporary employment counselor's 23
483482 license within five (5) days after receipt of a properly completed 24
484483 application for the license. 25
485484 26
486485 11-11-219. Renewal of licenses. 27
487486 (a) Every license issued pursuant to this subchapter shall remain in 28
488487 force for one (1) year from the date of issue or until the end of the state's 29
489488 fiscal year, whichever occurs first, unless the license has been revoked 30
490489 pursuant to the provisions of this subchapter. 31
491490 (b) Applications for renewal of all licenses provided by this 32
492491 subchapter must be filed with the Director of the Division of Labor no later 33
493492 than thirty (30) days prior to expiration of the license. 34
494493 (c) Any licensee who fails to renew a license by the expiration date 35
495494 shall be automatically suspended from the right to engage in the activity 36 SB278
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498497 authorized by the license until the license is renewed. 1
499498 (d) Every application for renewal of a license must be accompanied by 2
500499 payment of the required license fee and evidence of compliance with the 3
501500 bonding requirements of this subchapter. 4
502501 5
503502 11-11-220. Cessation of business by licensee. 6
504503 (a)(1) If an employment agent ceases business operations, the agent 7
505504 shall, as soon as reasonably possible, notify the Division of Labor and shall 8
506505 deliver or forward by mail the agent's license to the division. Failure to 9
507506 give notice, or failure to deliver such employment agent's license, shall be 10
508507 a violation of § 11-11-208. 11
509508 (2)(A) When one (1) or more individuals, on the basis of whose 12
510509 qualifications an agency license has been obtained, ceases to be connected 13
511510 with the licensed business for any reason whatsoever, the agency business may 14
512511 be carried on for a temporary period not to exceed thirty (30) days, under 15
513512 such terms and conditions as the Director of the Division of Labor shall 16
514513 provide by rule for the orderly closing of the business or the replacement 17
515514 and qualification of a new member, partner, or corporate officer, director, 18
516515 or shareholder. 19
517516 (B) The agency's authorization to continue to do business 20
518517 under this subchapter beyond the thirty -day period provided in this 21
519518 subdivision (a)(2) shall be contingent upon approval by the Director of the 22
520519 Division of Labor of any new member, principal, partner, officer, director, 23
521520 or shareholder. 24
522521 (b)(1) If an agency manager terminates his or her employment with an 25
523522 employment agency by which he or she is employed, the agency shall notify the 26
524523 division, as soon as is reasonably possible, to enable the division to know 27
525524 at all times the identity of the person charged with the general management 28
526525 of each of the agency's office locations. 29
527526 (2) The employment agency shall also deliver or forward by mail 30
528527 the agency manager's license, together with the reasons why the agency 31
529528 manager has terminated his or her position with the employment agency. 32
530529 (c) If an employment counselor terminates his or her employment with 33
531530 the employment agency by which he or she is employed, the agency shall, as 34
532531 soon as is reasonably possible, notify the division and deliver or forward by 35
533532 mail the employment counselor's license to the division, together with the 36 SB278
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536535 reasons for his or her termination. 1
537536 2
538537 11-11-221. Issuance, refusal, suspension, or revocation of license — 3
539538 Grounds. 4
540539 (a) The Director of the Division of Labor shall issue a license as an 5
541540 employment agent, agency manager, or counselor to any person who qualifies 6
542541 for the license under the terms of this subchapter. 7
543542 (b) The director may, in addition, refuse to issue a license to any 8
544543 person or may suspend or revoke the license of any employment agent, agency 9
545544 manager, or employment counselor or impose administrative fines as provided 10
546545 for in § 11-11-203 when the director finds that any of the following 11
547546 conditions exist: 12
548547 (1) That the employment agent, agency manager, or counselor has 13
549548 violated any of the provisions of this subchapter; 14
550549 (2) That the employment agent, agency manager, or counselor has 15
551550 violated any of the rules or other orders lawfully promulgated by the 16
552551 director; 17
553552 (3) That the employment agent, agency manager, or counselor has 18
