3 | 2 | | *LGL103* 02/21/2025 3:52:17 PM LGL103 |
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4 | 3 | | State of Arkansas 1 |
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5 | 4 | | 95th General Assembly A Bill 2 |
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6 | 5 | | Regular Session, 2025 SENATE BILL 278 3 |
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7 | 6 | | 4 |
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8 | 7 | | By: Senator J. English 5 |
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9 | 8 | | By: Representative S. Meeks 6 |
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10 | 9 | | 7 |
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11 | 10 | | For An Act To Be Entitled 8 |
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12 | 11 | | AN ACT TO REPEAL THE STATUTES CONCERNING THE 9 |
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13 | 12 | | OCCUPATIONAL AUTHORIZATION AND LICENSURE OF PRIVATE 10 |
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14 | 13 | | EMPLOYMENT AGENCIES, EMPLOYMENT COUNSELORS, AND 11 |
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15 | 14 | | EMPLOYMENT AGENCY MANAGERS; TO REPEAL THE ARKANSAS 12 |
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16 | 15 | | PRIVATE EMPLOYMENT AGENCY ACT OF 1975; AND FOR OTHER 13 |
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17 | 16 | | PURPOSES. 14 |
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18 | 17 | | 15 |
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19 | 18 | | 16 |
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20 | 19 | | Subtitle 17 |
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21 | 20 | | TO REPEAL THE STATUTES CONCERNING THE 18 |
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22 | 21 | | OCCUPATIONAL AUTHORIZATION AND LICENSURE 19 |
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23 | 22 | | OF CERTAIN EMPLOYMENT OFFICES AND 20 |
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24 | 23 | | AGENCIES; AND TO REPEAL THE ARKANSAS 21 |
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25 | 24 | | PRIVATE EMPLOYMENT AGENCY ACT OF 1975. 22 |
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26 | 25 | | 23 |
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27 | 26 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 |
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28 | 27 | | 25 |
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29 | 28 | | SECTION 1. Arkansas Code Title 11, Chapter 11, is repealed. 26 |
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30 | 29 | | 27 |
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31 | 30 | | CHAPTER 11 — EMPLOYMENT OFFICES AND AGENCIES 28 |
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32 | 31 | | 29 |
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33 | 32 | | Subchapter 1 — General Provisions 30 |
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34 | 33 | | 31 |
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35 | 34 | | 11-11-101. Recruitment of labor by foreign labor agents. 32 |
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36 | 35 | | (a) No foreign labor agent, labor bureau or employment agency, or any 33 |
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37 | 36 | | other person shall enter this state and attempt to hire, induce, or take from 34 |
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38 | 37 | | this state any labor, singularly or in groups, for any purpose, whether or 35 |
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39 | 38 | | not a fee or charge is extracted from the worker, without first applying to 36 SB278 |
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40 | 39 | | |
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41 | 40 | | 2 02/21/2025 3:52:17 PM LGL103 |
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42 | 41 | | the Director of the Division of Labor for a license to do so and filing with 1 |
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43 | 42 | | the director: 2 |
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44 | 43 | | (1) A statement as to where the labor is to be taken, for what 3 |
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45 | 44 | | purpose, for what length of time, and whether transportation is to be paid to 4 |
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46 | 45 | | and from the destination, if temporary; 5 |
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47 | 46 | | (2) A statement of the financial standing of the employer 6 |
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48 | 47 | | desiring the labor; 7 |
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49 | 48 | | (3) An affidavit of authority to represent the employer in this 8 |
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50 | 49 | | state; and 9 |
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51 | 50 | | (4) Whatever other information the director may require. 10 |
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52 | 51 | | (b)(1) The director shall determine whether the person desiring the 11 |
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53 | 52 | | labor from this state is a labor agent, labor bureau, or employment agency 12 |
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54 | 53 | | and, if so, whether the applicant is qualified to be licensed under the laws 13 |
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55 | 54 | | of this state and according to the provisions of this section. 14 |
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56 | 55 | | (2) The director, after the investigation, may refuse to license 15 |
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57 | 56 | | or register the applicant until the applicant has complied with the 16 |
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58 | 57 | | provisions of this section. 17 |
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59 | 58 | | (3) The applicant shall, in the event of unfavorable action by 18 |
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60 | 59 | | the director, have the right of appeal to the proper court. 19 |
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61 | 60 | | (c) This section is cumulative to all existing laws affecting the 20 |
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62 | 61 | | hiring or employment of labor. 21 |
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63 | 62 | | 22 |
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64 | 63 | | Subchapter 2 — Private Employment Agencies 23 |
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65 | 64 | | 24 |
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66 | 65 | | 11-11-201. Title. 25 |
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67 | 66 | | This subchapter may be cited as the “Arkansas Private Employment Agency 26 |
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68 | 67 | | Act of 1975”. 27 |
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69 | 68 | | 28 |
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70 | 69 | | 11-11-202. Definitions. 29 |
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71 | 70 | | As used in this subchapter, unless the context otherwise requires: 30 |
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72 | 71 | | (1) “Agency manager” means the individual designated by the 31 |
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73 | 72 | | employment agency to conduct the general management, administration, and 32 |
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74 | 73 | | operation of a designated employment agency office. Every employment agency 33 |
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75 | 74 | | must maintain a licensed agency manager at each of its separate office 34 |
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76 | 75 | | locations; 35 |
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77 | 76 | | (2) “Applicant” except when used to describe an applicant for an 36 SB278 |
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78 | 77 | | |
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80 | 79 | | employment agency or agency manager's or counselor's license means any 1 |
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81 | 80 | | person, whether employed or unemployed, seeking or entering into an 2 |
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82 | 81 | | arrangement for employment or change of employment through the medium or 3 |
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83 | 82 | | service of an employment agency; 4 |
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84 | 83 | | (5) “Employee” means a person performing or seeking to perform 5 |
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85 | 84 | | work or service of any kind or character for compensation; 6 |
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86 | 85 | | (6) “Employer” means a person employing or seeking to employ a 7 |
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87 | 86 | | person for compensation; 8 |
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88 | 87 | | (7)(A) “Employment agent” or “employment agency” means any 9 |
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89 | 88 | | person engaged for hire, compensation, gain, or profit in the business of 10 |
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90 | 89 | | furnishing persons seeking employment with information or other service 11 |
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91 | 90 | | enabling the persons to procure employment by or through employers or 12 |
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92 | 91 | | furnishing any other person who may be seeking to employ or may be in the 13 |
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93 | 92 | | market for help of any kind with information enabling the other person to 14 |
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94 | 93 | | procure help. 15 |
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95 | 94 | | (B) However, “employment agent” or “employment agency” 16 |
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96 | 95 | | does not mean: 17 |
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97 | 96 | | (i) Any person who prepares resumes for individuals 18 |
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98 | 97 | | for employment purposes if the person who prepares the resumes does not refer 19 |
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99 | 98 | | or purport to refer prospective employees to employers or employers to 20 |
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100 | 99 | | prospective employees, does not represent himself or herself as an employment 21 |
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101 | 100 | | agency, or does not have any financial connection with any employment agency; 22 |