554553 violated the conditions of the bond required by § 11 -11-213; 19
555554 (4) That the person, employment agent, agency manager, or 20
556555 employment counselor has engaged in a fraudulent, deceptive, or dishonest 21
557556 practice; 22
558557 (5) That the person, employment agent, agency manager, or 23
559558 employment counselor has been legally adjudicated incompetent; or 24
560559 (6) That the applicant is for good and sufficient cause unfit to 25
561560 be an employment agent, agency manager, or employment counselor within the 26
562561 meaning of this subchapter or of any of the rules or orders lawfully 27
563562 promulgated by the director. 28
564563 (c) This section and § 11 -11-222 shall not be construed to relieve any 29
565564 person from civil liability or from criminal prosecution under the provisions 30
566565 of this subchapter or under other laws of this state. 31
567566 32
568567 11-11-222. Refusal, suspension, or revocation of license — Notice and 33
569568 hearing. 34
570569 (a)(1) The Director of the Division of Labor may not refuse to issue a 35
571570 license or suspend or revoke a license unless it furnishes the person, 36 SB278
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574573 employment agent, agency manager, or employment counselor with a written 1
575574 statement of the charges against him or her and affords him or her an 2
576575 opportunity to be heard on the charges. 3
577576 (2) At the time that written charges are furnished to an 4
578577 employment agency, the director shall make available to the agency a signed 5
579578 written statement by any individual having filed a complaint with the 6
580579 director relative to the matter for which charges have been filed by the 7
581580 director. 8
582581 (3) The agency shall be given at least twenty (20) days’ written 9
583582 notice of the date and time of the hearing. The notice shall conform to the 10
584583 standards for notices set forth in the Arkansas Administrative Procedure Act, 11
585584 § 25-15-201 et seq. 12
586585 (4) The notice shall be sent by certified mail, return receipt 13
587586 requested, to the address of the person as shown on his or her application 14
588587 for license, or it may be served in the manner in which a summons is served 15
589588 in civil cases commenced in the circuit courts of this state. 16
590589 (b)(1) At the time and place fixed for the hearing, the director shall 17
591590 hold the hearing and thereafter make his or her order either dismissing the 18
592591 charges or refusing, suspending, or revoking the license. 19
593592 (2)(A) At the hearing, the accused shall have the right to 20
594593 appear personally and by counsel and to cross -examine witnesses against him 21
595594 or her. 22
596595 (B)(i) He or she shall be allowed to produce evidence and 23
597596 witnesses in his or her defense and shall have the right to have witnesses 24
598597 subpoenaed. 25
599598 (ii) The subpoenas shall be issued by the director. 26
600599 (c)(1) A stenographic record of all proceedings shall be made, and a 27
601600 transcript of the proceedings shall be made if desired by the Division of 28
602601 Labor or by the accused. 29
603602 (2) The transcript shall be paid for by the party ordering it. 30
604603 31
605604 11-11-223. Judicial review of director's administrative orders. 32
606605 (a) If the Director of the Division of Labor refuses to grant a 33
607606 license, suspends or revokes a license that has been granted, or imposes an 34
608607 administrative fine as provided in §§ 11 -11-213, 11-11-221, and 11-11-222, 35
609608 the person adversely affected or aggrieved by the order of the director 36 SB278
610609
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612611 issued pursuant to the provisions of §§ 11 -11-221 and 11-11-222 may obtain a 1
613612 review of the order. 2
614613 (b) The order may be brought in the circuit court in the judicial 3
615614 district in which the violation is alleged to have occurred, where the 4
616615 employment agent, manager, or counselor worked, or in the Pulaski County 5
617616 Circuit Court or, if the aggrieved person is a nonresident of the state, in 6
618617 the Pulaski County Circuit Court. 7
619618 (c)(1) The review may be obtained by filing in the court within thirty 8
620619 (30) days following the issuance of the order a written petition praying that 9
621620 the order be modified or set aside. 10
622621 (2)(A) A copy of the petition shall be forthwith transmitted by 11
623622 the clerk of the court to the Division of Labor. 12
624623 (B) Thereupon, the division shall file in the court the 13
625624 record of proceedings before the division. 14