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102 | 101 | | (ii) Any person who employs individuals to render 23 |
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103 | 102 | | part-time or temporary services to, for, or under the direction of a third 24 |
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104 | 103 | | person if the person employing the individuals, in addition to paying wages 25 |
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105 | 104 | | or salaries, pays federal Social Security taxes and state and federal 26 |
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106 | 105 | | unemployment insurance and secures work -service to, for, or under the 27 |
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107 | 106 | | direction of a third person; 28 |
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108 | 107 | | (iii) Any bona fide nursing school, nurses' 29 |
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109 | 108 | | registry, management consulting firm, business school, or vocational school 30 |
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110 | 109 | | whose primary function and purpose is training and education, except that if 31 |
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111 | 110 | | such an organization charges a fee, directly or indirectly, for job placement 32 |
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112 | 111 | | of individuals, the organization shall be an employment agency within the 33 |
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113 | 112 | | meaning of this subchapter; 34 |
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114 | 113 | | (iv) A labor organization; 35 |
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115 | 114 | | (v) Any person who publishes advertisements placed 36 SB278 |
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116 | 115 | | |
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118 | 117 | | and paid for by a third person seeking employment or an employee, provided 1 |
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119 | 118 | | that the person does not procure or offer to procure employment or employees; 2 |
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120 | 119 | | or 3 |
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121 | 120 | | (vi) Any person who contracts with an employer to 4 |
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122 | 121 | | recruit employees for the employer without charge to the prospective 5 |
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123 | 122 | | employee; 6 |
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124 | 123 | | (8) “Employment counselor” means an employee of any employment 7 |
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125 | 124 | | agency who interviews, counsels, or advises applicants or employers, or both, 8 |
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126 | 125 | | on employment or allied problems or who makes or arranges contracts or 9 |
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127 | 126 | | contacts between employers and employees. The term “employment counselor” 10 |
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128 | 127 | | includes employees who solicit orders for employees from prospective 11 |
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129 | 128 | | employers; 12 |
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130 | 129 | | (9) “Fee” shall mean anything of value, including any money or 13 |
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131 | 130 | | other valuable consideration exacted, charged, collected, or received, 14 |
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132 | 131 | | directly or indirectly, or paid or contracted to be paid for any services or 15 |
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133 | 132 | | act by an employment agency; and 16 |
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134 | 133 | | (10) “Person” means any individual, company, firm, association, 17 |
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135 | 134 | | partnership, or corporation. 18 |
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136 | 135 | | 19 |
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137 | 136 | | 11-11-203. Penalty. 20 |
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138 | 137 | | (a) The Director of the Division of Labor shall have authority to 21 |
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139 | 138 | | impose a fine of not less than twenty -five dollars ($25.00) nor more than 22 |
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140 | 139 | | five hundred dollars ($500) for violation of the provisions of this 23 |
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141 | 140 | | subchapter by an employment agency or its employees or agents. 24 |
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142 | 141 | | (b) The director shall notify the employment agency in writing of the 25 |
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143 | 142 | | reasons for imposition of a fine and at that time shall make available to the 26 |
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144 | 143 | | employment agency a signed written statement by any individual having filed a 27 |
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145 | 144 | | complaint with the director relative to the matter for which a fine has been 28 |
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146 | 145 | | imposed by the director. 29 |
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147 | 146 | | (c) The agency shall have the right to a hearing before the director 30 |
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148 | 147 | | and the right to judicial review provided by § 11 -11-223 with respect to the 31 |
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149 | 148 | | fine. 32 |
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150 | 149 | | 33 |
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151 | 150 | | 11-11-204. Director and division — Powers and duties. 34 |
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152 | 151 | | (a) It shall be the duty of the Division of Labor, and it shall have 35 |
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153 | 152 | | the power, jurisdiction, and authority to administer and enforce the 36 SB278 |
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154 | 153 | | |
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156 | 155 | | provisions of this subchapter. 1 |
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157 | 156 | | (b) The Director of the Division of Labor shall have the power, 2 |
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158 | 157 | | jurisdiction, and authority to issue licenses to employment agencies, agency 3 |
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159 | 158 | | managers, and counselors and to refuse to issue, revoke, or suspend the 4 |
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160 | 159 | | licenses when, after due investigation, and in compliance with the procedures 5 |
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161 | 160 | | set forth in §§ 11-11-221 and 11-11-222, the director finds that the 6 |
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162 | 161 | | applicant is for good and sufficient cause unfit to be an employment agent, 7 |
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163 | 162 | | agency manager, or counselor within the meaning of this subchapter or any 8 |
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164 | 163 | | rules or orders lawfully promulgated under this subchapter. 9 |
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165 | 164 | | (c)(1) Complaints against any person, employment agent, agency 10 |
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166 | 165 | | manager, or counselor may be made to the division orally or in writing. 11 |
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167 | 166 | | (2) The director shall have the power to compel attendance of 12 |
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168 | 167 | | witnesses by issuance of subpoenas, administer oaths, direct production of 13 |
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169 | 168 | | documents and records, and direct taking of testimony and evidence concerning 14 |
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170 | 169 | | all matters within the jurisdiction of the division. 15 |
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171 | 170 | | (3) The director may order testimony to be taken by deposition 16 |
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172 | 171 | | in any proceeding pending before the division at any stage of the proceeding. 17 |
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173 | 172 | | (4) The director or his or her duly authorized agent shall at 18 |
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174 | 173 | | all reasonable times have access to, for the purpose of examination and 19 |
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175 | 174 | | copying, the books, records, papers, and documents of any person being 20 |
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176 | 175 | | investigated or proceeded against under the provisions of this subchapter, so 21 |
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177 | 176 | | long as the books, records, papers, or documents sought to be inspected or 22 |
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178 | 177 | | copied are reasonably related to the investigation or proceeding being 23 |
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179 | 178 | | conducted by the director. 24 |
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180 | 179 | | (5) The director or his or her authorized agent shall, upon 25 |
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181 | 180 | | application of any party to proceedings before the director, issue to the 26 |
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182 | 181 | | party subpoenas requiring the attendance and testimony of witnesses or the 27 |
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183 | 182 | | production of any books, records, papers, or documents reasonably related to 28 |
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184 | 183 | | issues involved in proceedings before the director or an investigation 29 |
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185 | 184 | | conducted by the director. 30 |
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186 | 185 | | (6) If any person in proceedings before the director or in 31 |
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187 | 186 | | investigations conducted by the director disobeys or resists any lawful order 32 |
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188 | 187 | | or process issued by the director or his or her authorized agents, or fails 33 |