626625 (d) Upon the filing, the court shall have jurisdiction of the 15
627626 proceedings and of the questions determined therein and shall have power to 16
628627 grant such temporary relief or restraining order as it deems just and proper 17
629628 and to make and enter upon the pleadings, testimony, and proceedings set 18
630629 forth in the record a decree affirming, modifying, or setting aside, in whole 19
631630 or in part, the order of the director and enforcing the same to the extent 20
632631 that the order is affirmed. 21
633632 (e) Commencement of proceedings under this section shall not, unless 22
634633 ordered by the court, operate as a stay of the order of the director. 23
635634 (f)(1) No objection which has not been urged before the director shall 24
636635 be considered by the court. 25
637636 (2) The findings of the director with respect to questions of 26
638637 fact, if supported by substantial evidence on the record considered as a 27
639638 whole, shall be conclusive. 28
640639 (g)(1) If any party shall apply to the court for leave to adduce 29
641640 additional evidence and shall show to the satisfaction of the court that the 30
642641 additional evidence is material and that there were reasonable grounds for 31
643642 the failure to adduce the evidence in the hearing before the director, the 32
644643 court may order the additional evidence to be taken before the director and 33
645644 made a part of the record. 34
646645 (2)(A) The director may modify his or her findings as to the 35
647646 facts or make new findings, by reason of additional evidence so taken and 36 SB278
648647
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650649 filed, and the director shall file the modified or new findings with the 1
651650 court. 2
652651 (B) The findings with respect to questions of fact, if 3
653652 supported by substantial evidence on the record considered as a whole, shall 4
654653 be conclusive. 5
655654 (h) Upon the filing of the record with it, the jurisdiction of the 6
656655 court shall be exclusive, and its judgment and decree shall be final, except 7
657656 that it shall be subject to review by the Supreme Court. 8
658657 (i)(1) The division shall certify the record of its proceedings if the 9
659658 party commencing the proceedings shall pay to it the cost of preparing and 10
660659 certifying the records, including the recording and transcribing of all 11
661660 testimony introduced in the proceedings. 12
662661 (2) If payment of the costs of preparing and certifying the 13
663662 records, including the recording and transcribing of all testimony introduced 14
664663 in the proceedings, is not made by the party commencing the proceedings for 15
665664 review within ten (10) days after notice from the division of the cost of 16
666665 preparing and certifying the record, the circuit court in which the 17
667666 proceeding is pending, on motion of the director, shall dismiss the petition. 18
668667 19
669668 11-11-224. Deceptive practices. 20
670669 (a) No employment agent shall publish or cause to be published any 21
671670 fraudulent or misleading notice or advertisement of the employment agency by 22
672671 means of cards, circulars, or signs or in newspapers or other publications. 23
673672 (b) All letterheads, receipts, and blanks shall contain the full name 24
674673 and address of the employment agency, and the licensee shall state in all 25
675674 notices and advertisements the fact that the licensee is or conducts a 26
676675 private employment agency. 27
677676 (c) No employment agency shall print, publish, or paint on any sign or 28
678677 window or insert in any newspaper or publication a name similar to that of 29
679678 the Arkansas State Employment Service or any other governmental agency. 30
680679 (d) No employment agency shall print or stamp on any receipt or on any 31
681680 contract used by the agency any part of this subchapter unless the entire 32
682681 section from which the part is taken is printed or stamped thereon. 33
683682 (e) No employment agency shall allow any person in its employment to 34
684683 use any names other than their legal names in the course of and in respect to 35
685684 their employment with the agency. 36 SB278
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688687 (f) No employment agency or its employees or agents shall give any 1
689688 information or make any representation to any applicant, where the agency or 2
690689 its employees or agents know or reasonably should know that the information 3
691690 or representation is false. 4
692691 (g) No employment agency or its employees or agents shall knowingly 5
693692 withhold from a job applicant any information material to a job to which that 6