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189 | 188 | | to produce, after being lawfully directed to do so, any book, paper, record, 34 |
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190 | 189 | | or document, or refuses to appear and testify after being subpoenaed to do 35 |
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191 | 190 | | so, the director shall certify the facts to any court of competent 36 SB278 |
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192 | 191 | | |
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194 | 193 | | jurisdiction in the state or to the Pulaski County Circuit Court. 1 |
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195 | 194 | | (7) The court shall have authority to conduct hearings and 2 |
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196 | 195 | | punish any person for failure or refusal to testify or produce books, papers, 3 |
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197 | 196 | | documents, or records subpoenaed or ordered by the director as though the 4 |
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198 | 197 | | conduct constituted contempt of court. 5 |
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199 | 198 | | (8) Witnesses summoned by the director or his or her authorized 6 |
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200 | 199 | | agent shall be paid the same fees and mileage paid to witnesses in the courts 7 |
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201 | 200 | | of this state. 8 |
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202 | 201 | | (d)(1) The director may prescribe such rules for the conduct of the 9 |
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203 | 202 | | business of private employment agencies as necessary to implement this 10 |
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204 | 203 | | subchapter. 11 |
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205 | 204 | | (2) These rules shall have the force and effect of law and shall 12 |
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206 | 205 | | be enforced by the director in the same manner as the provisions of this 13 |
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207 | 206 | | subchapter. 14 |
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208 | 207 | | (3) Adoption of rules pursuant to this subsection shall be 15 |
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209 | 208 | | carried out in compliance with the Arkansas Administrative Procedure Act, § 16 |
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210 | 209 | | 25-15-201 et seq. 17 |
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211 | 210 | | (e) The division shall have authority to investigate employment 18 |
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212 | 211 | | agents, agency managers, and counselors. The division shall have the right to 19 |
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213 | 212 | | examine records required by law to be kept and maintained by employment 20 |
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214 | 213 | | agents, agency managers, and counselors and to examine the offices where the 21 |
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215 | 214 | | business is or shall be conducted by them. 22 |
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216 | 215 | | (f) The division may seek to recover in a court of competent 23 |
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217 | 216 | | jurisdiction fees charged or collected in violation of this subchapter. 24 |
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218 | 217 | | 25 |
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219 | 218 | | 11-11-208. License required — Penalties. 26 |
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220 | 219 | | (a) No person shall engage in the business of or act as an employment 27 |
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221 | 220 | | agent, agency manager, or counselor unless he or she first obtains a license 28 |
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222 | 221 | | from the Division of Labor. 29 |
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223 | 222 | | (b)(1)(A) Any person who shall engage in the business of or act as an 30 |
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224 | 223 | | employment agent, agency manager, or counselor without first procuring a 31 |
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225 | 224 | | license is guilty of a misdemeanor. 32 |
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226 | 225 | | (B) He or she shall be punished by a fine of not less than 33 |
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227 | 226 | | fifty dollars ($50.00) and not more than two hundred fifty dollars ($250) for 34 |
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228 | 227 | | each day of acting as an employment agent, agency manager, or counselor 35 |
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229 | 228 | | without a license or by imprisonment for not more than three (3) months, or 36 SB278 |
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230 | 229 | | |
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232 | 231 | | by both. 1 |
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233 | 232 | | (2) In addition to the penalties described in subdivision (b)(1) 2 |
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234 | 233 | | of this section, upon petition of the Director of the Division of Labor, any 3 |
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235 | 234 | | court in the state having the statutory power to enjoin or restrain shall 4 |
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236 | 235 | | have jurisdiction to restrain and enjoin any person who engages in the 5 |
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237 | 236 | | business of or acts as an employment agent, agency manager, or counselor 6 |
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238 | 237 | | without having first procured a license for so engaging or acting. 7 |
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239 | 238 | | 8 |
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240 | 239 | | 11-11-209. Certificate of exemption required for certain 9 |
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241 | 240 | | organizations. 10 |
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242 | 241 | | (a) Bona fide nursing schools, nurses' registries, management 11 |
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243 | 242 | | consulting firms, business schools, vocational schools whose primary function 12 |
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244 | 243 | | and purpose is training and education, and resume services shall obtain from 13 |
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245 | 244 | | the Director of the Division of Labor a certificate of exemption from the 14 |
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246 | 245 | | requirements of this subchapter. 15 |
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247 | 246 | | (b) In connection with issuance of a certificate of exemption and with 16 |
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248 | 247 | | respect to an organization's continued eligibility for a previously issued 17 |
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249 | 248 | | certificate of exemption, the director shall have those investigative powers 18 |
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250 | 249 | | conferred by § 11-11-204. 19 |
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251 | 250 | | 20 |
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252 | 251 | | 11-11-210. Employment counselor's license — Application — 21 |
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253 | 252 | | Qualifications. 22 |
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254 | 253 | | (a) To be eligible for application for an employment counselor's 23 |
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255 | 254 | | license, the applicant shall be: 24 |
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256 | 255 | | (1) A citizen of the United States; 25 |
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257 | 256 | | (2) Of good moral character; 26 |
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258 | 257 | | (3) A person whose license has not been revoked within two (2) 27 |
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259 | 258 | | years from the date of application; and 28 |
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260 | 259 | | (4) Able to demonstrate business integrity. 29 |
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261 | 260 | | (b)(1) Every applicant for an initial license for employment counselor 30 |
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262 | 261 | | shall file with the Division of Labor a written application on a form 31 |
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263 | 262 | | prescribed and furnished by the Director of the Division of Labor. 32 |
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264 | 263 | | (2) The applicant shall file at least two (2) letters of 33 |
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265 | 264 | | character reference from persons of reputed business or professional 34 |
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266 | 265 | | integrity. 35 |
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267 | 266 | | (3) This application shall contain information prescribed by the 36 SB278 |
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268 | 267 | | |
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270 | 269 | | director. 1 |
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271 | 270 | | 2 |
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272 | 271 | | 11-11-211. Agency manager license — Application — Qualifications. 3 |
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273 | 272 | | (a) To be eligible to apply for a license to act as an agency manager, 4 |
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274 | 273 | | the applicant shall be: 5 |
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275 | 274 | | (1) A citizen of the United States; 6 |
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276 | 275 | | (2) Of good moral character; 7 |
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277 | 276 | | (3) At least twenty -one (21) years of age; 8 |
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278 | 277 | | (4) A person whose license has not been revoked within two (2) 9 |
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279 | 278 | | years from the date of the application; 10 |
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280 | 279 | | (5) A person who has completed the twelfth grade, except that 11 |
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281 | 280 | | the Director of the Division of Labor may establish proof necessary to him or 12 |
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282 | 281 | | her that the applicant is possessed of a twelfth -grade education in terms of 13 |
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283 | 282 | | intellectual competency, judgment, and achievement; and 14 |
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284 | 283 | | (6) A person who demonstrates business integrity, financial 15 |
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285 | 284 | | responsibility, and judgment. 16 |
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286 | 285 | | (b)(1) Every applicant for an initial license for agency manager shall 17 |
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287 | 286 | | file with the Division of Labor a written application on a form prescribed 18 |
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288 | 287 | | and furnished by the director. 19 |
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289 | 288 | | (2) The applicant shall file at least two (2) letters of 20 |
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290 | 289 | | character reference from persons of reputed business or professional 21 |
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291 | 290 | | integrity. 22 |
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292 | 291 | | (3) This application shall contain information prescribed by the 23 |
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293 | 292 | | director. 24 |
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294 | 293 | | 25 |
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295 | 294 | | 11-11-212. Employment agency license — Application — Qualifications. 26 |
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296 | 295 | | (a) To be eligible to apply for a license to operate an employment 27 |
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297 | 296 | | agency, the applicant shall be: 28 |
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298 | 297 | | (1) A citizen of the United States; 29 |
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299 | 298 | | (2) Of good moral character; 30 |
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300 | 299 | | (3) At least twenty -one (21) years of age; 31 |
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301 | 300 | | (4) A person whose license has not been revoked within two (2) 32 |
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302 | 301 | | years from the date of the application; 33 |
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303 | 302 | | (5) A person who has completed the twelfth grade, except that 34 |
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304 | 303 | | the Director of the Division of Labor may establish proof necessary to him or 35 |
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305 | 304 | | her that the applicant is possessed of a twelfth -grade education in terms of 36 SB278 |
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306 | 305 | | |
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308 | 307 | | intellectual competency, judgment, and achievement; and 1 |
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309 | 308 | | (6) A person who demonstrates business integrity, financial 2 |
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310 | 309 | | responsibility, and judgment. 3 |
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311 | 310 | | (b)(1) Every applicant for an initial employment agency license and 4 |
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312 | 311 | | every applicant for a renewal license shall file with the Director of the 5 |
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313 | 312 | | Division of Labor a completed application on a form prescribed and furnished 6 |
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314 | 313 | | by the Director of the Division of Labor. 7 |
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315 | 314 | | (2)(A) The application shall be signed by the applicant and 8 |
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316 | 315 | | sworn to before anyone qualified by law to administer oaths. 9 |
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317 | 316 | | (B) If the applicant is a corporation, the application 10 |
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318 | 317 | | shall state the names and home addresses of all shareholders, officers, and 11 |
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319 | 318 | | directors of the corporation and shall be signed and sworn to by the 12 |
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320 | 319 | | president, treasurer, and secretary thereof. 13 |
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321 | 320 | | (C) If the applicant is a partnership, the application 14 |
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322 | 321 | | shall state the names and home addresses of all partners therein and shall be 15 |
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323 | 322 | | signed and sworn to by all of them. 16 |
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324 | 323 | | (3) The applicant shall file at least two (2) letters of 17 |
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325 | 324 | | character reference from persons of reputed business or professional 18 |
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326 | 325 | | integrity. 19 |
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327 | 326 | | (4) This application shall also contain such other information 20 |
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328 | 327 | | as the Director of the Division of Labor may prescribe. 21 |
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329 | 328 | | 22 |
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330 | 329 | | 11-11-213. Employment agency license — Bond required — Action on the 23 |
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331 | 330 | | bond. 24 |
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332 | 331 | | (a)(1) Every application for issuance or renewal of an employment 25 |
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333 | 332 | | agency's license shall be accompanied by a bond in the sum of five thousand 26 |
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334 | 333 | | dollars ($5,000) with a duly licensed surety company or companies authorized 27 |
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335 | 334 | | to do business in this state. 28 |
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336 | 335 | | (2) The terms and conditions of the bond shall be approved by 29 |
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337 | 336 | | the Director of the Division of Labor. 30 |
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338 | 337 | | (3) The bond shall be conditioned that the employment agency and 31 |
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339 | 338 | | each member, employee, shareholder, director, or officer of a person, firm, 32 |
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340 | 339 | | partnership, corporation, or association operating as the employment agency 33 |
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341 | 340 | | will not violate the provisions of this subchapter or violate rules or orders 34 |
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342 | 341 | | lawfully promulgated by the director or violate the terms of any contract 35 |
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343 | 342 | | made by the employment agent in the conduct of its business. 36 SB278 |
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344 | 343 | | |
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346 | 345 | | (b)(1) If any person shall be aggrieved by the misconduct of any 1 |
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347 | 346 | | licensee, that person may maintain an action in his or her own name upon the 2 |
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348 | 347 | | bond of the employment agency in any court of competent jurisdiction or in 3 |
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349 | 348 | | the Pulaski County Circuit Court. 4 |
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350 | 349 | | (2)(A) All claims shall be assignable, and the assignee shall be 5 |
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351 | 350 | | entitled to the same remedies upon the bond of the licensee as the person 6 |
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352 | 351 | | aggrieved would have been entitled to if the claim had not been assigned. 7 |
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353 | 352 | | (B) Any claim so assigned may be enforced in the name of 8 |
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354 | 353 | | the assignee. 9 |
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355 | 354 | | (3) Any remedies given by this section shall not be exclusive of 10 |
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356 | 355 | | any other remedy that would otherwise exist. 11 |
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357 | 356 | | (c) Action on the bond required by this section may be maintained by 12 |
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358 | 357 | | the director in the name of the state in any court of competent jurisdiction 13 |
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359 | 358 | | or in the Pulaski County Circuit Court, for the benefit of any person or 14 |
---|
360 | 359 | | persons aggrieved by the misconduct of the licensee. 15 |
---|
361 | 360 | | (d)(1) If any licensee fails to file a new bond with the Division of 16 |
---|
362 | 361 | | Labor within thirty (30) days after notice of cancellation by the surety of 17 |
---|
363 | 362 | | the bond required by this section, the license issued to the principal under 18 |
---|
364 | 363 | | the bond is suspended until such time as a new surety bond is filed with and 19 |
---|
365 | 364 | | approved by the director. 20 |
---|
366 | 365 | | (2) A person whose license is suspended pursuant to this 21 |
---|
367 | 366 | | subsection shall not carry on the business of an employment agency during the 22 |
---|
368 | 367 | | period of the suspension. 23 |
---|
369 | 368 | | 24 |
---|
370 | 369 | | 11-11-214. Investigation of license applicant by director. 25 |
---|
371 | 370 | | (a) Upon filing of an application for a license as provided in this 26 |
---|
372 | 371 | | subchapter, the Director of the Division of Labor shall cause an 27 |
---|
373 | 372 | | investigation to be made regarding the character, business integrity, and 28 |
---|
374 | 373 | | financial responsibility of the license applicant. 29 |
---|
375 | 374 | | (b) The director shall also determine the suitability or unsuitability 30 |
---|
376 | 375 | | of the applicant's proposed office location. 31 |
---|