694693 applicant is referred. 7
695694 (h) No employment agent or its agents or employees shall engage in any 8
696695 conduct in the course of its business that constitutes a fraudulent, 9
697696 dishonest, or deceptive practice, whether or not the conduct is prohibited by 10
698697 this subchapter. 11
699698 (i) No contracts, forms, or schedules used by employment agencies in 12
700699 their dealings with the public shall contain any false, ambiguous, or 13
701700 misleading information. 14
702701 15
703702 11-11-225. Miscellaneous restrictions and requirements. 16
704703 In addition to other provisions of this subchapter, the following 17
705704 provisions shall govern each and every employment agency: 18
706705 (1) Every employment agent or agency shall display his, her, or 19
707706 its license in a conspicuous place in the main office of the agency. Managers 20
708707 and counselors shall display their licenses in a conspicuous place in their 21
709708 offices or work areas; 22
710709 (2)(A) All advertising by an employment agency of any form or 23
711710 kind shall include the words “employment agency” or “personnel agency”. 24
712711 (B) Advertising for an employment position with the agency 25
713712 itself shall clearly convey the information that the job position offered is 26
714713 with the employment agency publishing the advertisement; 27
715714 (3) No employment agency or its agents or employees shall 28
716715 receive or require any applicant to execute any power of attorney, assignment 29
717716 of wages or salary, or note authorizing the confession of judgment; 30
718717 (4) No employment agent, by himself or herself, or by his or her 31
719718 agents or employees, shall solicit, persuade, or induce any employee to leave 32
720719 any employment in which the employment agent or his or her agent has placed 33
721720 the employee, nor shall any employment agency or any of its agents or 34
722721 employees solicit, persuade, or induce any employer to discharge any 35
723722 employee, nor shall any employment agent, or his or her agents or employees, 36 SB278
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726725 divide or offer to divide or share directly or indirectly any fee, charge, or 1
727726 compensation received, or to be received, from an employee with any employer 2
728727 or persons in any way connected with the business thereof; 3
729728 (5)(A) No employment agent by himself or herself or by his or 4
730729 her agents or employees shall give or promise to give anything of intrinsic 5
731730 value to any employer or applicant for employment as an inducement to use the 6
732731 services of his or her employment agency. 7
733732 (B) No fee shall be solicited or accepted as an 8
734733 application or registration fee by an employment agent for the purpose of 9
735734 registering any person as an applicant for employment; 10
736735 (6) No employment agency or its agents or employees shall 11
737736 advertise or make a referral for any job position without having first 12
738737 obtained a bona fide job order therefor; 13
739738 (7) No employment agency or its agents or employees shall refer 14
740739 an applicant for a job or job interview unless the applicant has been 15
741740 personally interviewed by the employment agency or its agents or employees or 16
742741 has corresponded with the employment agency with the specific purpose of 17
743742 securing employment through that employment agency; 18
744743 (8)(A) Every employment agency shall inform the public by a 19
745744 conspicuous sign or poster that the employment agency is subject to the 20
746745 requirements of this subchapter, which is administered and enforced by the 21
747746 Division of Labor. 22
748747 (B) The division shall prepare and distribute the sign or 23
749748 poster to be used by agencies to comply with this subdivision (8); 24
750749 (9) No employment agency or its agents or employees shall 25
751750 knowingly send an applicant to any place where a strike, lockout, or other 26
752751 labor dispute exists; 27
753752 (10) No agency shall use any trade name or business identity 28
754753 similar to, or reasonably likely to be confused with, the trade name or 29
755754 business identity of an existing agency or any governmental nonprofit 30
756755 employment agency; 31
757756 (11) No employment agency shall refer an applicant to a 32
758757 situation, employment, or occupation prohibited by law; 33
759758 (12) No employment agency shall charge a fee to an employee for 34
760759 any services other than actual placement of an applicant; 35
761760 (13) No employment agency shall charge an applicant a fee for 36 SB278
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764763 accepting employment with the employment agency or any subsidiary of that 1
765764 agency; 2
766765 (14) Any information regarding an applicant's background or 3
767766 credit, from whatever source obtained, shall be used for no purpose other 4
768767 than assisting the applicant in securing employment. However, an employment 5
769768 agency may use background and credit information regarding an applicant in 6
770769 determining whether to conduct placement services for the applicant if the 7
771770 applicant gives written authorization for securing the information and 8
772771 understands the purpose for which the information is secured; 9
773772 (15) No employment agency or its agents or employees shall 10
774773 engage in any practice that discriminates against any person on the basis of 11
775774 race, color, sex, age, religion, or national origin; 12
776775 (16) Under no circumstances shall more than one (1) fee for any 13
777776 one (1) placement be charged any applicant; 14
778777 (17) No contracts, forms, or schedules used by employment 15
779778 agencies shall contain any provisions in conflict with the provisions of this 16
780779 subchapter; and 17
781780 (18) All refunds due shall be made by the agency by cash, check, 18
782781 or money order promptly when due. 19
783782 20
784783 11-11-226. Designation of manager required. 21
785784 (a) Every employment agency shall designate an agency manager at each 22
786785 office location of that agency, who shall be responsible for the general 23
787786 management, administration, and operation of that office location. 24
788787 (b) The agency manager must comply with the licensing requirements of 25
789788 §§ 11-11-210 — 11-11-212, 11-11-214, 11-11-217, 11-11-218, 11-11-220(a)(1) 26
790789 and (b), and 11-11-226. 27
791790 (c) Every employment agency must maintain an agency manager at each of 28
792791 its office locations. 29
793792 30
794793 11-11-227. Fee restrictions and requirements. 31
795794 (a) When employment lasts less than ninety (90) calendar days, 32
796795 regardless of the reason, no employment agency may charge an employee a fee 33
797796 of more than one-ninetieth (1/90th) of the permanent placement fee for each 34
798797 calendar day of the employment. Under no circumstances shall the fee exceed 35
799798 twenty percent (20%) of an employee's actual gross earnings if employment 36 SB278
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802801 lasts less than thirty (30) days or forty percent (40%) of an employee's 1
803802 actual gross earnings if employment lasts more than thirty (30) days but less 2
804803 than ninety (90) days. 3
805804 (b)(1) When a promissory note is used by the agency, it shall be 4
806805 clearly identified as such and shall not be executed until the placement is 5
807806 made. 6
808807 (2) The defense of no or insufficient consideration shall be 7
809808 good as against a holder of any such employment agency fee note. 8
810809 (c)(1) When a dispute concerning a fee exists, the Division of Labor 9
811810 may conduct an investigation to determine all of the facts concerning the 10
812811 dispute. Thereafter, the Director of the Division of Labor shall issue a 11
813812 decision and order resolving the dispute. 12
814813 (2) Any person aggrieved by this decision and order may obtain 13
815814 review of this decision and order pursuant to § 11 -11-222. 14
816815 (d)(1) Any schedule of fees to be charged by an employment agency for 15
817816 its services shall be furnished to all applicants upon making application 16
818817 with the agency. 17
819818 (2)(A) The forms, fee schedules, and contracts utilized by an 18
820819 employment agency shall contain no ambiguous, false, or misleading 19
821820 information. 20
822821 (B) No contract or fee schedule shall contain smaller than 21
823822 eight-point type. 22
824823 (e)(1) All fee schedules used in the business of an employment agency 23
825824 must be furnished to job applicants and fee -paying employers and shall state 24
826825 in dollars and cents the amount of any fee charged by the agency for its 25
827826 services. 26
828827 (2) Percentages shall not be used by agencies in schedules of 27
829828 fees to be charged for their services, except when the annual salary for a 28
830829 job is twelve thousand dollars ($12,000) or more. 29
831830 (f) It shall be unlawful for any employment agency to impose, enforce, 30
832831 collect, or receive a fee for performance of any service for a job applicant, 31
833832 or for a prospective employer, unless the agency makes every reasonable 32
834833 effort to disclose the exact dollar amount of the fee to the applicant or 33