377 | 376 | | (c) An application for an employment agency's, agency manager's, or 32 |
---|
378 | 377 | | employment counselor's license shall be rejected by the director if it is 33 |
---|
379 | 378 | | found that any person named in the license application is not of good moral 34 |
---|
380 | 379 | | character, business integrity, or financial responsibility or if there is 35 |
---|
381 | 380 | | good and sufficient reason within the meaning and purpose of this subchapter 36 SB278 |
---|
382 | 381 | | |
---|
383 | 382 | | 11 02/21/2025 3:52:17 PM LGL103 |
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384 | 383 | | for rejecting the application. 1 |
---|
385 | 384 | | 2 |
---|
386 | 385 | | 11-11-215. Employment agency license — Scope — Change of license. 3 |
---|
387 | 386 | | (a)(1) An employment agent's license issued pursuant to this 4 |
---|
388 | 387 | | subchapter shall protect only those persons to whom it is issued and only the 5 |
---|
389 | 388 | | location for which it is issued. 6 |
---|
390 | 389 | | (2) A separate license shall be required for each separate 7 |
---|
391 | 390 | | office location operated by an employment agency. 8 |
---|
392 | 391 | | (3) No license shall be valid to protect any business transacted 9 |
---|
393 | 392 | | under any name other than that designated in the license. 10 |
---|
394 | 393 | | (b) No employment agent shall permit any person not mentioned in the 11 |
---|
395 | 394 | | license or license application to become a member, officer, director, 12 |
---|
396 | 395 | | shareholder, or partner in the conduct of the business of the employment 13 |
---|
397 | 396 | | agent unless written consent of the Director of the Division of Labor and 14 |
---|
398 | 397 | | written consent of the surety on the bond required by this subchapter shall 15 |
---|
399 | 398 | | first be obtained. 16 |
---|
400 | 399 | | (c) The location of an employment agency shall not be changed without 17 |
---|
401 | 400 | | written consent from the Director of the Division of Labor, and a new license 18 |
---|
402 | 401 | | application shall be required for any change of office location in excess of 19 |
---|
403 | 402 | | twenty-five (25) miles. 20 |
---|
404 | 403 | | (d) A charge of ten dollars ($10.00) shall be made by the Division of 21 |
---|
405 | 404 | | Labor for the recording of authorization for each change of office location 22 |
---|
406 | 405 | | authorized by this section. 23 |
---|
407 | 406 | | 24 |
---|
408 | 407 | | 11-11-216. Examination for licenses. 25 |
---|
409 | 408 | | (a)(1)(A) Before the Director of the Division of Labor issues a 26 |
---|
410 | 409 | | license to an applicant for a permanent employment agent's, permanent agency 27 |
---|
411 | 410 | | manager's, or permanent counselor's license, the applicant shall be required 28 |
---|
412 | 411 | | to successfully complete a written examination prepared by the director. 29 |
---|
413 | 412 | | (B) The examination shall establish the competency of the 30 |
---|
414 | 413 | | applicant to: 31 |
---|
415 | 414 | | (i) Operate and conduct an employment agency; or 32 |
---|
416 | 415 | | (ii) Perform service as an agency manager or counselor for 33 |
---|
417 | 416 | | the agency. 34 |
---|
418 | 417 | | (2) No examination shall be required for renewal of any license 35 |
---|
419 | 418 | | issued pursuant to this subchapter unless the license has been suspended, 36 SB278 |
---|
420 | 419 | | |
---|
421 | 420 | | 12 02/21/2025 3:52:17 PM LGL103 |
---|
422 | 421 | | revoked, or submitted late, causing the application to be treated as a new 1 |
---|
423 | 422 | | application. 2 |
---|
424 | 423 | | (b) The Division of Labor shall hold examinations at such times and 3 |
---|
425 | 424 | | places as it shall reasonably determine, except that examinations shall be 4 |
---|
426 | 425 | | given to license applicants at least once every sixty (60) days. 5 |
---|
427 | 426 | | (c)(1) An examination fee of five dollars ($5.00) shall be paid by 6 |
---|
428 | 427 | | each applicant in addition to the license fee. 7 |
---|
429 | 428 | | (2) The examination fee shall be retained by the division, 8 |
---|
430 | 429 | | whether or not the applicant successfully completes the examination. 9 |
---|
431 | 430 | | (3) The examination fee shall be forfeited if the applicant does 10 |
---|
432 | 431 | | not take the examination within three (3) months of the application date. 11 |
---|
433 | 432 | | 12 |
---|
434 | 433 | | 11-11-217. License fees. 13 |
---|
435 | 434 | | (a) Before a permanent license shall be granted to a license 14 |
---|
436 | 435 | | applicant, an applicant shall pay the following annual fee for each license: 15 |
---|
437 | 436 | | (1) Two hundred fifty dollars ($250) for an employment agency; 16 |
---|
438 | 437 | | (2) Twenty-five dollars ($25.00) for an employment agency 17 |
---|
439 | 438 | | manager; and 18 |
---|
440 | 439 | | (3) Twenty dollars ($20.00) for an employment counselor. 19 |
---|
441 | 440 | | (b) Multiple licenses for a person simultaneously performing the 20 |
---|
442 | 441 | | functions of employment agent, agency manager, or employment counselor will 21 |
---|
443 | 442 | | not be required. The person shall procure a license commensurate with the 22 |
---|
444 | 443 | | highest level of job duties and responsibilities customarily and regularly 23 |
---|
445 | 444 | | performed by the person. 24 |
---|
446 | 445 | | (c) All moneys received from licensing shall be deposited into the 25 |
---|
447 | 446 | | general fund of the State Treasury. 26 |
---|
448 | 447 | | 27 |
---|
449 | 448 | | 11-11-218. Temporary licenses. 28 |
---|
450 | 449 | | (a)(1) The Director of the Division of Labor shall have authority to 29 |
---|
451 | 450 | | issue a temporary license for operation of a private employment agency, which 30 |
---|
452 | 451 | | shall be valid for no more than ninety (90) days, upon submission by the 31 |
---|
453 | 452 | | applicant for the license of: 32 |
---|
454 | 453 | | (A) A properly completed application form furnished and 33 |
---|
455 | 454 | | approved by the director; 34 |
---|
456 | 455 | | (B) Submission of evidence of the applicant's compliance 35 |
---|
457 | 456 | | with the bonding requirements of this subchapter; and 36 SB278 |
---|
458 | 457 | | |
---|
459 | 458 | | 13 02/21/2025 3:52:17 PM LGL103 |
---|
460 | 459 | | (C) Payment of a temporary license fee of one hundred 1 |
---|
461 | 460 | | dollars ($100). 2 |
---|
462 | 461 | | (2) The temporary license may be issued only if, after 3 |
---|
463 | 462 | | investigation, it reasonably appears that the applicant will meet the 4 |
---|
464 | 463 | | qualifications for a permanent private employment agency license. 5 |
---|
465 | 464 | | (b)(1) The director shall have authority to issue temporary licenses 6 |
---|
466 | 465 | | for agency managers and employment counselors, which shall be valid for no 7 |
---|
467 | 466 | | more than ninety (90) days, upon submission by the applicant for such license 8 |
---|
468 | 467 | | of: 9 |
---|
469 | 468 | | (A) A properly completed application form, furnished and 10 |
---|
470 | 469 | | approved by the director; and 11 |
---|
471 | 470 | | (B) Payment of a temporary license fee of ten dollars 12 |
---|
472 | 471 | | ($10.00). 13 |
---|
473 | 472 | | (2) The temporary licenses for agency managers and employment 14 |
---|
474 | 473 | | counselors may be issued only if, after investigation, it reasonably appears 15 |
---|
475 | 474 | | that the applicant will meet the qualifications for a permanent license as 16 |
---|
476 | 475 | | agency manager or employment counselor. 17 |
---|
477 | 476 | | (3) Temporary licenses issued to agency managers and employment 18 |
---|
478 | 477 | | counselors are nontransferable and are automatically rescinded upon 19 |
---|
479 | 478 | | suspension or termination of the employment of the agency manager or 20 |
---|
480 | 479 | | employment counselor. 21 |
---|
481 | 480 | | (4) The director shall approve or reject an application for a 22 |
---|
482 | 481 | | temporary agency manager's license or temporary employment counselor's 23 |
---|
483 | 482 | | license within five (5) days after receipt of a properly completed 24 |
---|
484 | 483 | | application for the license. 25 |
---|
485 | 484 | | 26 |
---|
486 | 485 | | 11-11-219. Renewal of licenses. 27 |
---|
487 | 486 | | (a) Every license issued pursuant to this subchapter shall remain in 28 |
---|
488 | 487 | | force for one (1) year from the date of issue or until the end of the state's 29 |
---|
489 | 488 | | fiscal year, whichever occurs first, unless the license has been revoked 30 |
---|
490 | 489 | | pursuant to the provisions of this subchapter. 31 |
---|
491 | 490 | | (b) Applications for renewal of all licenses provided by this 32 |
---|
492 | 491 | | subchapter must be filed with the Director of the Division of Labor no later 33 |
---|
493 | 492 | | than thirty (30) days prior to expiration of the license. 34 |
---|
494 | 493 | | (c) Any licensee who fails to renew a license by the expiration date 35 |
---|
495 | 494 | | shall be automatically suspended from the right to engage in the activity 36 SB278 |
---|
496 | 495 | | |
---|
497 | 496 | | 14 02/21/2025 3:52:17 PM LGL103 |
---|
498 | 497 | | authorized by the license until the license is renewed. 1 |
---|
499 | 498 | | (d) Every application for renewal of a license must be accompanied by 2 |
---|
500 | 499 | | payment of the required license fee and evidence of compliance with the 3 |
---|
501 | 500 | | bonding requirements of this subchapter. 4 |
---|
502 | 501 | | 5 |
---|
503 | 502 | | 11-11-220. Cessation of business by licensee. 6 |
---|
504 | 503 | | (a)(1) If an employment agent ceases business operations, the agent 7 |
---|
505 | 504 | | shall, as soon as reasonably possible, notify the Division of Labor and shall 8 |
---|
506 | 505 | | deliver or forward by mail the agent's license to the division. Failure to 9 |
---|
507 | 506 | | give notice, or failure to deliver such employment agent's license, shall be 10 |
---|
508 | 507 | | a violation of § 11-11-208. 11 |
---|
509 | 508 | | (2)(A) When one (1) or more individuals, on the basis of whose 12 |
---|
510 | 509 | | qualifications an agency license has been obtained, ceases to be connected 13 |
---|
511 | 510 | | with the licensed business for any reason whatsoever, the agency business may 14 |
---|
512 | 511 | | be carried on for a temporary period not to exceed thirty (30) days, under 15 |
---|
513 | 512 | | such terms and conditions as the Director of the Division of Labor shall 16 |
---|
514 | 513 | | provide by rule for the orderly closing of the business or the replacement 17 |
---|
515 | 514 | | and qualification of a new member, partner, or corporate officer, director, 18 |
---|
516 | 515 | | or shareholder. 19 |
---|
517 | 516 | | (B) The agency's authorization to continue to do business 20 |
---|
518 | 517 | | under this subchapter beyond the thirty -day period provided in this 21 |
---|
519 | 518 | | subdivision (a)(2) shall be contingent upon approval by the Director of the 22 |
---|
520 | 519 | | Division of Labor of any new member, principal, partner, officer, director, 23 |
---|
521 | 520 | | or shareholder. 24 |
---|
522 | 521 | | (b)(1) If an agency manager terminates his or her employment with an 25 |
---|
523 | 522 | | employment agency by which he or she is employed, the agency shall notify the 26 |
---|
524 | 523 | | division, as soon as is reasonably possible, to enable the division to know 27 |
---|
525 | 524 | | at all times the identity of the person charged with the general management 28 |
---|
526 | 525 | | of each of the agency's office locations. 29 |
---|
527 | 526 | | (2) The employment agency shall also deliver or forward by mail 30 |
---|
528 | 527 | | the agency manager's license, together with the reasons why the agency 31 |
---|
529 | 528 | | manager has terminated his or her position with the employment agency. 32 |
---|
530 | 529 | | (c) If an employment counselor terminates his or her employment with 33 |
---|
531 | 530 | | the employment agency by which he or she is employed, the agency shall, as 34 |
---|
532 | 531 | | soon as is reasonably possible, notify the division and deliver or forward by 35 |
---|
533 | 532 | | mail the employment counselor's license to the division, together with the 36 SB278 |
---|
534 | 533 | | |
---|
535 | 534 | | 15 02/21/2025 3:52:17 PM LGL103 |
---|
536 | 535 | | reasons for his or her termination. 1 |
---|
537 | 536 | | 2 |
---|
538 | 537 | | 11-11-221. Issuance, refusal, suspension, or revocation of license — 3 |
---|
539 | 538 | | Grounds. 4 |
---|
540 | 539 | | (a) The Director of the Division of Labor shall issue a license as an 5 |
---|
541 | 540 | | employment agent, agency manager, or counselor to any person who qualifies 6 |
---|
542 | 541 | | for the license under the terms of this subchapter. 7 |
---|
543 | 542 | | (b) The director may, in addition, refuse to issue a license to any 8 |
---|
544 | 543 | | person or may suspend or revoke the license of any employment agent, agency 9 |
---|
545 | 544 | | manager, or employment counselor or impose administrative fines as provided 10 |
---|
546 | 545 | | for in § 11-11-203 when the director finds that any of the following 11 |
---|
547 | 546 | | conditions exist: 12 |
---|
548 | 547 | | (1) That the employment agent, agency manager, or counselor has 13 |
---|
549 | 548 | | violated any of the provisions of this subchapter; 14 |
---|
550 | 549 | | (2) That the employment agent, agency manager, or counselor has 15 |
---|
551 | 550 | | violated any of the rules or other orders lawfully promulgated by the 16 |
---|
552 | 551 | | director; 17 |
---|
553 | 552 | | (3) That the employment agent, agency manager, or counselor has 18 |
---|
554 | 553 | | violated the conditions of the bond required by § 11 -11-213; 19 |
---|
555 | 554 | | (4) That the person, employment agent, agency manager, or 20 |
---|
556 | 555 | | employment counselor has engaged in a fraudulent, deceptive, or dishonest 21 |
---|
557 | 556 | | practice; 22 |
---|
558 | 557 | | (5) That the person, employment agent, agency manager, or 23 |
---|
559 | 558 | | employment counselor has been legally adjudicated incompetent; or 24 |
---|
560 | 559 | | (6) That the applicant is for good and sufficient cause unfit to 25 |
---|
561 | 560 | | be an employment agent, agency manager, or employment counselor within the 26 |
---|
562 | 561 | | meaning of this subchapter or of any of the rules or orders lawfully 27 |
---|
563 | 562 | | promulgated by the director. 28 |
---|
564 | 563 | | (c) This section and § 11 -11-222 shall not be construed to relieve any 29 |
---|
565 | 564 | | person from civil liability or from criminal prosecution under the provisions 30 |
---|
566 | 565 | | of this subchapter or under other laws of this state. 31 |
---|
567 | 566 | | 32 |
---|
568 | 567 | | 11-11-222. Refusal, suspension, or revocation of license — Notice and 33 |
---|
569 | 568 | | hearing. 34 |
---|
570 | 569 | | (a)(1) The Director of the Division of Labor may not refuse to issue a 35 |
---|
571 | 570 | | license or suspend or revoke a license unless it furnishes the person, 36 SB278 |
---|
572 | 571 | | |
---|
573 | 572 | | 16 02/21/2025 3:52:17 PM LGL103 |
---|
574 | 573 | | employment agent, agency manager, or employment counselor with a written 1 |
---|
575 | 574 | | statement of the charges against him or her and affords him or her an 2 |
---|
576 | 575 | | opportunity to be heard on the charges. 3 |
---|
577 | 576 | | (2) At the time that written charges are furnished to an 4 |
---|
578 | 577 | | employment agency, the director shall make available to the agency a signed 5 |
---|
579 | 578 | | written statement by any individual having filed a complaint with the 6 |
---|
580 | 579 | | director relative to the matter for which charges have been filed by the 7 |
---|
581 | 580 | | director. 8 |
---|
582 | 581 | | (3) The agency shall be given at least twenty (20) days’ written 9 |
---|
583 | 582 | | notice of the date and time of the hearing. The notice shall conform to the 10 |
---|
584 | 583 | | standards for notices set forth in the Arkansas Administrative Procedure Act, 11 |
---|
585 | 584 | | § 25-15-201 et seq. 12 |
---|
586 | 585 | | (4) The notice shall be sent by certified mail, return receipt 13 |
---|
587 | 586 | | requested, to the address of the person as shown on his or her application 14 |
---|
588 | 587 | | for license, or it may be served in the manner in which a summons is served 15 |
---|
589 | 588 | | in civil cases commenced in the circuit courts of this state. 16 |
---|
590 | 589 | | (b)(1) At the time and place fixed for the hearing, the director shall 17 |
---|
591 | 590 | | hold the hearing and thereafter make his or her order either dismissing the 18 |
---|
592 | 591 | | charges or refusing, suspending, or revoking the license. 19 |
---|
593 | 592 | | (2)(A) At the hearing, the accused shall have the right to 20 |
---|
594 | 593 | | appear personally and by counsel and to cross -examine witnesses against him 21 |
---|
595 | 594 | | or her. 22 |
---|
596 | 595 | | (B)(i) He or she shall be allowed to produce evidence and 23 |
---|
597 | 596 | | witnesses in his or her defense and shall have the right to have witnesses 24 |
---|
598 | 597 | | subpoenaed. 25 |
---|
599 | 598 | | (ii) The subpoenas shall be issued by the director. 26 |
---|
600 | 599 | | (c)(1) A stenographic record of all proceedings shall be made, and a 27 |
---|
601 | 600 | | transcript of the proceedings shall be made if desired by the Division of 28 |
---|
602 | 601 | | Labor or by the accused. 29 |
---|
603 | 602 | | (2) The transcript shall be paid for by the party ordering it. 30 |
---|
604 | 603 | | 31 |
---|
605 | 604 | | 11-11-223. Judicial review of director's administrative orders. 32 |
---|
606 | 605 | | (a) If the Director of the Division of Labor refuses to grant a 33 |
---|
607 | 606 | | license, suspends or revokes a license that has been granted, or imposes an 34 |
---|
608 | 607 | | administrative fine as provided in §§ 11 -11-213, 11-11-221, and 11-11-222, 35 |
---|
609 | 608 | | the person adversely affected or aggrieved by the order of the director 36 SB278 |
---|
610 | 609 | | |
---|
611 | 610 | | 17 02/21/2025 3:52:17 PM LGL103 |
---|
612 | 611 | | issued pursuant to the provisions of §§ 11 -11-221 and 11-11-222 may obtain a 1 |
---|
613 | 612 | | review of the order. 2 |
---|
614 | 613 | | (b) The order may be brought in the circuit court in the judicial 3 |
---|
615 | 614 | | district in which the violation is alleged to have occurred, where the 4 |
---|
616 | 615 | | employment agent, manager, or counselor worked, or in the Pulaski County 5 |
---|
617 | 616 | | Circuit Court or, if the aggrieved person is a nonresident of the state, in 6 |
---|
618 | 617 | | the Pulaski County Circuit Court. 7 |
---|
619 | 618 | | (c)(1) The review may be obtained by filing in the court within thirty 8 |
---|
620 | 619 | | (30) days following the issuance of the order a written petition praying that 9 |
---|
621 | 620 | | the order be modified or set aside. 10 |
---|
622 | 621 | | (2)(A) A copy of the petition shall be forthwith transmitted by 11 |
---|
623 | 622 | | the clerk of the court to the Division of Labor. 12 |
---|
624 | 623 | | (B) Thereupon, the division shall file in the court the 13 |
---|
625 | 624 | | record of proceedings before the division. 14 |
---|
626 | 625 | | (d) Upon the filing, the court shall have jurisdiction of the 15 |
---|
627 | 626 | | proceedings and of the questions determined therein and shall have power to 16 |
---|
628 | 627 | | grant such temporary relief or restraining order as it deems just and proper 17 |
---|
629 | 628 | | and to make and enter upon the pleadings, testimony, and proceedings set 18 |
---|
630 | 629 | | forth in the record a decree affirming, modifying, or setting aside, in whole 19 |
---|
631 | 630 | | or in part, the order of the director and enforcing the same to the extent 20 |
---|
632 | 631 | | that the order is affirmed. 21 |
---|
633 | 632 | | (e) Commencement of proceedings under this section shall not, unless 22 |
---|
634 | 633 | | ordered by the court, operate as a stay of the order of the director. 23 |
---|
635 | 634 | | (f)(1) No objection which has not been urged before the director shall 24 |
---|
636 | 635 | | be considered by the court. 25 |
---|
637 | 636 | | (2) The findings of the director with respect to questions of 26 |
---|
638 | 637 | | fact, if supported by substantial evidence on the record considered as a 27 |
---|
639 | 638 | | whole, shall be conclusive. 28 |
---|
640 | 639 | | (g)(1) If any party shall apply to the court for leave to adduce 29 |
---|
641 | 640 | | additional evidence and shall show to the satisfaction of the court that the 30 |
---|
642 | 641 | | additional evidence is material and that there were reasonable grounds for 31 |
---|
643 | 642 | | the failure to adduce the evidence in the hearing before the director, the 32 |
---|
644 | 643 | | court may order the additional evidence to be taken before the director and 33 |
---|
645 | 644 | | made a part of the record. 34 |
---|
646 | 645 | | (2)(A) The director may modify his or her findings as to the 35 |
---|
647 | 646 | | facts or make new findings, by reason of additional evidence so taken and 36 SB278 |
---|
648 | 647 | | |
---|
649 | 648 | | 18 02/21/2025 3:52:17 PM LGL103 |
---|
650 | 649 | | filed, and the director shall file the modified or new findings with the 1 |
---|
651 | 650 | | court. 2 |
---|
652 | 651 | | (B) The findings with respect to questions of fact, if 3 |
---|
653 | 652 | | supported by substantial evidence on the record considered as a whole, shall 4 |
---|
654 | 653 | | be conclusive. 5 |
---|
655 | 654 | | (h) Upon the filing of the record with it, the jurisdiction of the 6 |
---|
656 | 655 | | court shall be exclusive, and its judgment and decree shall be final, except 7 |
---|
657 | 656 | | that it shall be subject to review by the Supreme Court. 8 |