835834 prospective employer prior to commencement of employment of an applicant by 34
836835 an employer. 35
837836 (g) Nothing in this section or this subchapter shall be construed to 36 SB278
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840839 prohibit an employment agency from contracting with an employer on a fee -paid 1
841840 basis to pay the fee for the placement services for an employee without an 2
842841 actual job placement or to prohibit an agency from charging a fee to an 3
843842 employer for a retained services contract to search for applicants for an 4
844843 employer without an actual job placement. 5
845844 6
846845 11-11-228. Filing of fee schedule, forms, and contracts required. 7
847846 (a) It shall be the duty of every employment agency to file with the 8
848847 Division of Labor a schedule of all fees, charges, and commissions that the 9
849848 agency expects to charge and collect for its service, together with a copy of 10
850849 all forms and contracts to be used in dealings with the public in the 11
851850 operation of its business. 12
852851 (b) The fee schedules, contracts, and forms shall be filed with the 13
853852 division on the date of the agency's application for initial or renewal 14
854853 licensing under this subchapter. 15
855854 (c) Any amendments or supplements to fee schedules, contracts, or 16
856855 forms filed with the division must be filed at least fifteen (15) days before 17
857856 the amendment or supplement is to become effective. 18
858857 (d) It shall be unlawful for any employment agency to charge, demand, 19
859858 collect, or receive a greater compensation for any service performed by the 20
860859 agency than is specified in fee schedules filed with the division or than is 21
861860 specified by this subchapter. 22
862861 23
863862 11-11-229. Records required. 24
864863 (a) It shall be the duty of every employment agency to keep a complete 25
865864 record of all orders for employees that are received from prospective 26
866865 employers. This record shall contain the date when the order was received, 27
867866 the name and address of the employer seeking the services of an employee, the 28
868867 name of the individual placing the order, the duties of the position to be 29
869868 filled, the qualifications required of the employee, the salary or wages to 30
870869 be paid, and the probable duration of the job. 31
871870 (b) It shall be the duty of every employment agency to keep a complete 32
872871 record of each applicant who is referred by the agency to an employer for a 33
873872 job interview. This record shall contain the date when the applicant was 34
874873 referred to a prospective employer for a job or interview, the name of the 35
875874 applicant, and the name of the firm to whom the applicant is referred. 36 SB278
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878877 (c)(1) It shall be the duty of every employment agency to keep a 1
879878 complete register called a “business transaction record”, which shall consist 2
880879 of the name of the individual placed, the date of the placement, the name of 3
881880 the employer, the starting date of the position, the starting salary, the 4
882881 amount of the fee charged, and the remarks column. 5
883882 (2) The remarks column will state the amount of any adjustment 6
884883 or refund made. 7
885884 (d)(1) Prior to referral of any person to a job or interview or prior 8
886885 to placement of any job advertisement, an employment agency must have a 9
887886 current bona fide job order. 10
888887 (2) It shall be the duty of every employment agency to maintain 11
889888 a copy of any job advertisement and the job order pertaining to any 12
890889 advertisement in a readily available record. 13
891890 (e) All of the records listed in this section shall be kept in the 14
892891 employment agency office and shall be open during office hours to inspection 15
893892 by the Division of Labor and its duly authorized agents. 16
894893 (f) No employment agent or his or her employee shall knowingly make 17
895894 any false entry or omission in the records. 18
896895 19
897896 SECTION 2. Arkansas Code § 19 -6-201(17), concerning the enumeration of 20
898897 general revenues of the state, is repealed. 21
899898 (17) Employment agency licenses, as enacted by Acts 1975, No. 22
900899 493, known as the “Arkansas Private Employment Agency Act of 1975”, and all 23
901900 laws amendatory thereto, § 11 -11-201 et seq.; 24
902901 25
903902 26
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905904 28
906905 29
907906 30
908907 31
909908 32
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911910 34
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913912 36