---|
658 | 657 | | (i)(1) The division shall certify the record of its proceedings if the 9 |
---|
659 | 658 | | party commencing the proceedings shall pay to it the cost of preparing and 10 |
---|
660 | 659 | | certifying the records, including the recording and transcribing of all 11 |
---|
661 | 660 | | testimony introduced in the proceedings. 12 |
---|
662 | 661 | | (2) If payment of the costs of preparing and certifying the 13 |
---|
663 | 662 | | records, including the recording and transcribing of all testimony introduced 14 |
---|
664 | 663 | | in the proceedings, is not made by the party commencing the proceedings for 15 |
---|
665 | 664 | | review within ten (10) days after notice from the division of the cost of 16 |
---|
666 | 665 | | preparing and certifying the record, the circuit court in which the 17 |
---|
667 | 666 | | proceeding is pending, on motion of the director, shall dismiss the petition. 18 |
---|
668 | 667 | | 19 |
---|
669 | 668 | | 11-11-224. Deceptive practices. 20 |
---|
670 | 669 | | (a) No employment agent shall publish or cause to be published any 21 |
---|
671 | 670 | | fraudulent or misleading notice or advertisement of the employment agency by 22 |
---|
672 | 671 | | means of cards, circulars, or signs or in newspapers or other publications. 23 |
---|
673 | 672 | | (b) All letterheads, receipts, and blanks shall contain the full name 24 |
---|
674 | 673 | | and address of the employment agency, and the licensee shall state in all 25 |
---|
675 | 674 | | notices and advertisements the fact that the licensee is or conducts a 26 |
---|
676 | 675 | | private employment agency. 27 |
---|
677 | 676 | | (c) No employment agency shall print, publish, or paint on any sign or 28 |
---|
678 | 677 | | window or insert in any newspaper or publication a name similar to that of 29 |
---|
679 | 678 | | the Arkansas State Employment Service or any other governmental agency. 30 |
---|
680 | 679 | | (d) No employment agency shall print or stamp on any receipt or on any 31 |
---|
681 | 680 | | contract used by the agency any part of this subchapter unless the entire 32 |
---|
682 | 681 | | section from which the part is taken is printed or stamped thereon. 33 |
---|
683 | 682 | | (e) No employment agency shall allow any person in its employment to 34 |
---|
684 | 683 | | use any names other than their legal names in the course of and in respect to 35 |
---|
685 | 684 | | their employment with the agency. 36 SB278 |
---|
686 | 685 | | |
---|
687 | 686 | | 19 02/21/2025 3:52:17 PM LGL103 |
---|
688 | 687 | | (f) No employment agency or its employees or agents shall give any 1 |
---|
689 | 688 | | information or make any representation to any applicant, where the agency or 2 |
---|
690 | 689 | | its employees or agents know or reasonably should know that the information 3 |
---|
691 | 690 | | or representation is false. 4 |
---|
692 | 691 | | (g) No employment agency or its employees or agents shall knowingly 5 |
---|
693 | 692 | | withhold from a job applicant any information material to a job to which that 6 |
---|
694 | 693 | | applicant is referred. 7 |
---|
695 | 694 | | (h) No employment agent or its agents or employees shall engage in any 8 |
---|
696 | 695 | | conduct in the course of its business that constitutes a fraudulent, 9 |
---|
697 | 696 | | dishonest, or deceptive practice, whether or not the conduct is prohibited by 10 |
---|
698 | 697 | | this subchapter. 11 |
---|
699 | 698 | | (i) No contracts, forms, or schedules used by employment agencies in 12 |
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700 | 699 | | their dealings with the public shall contain any false, ambiguous, or 13 |
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701 | 700 | | misleading information. 14 |
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702 | 701 | | 15 |
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703 | 702 | | 11-11-225. Miscellaneous restrictions and requirements. 16 |
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704 | 703 | | In addition to other provisions of this subchapter, the following 17 |
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705 | 704 | | provisions shall govern each and every employment agency: 18 |
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706 | 705 | | (1) Every employment agent or agency shall display his, her, or 19 |
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707 | 706 | | its license in a conspicuous place in the main office of the agency. Managers 20 |
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708 | 707 | | and counselors shall display their licenses in a conspicuous place in their 21 |
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709 | 708 | | offices or work areas; 22 |
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710 | 709 | | (2)(A) All advertising by an employment agency of any form or 23 |
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711 | 710 | | kind shall include the words “employment agency” or “personnel agency”. 24 |
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712 | 711 | | (B) Advertising for an employment position with the agency 25 |
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713 | 712 | | itself shall clearly convey the information that the job position offered is 26 |
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714 | 713 | | with the employment agency publishing the advertisement; 27 |
---|
715 | 714 | | (3) No employment agency or its agents or employees shall 28 |
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716 | 715 | | receive or require any applicant to execute any power of attorney, assignment 29 |
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717 | 716 | | of wages or salary, or note authorizing the confession of judgment; 30 |
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718 | 717 | | (4) No employment agent, by himself or herself, or by his or her 31 |
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719 | 718 | | agents or employees, shall solicit, persuade, or induce any employee to leave 32 |
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720 | 719 | | any employment in which the employment agent or his or her agent has placed 33 |
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721 | 720 | | the employee, nor shall any employment agency or any of its agents or 34 |
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722 | 721 | | employees solicit, persuade, or induce any employer to discharge any 35 |
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723 | 722 | | employee, nor shall any employment agent, or his or her agents or employees, 36 SB278 |
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724 | 723 | | |
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725 | 724 | | 20 02/21/2025 3:52:17 PM LGL103 |
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726 | 725 | | divide or offer to divide or share directly or indirectly any fee, charge, or 1 |
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727 | 726 | | compensation received, or to be received, from an employee with any employer 2 |
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728 | 727 | | or persons in any way connected with the business thereof; 3 |
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729 | 728 | | (5)(A) No employment agent by himself or herself or by his or 4 |
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730 | 729 | | her agents or employees shall give or promise to give anything of intrinsic 5 |
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731 | 730 | | value to any employer or applicant for employment as an inducement to use the 6 |
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732 | 731 | | services of his or her employment agency. 7 |
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733 | 732 | | (B) No fee shall be solicited or accepted as an 8 |
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734 | 733 | | application or registration fee by an employment agent for the purpose of 9 |
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735 | 734 | | registering any person as an applicant for employment; 10 |
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736 | 735 | | (6) No employment agency or its agents or employees shall 11 |
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737 | 736 | | advertise or make a referral for any job position without having first 12 |
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738 | 737 | | obtained a bona fide job order therefor; 13 |
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739 | 738 | | (7) No employment agency or its agents or employees shall refer 14 |
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740 | 739 | | an applicant for a job or job interview unless the applicant has been 15 |
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741 | 740 | | personally interviewed by the employment agency or its agents or employees or 16 |
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742 | 741 | | has corresponded with the employment agency with the specific purpose of 17 |
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743 | 742 | | securing employment through that employment agency; 18 |
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744 | 743 | | (8)(A) Every employment agency shall inform the public by a 19 |
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745 | 744 | | conspicuous sign or poster that the employment agency is subject to the 20 |
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746 | 745 | | requirements of this subchapter, which is administered and enforced by the 21 |
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747 | 746 | | Division of Labor. 22 |
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748 | 747 | | (B) The division shall prepare and distribute the sign or 23 |
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749 | 748 | | poster to be used by agencies to comply with this subdivision (8); 24 |
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750 | 749 | | (9) No employment agency or its agents or employees shall 25 |
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751 | 750 | | knowingly send an applicant to any place where a strike, lockout, or other 26 |
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752 | 751 | | labor dispute exists; 27 |
---|
753 | 752 | | (10) No agency shall use any trade name or business identity 28 |
---|
754 | 753 | | similar to, or reasonably likely to be confused with, the trade name or 29 |
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755 | 754 | | business identity of an existing agency or any governmental nonprofit 30 |
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756 | 755 | | employment agency; 31 |
---|
757 | 756 | | (11) No employment agency shall refer an applicant to a 32 |
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758 | 757 | | situation, employment, or occupation prohibited by law; 33 |
---|
759 | 758 | | (12) No employment agency shall charge a fee to an employee for 34 |
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760 | 759 | | any services other than actual placement of an applicant; 35 |
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761 | 760 | | (13) No employment agency shall charge an applicant a fee for 36 SB278 |
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762 | 761 | | |
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763 | 762 | | 21 02/21/2025 3:52:17 PM LGL103 |
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764 | 763 | | accepting employment with the employment agency or any subsidiary of that 1 |
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765 | 764 | | agency; 2 |
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766 | 765 | | (14) Any information regarding an applicant's background or 3 |
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767 | 766 | | credit, from whatever source obtained, shall be used for no purpose other 4 |
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768 | 767 | | than assisting the applicant in securing employment. However, an employment 5 |
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769 | 768 | | agency may use background and credit information regarding an applicant in 6 |
---|
770 | 769 | | determining whether to conduct placement services for the applicant if the 7 |
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771 | 770 | | applicant gives written authorization for securing the information and 8 |
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772 | 771 | | understands the purpose for which the information is secured; 9 |
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773 | 772 | | (15) No employment agency or its agents or employees shall 10 |
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774 | 773 | | engage in any practice that discriminates against any person on the basis of 11 |
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775 | 774 | | race, color, sex, age, religion, or national origin; 12 |
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776 | 775 | | (16) Under no circumstances shall more than one (1) fee for any 13 |
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777 | 776 | | one (1) placement be charged any applicant; 14 |
---|
778 | 777 | | (17) No contracts, forms, or schedules used by employment 15 |
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779 | 778 | | agencies shall contain any provisions in conflict with the provisions of this 16 |
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780 | 779 | | subchapter; and 17 |
---|
781 | 780 | | (18) All refunds due shall be made by the agency by cash, check, 18 |
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782 | 781 | | or money order promptly when due. 19 |
---|
783 | 782 | | 20 |
---|
784 | 783 | | 11-11-226. Designation of manager required. 21 |
---|
785 | 784 | | (a) Every employment agency shall designate an agency manager at each 22 |
---|
786 | 785 | | office location of that agency, who shall be responsible for the general 23 |
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787 | 786 | | management, administration, and operation of that office location. 24 |
---|
788 | 787 | | (b) The agency manager must comply with the licensing requirements of 25 |
---|
789 | 788 | | §§ 11-11-210 — 11-11-212, 11-11-214, 11-11-217, 11-11-218, 11-11-220(a)(1) 26 |
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790 | 789 | | and (b), and 11-11-226. 27 |
---|
791 | 790 | | (c) Every employment agency must maintain an agency manager at each of 28 |
---|
792 | 791 | | its office locations. 29 |
---|
793 | 792 | | 30 |
---|
794 | 793 | | 11-11-227. Fee restrictions and requirements. 31 |
---|
795 | 794 | | (a) When employment lasts less than ninety (90) calendar days, 32 |
---|
796 | 795 | | regardless of the reason, no employment agency may charge an employee a fee 33 |
---|
797 | 796 | | of more than one-ninetieth (1/90th) of the permanent placement fee for each 34 |
---|
798 | 797 | | calendar day of the employment. Under no circumstances shall the fee exceed 35 |
---|
799 | 798 | | twenty percent (20%) of an employee's actual gross earnings if employment 36 SB278 |
---|
800 | 799 | | |
---|
801 | 800 | | 22 02/21/2025 3:52:17 PM LGL103 |
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802 | 801 | | lasts less than thirty (30) days or forty percent (40%) of an employee's 1 |
---|
803 | 802 | | actual gross earnings if employment lasts more than thirty (30) days but less 2 |
---|
804 | 803 | | than ninety (90) days. 3 |
---|
805 | 804 | | (b)(1) When a promissory note is used by the agency, it shall be 4 |
---|
806 | 805 | | clearly identified as such and shall not be executed until the placement is 5 |
---|
807 | 806 | | made. 6 |
---|
808 | 807 | | (2) The defense of no or insufficient consideration shall be 7 |
---|
809 | 808 | | good as against a holder of any such employment agency fee note. 8 |
---|
810 | 809 | | (c)(1) When a dispute concerning a fee exists, the Division of Labor 9 |
---|
811 | 810 | | may conduct an investigation to determine all of the facts concerning the 10 |
---|
812 | 811 | | dispute. Thereafter, the Director of the Division of Labor shall issue a 11 |
---|
813 | 812 | | decision and order resolving the dispute. 12 |
---|
814 | 813 | | (2) Any person aggrieved by this decision and order may obtain 13 |
---|
815 | 814 | | review of this decision and order pursuant to § 11 -11-222. 14 |
---|
816 | 815 | | (d)(1) Any schedule of fees to be charged by an employment agency for 15 |
---|
817 | 816 | | its services shall be furnished to all applicants upon making application 16 |
---|
818 | 817 | | with the agency. 17 |
---|
819 | 818 | | (2)(A) The forms, fee schedules, and contracts utilized by an 18 |
---|
820 | 819 | | employment agency shall contain no ambiguous, false, or misleading 19 |
---|
821 | 820 | | information. 20 |
---|
822 | 821 | | (B) No contract or fee schedule shall contain smaller than 21 |
---|
823 | 822 | | eight-point type. 22 |
---|
824 | 823 | | (e)(1) All fee schedules used in the business of an employment agency 23 |
---|
825 | 824 | | must be furnished to job applicants and fee -paying employers and shall state 24 |
---|
826 | 825 | | in dollars and cents the amount of any fee charged by the agency for its 25 |
---|
827 | 826 | | services. 26 |
---|
828 | 827 | | (2) Percentages shall not be used by agencies in schedules of 27 |
---|
829 | 828 | | fees to be charged for their services, except when the annual salary for a 28 |
---|
830 | 829 | | job is twelve thousand dollars ($12,000) or more. 29 |
---|
831 | 830 | | (f) It shall be unlawful for any employment agency to impose, enforce, 30 |
---|
832 | 831 | | collect, or receive a fee for performance of any service for a job applicant, 31 |
---|
833 | 832 | | or for a prospective employer, unless the agency makes every reasonable 32 |
---|
834 | 833 | | effort to disclose the exact dollar amount of the fee to the applicant or 33 |
---|
835 | 834 | | prospective employer prior to commencement of employment of an applicant by 34 |
---|
836 | 835 | | an employer. 35 |
---|
837 | 836 | | (g) Nothing in this section or this subchapter shall be construed to 36 SB278 |
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838 | 837 | | |
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839 | 838 | | 23 02/21/2025 3:52:17 PM LGL103 |
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840 | 839 | | prohibit an employment agency from contracting with an employer on a fee -paid 1 |
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841 | 840 | | basis to pay the fee for the placement services for an employee without an 2 |
---|
842 | 841 | | actual job placement or to prohibit an agency from charging a fee to an 3 |
---|
843 | 842 | | employer for a retained services contract to search for applicants for an 4 |
---|
844 | 843 | | employer without an actual job placement. 5 |
---|
845 | 844 | | 6 |
---|
846 | 845 | | 11-11-228. Filing of fee schedule, forms, and contracts required. 7 |
---|
847 | 846 | | (a) It shall be the duty of every employment agency to file with the 8 |
---|
848 | 847 | | Division of Labor a schedule of all fees, charges, and commissions that the 9 |
---|
849 | 848 | | agency expects to charge and collect for its service, together with a copy of 10 |
---|
850 | 849 | | all forms and contracts to be used in dealings with the public in the 11 |
---|
851 | 850 | | operation of its business. 12 |
---|
852 | 851 | | (b) The fee schedules, contracts, and forms shall be filed with the 13 |
---|
853 | 852 | | division on the date of the agency's application for initial or renewal 14 |
---|
854 | 853 | | licensing under this subchapter. 15 |
---|
855 | 854 | | (c) Any amendments or supplements to fee schedules, contracts, or 16 |
---|
856 | 855 | | forms filed with the division must be filed at least fifteen (15) days before 17 |
---|
857 | 856 | | the amendment or supplement is to become effective. 18 |
---|
858 | 857 | | (d) It shall be unlawful for any employment agency to charge, demand, 19 |
---|
859 | 858 | | collect, or receive a greater compensation for any service performed by the 20 |
---|
860 | 859 | | agency than is specified in fee schedules filed with the division or than is 21 |
---|
861 | 860 | | specified by this subchapter. 22 |
---|
862 | 861 | | 23 |
---|
863 | 862 | | 11-11-229. Records required. 24 |
---|
864 | 863 | | (a) It shall be the duty of every employment agency to keep a complete 25 |
---|
865 | 864 | | record of all orders for employees that are received from prospective 26 |
---|
866 | 865 | | employers. This record shall contain the date when the order was received, 27 |
---|
867 | 866 | | the name and address of the employer seeking the services of an employee, the 28 |
---|
868 | 867 | | name of the individual placing the order, the duties of the position to be 29 |
---|
869 | 868 | | filled, the qualifications required of the employee, the salary or wages to 30 |
---|
870 | 869 | | be paid, and the probable duration of the job. 31 |
---|
871 | 870 | | (b) It shall be the duty of every employment agency to keep a complete 32 |
---|
872 | 871 | | record of each applicant who is referred by the agency to an employer for a 33 |
---|
873 | 872 | | job interview. This record shall contain the date when the applicant was 34 |
---|
874 | 873 | | referred to a prospective employer for a job or interview, the name of the 35 |
---|
875 | 874 | | applicant, and the name of the firm to whom the applicant is referred. 36 SB278 |
---|
876 | 875 | | |
---|
877 | 876 | | 24 02/21/2025 3:52:17 PM LGL103 |
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878 | 877 | | (c)(1) It shall be the duty of every employment agency to keep a 1 |
---|
879 | 878 | | complete register called a “business transaction record”, which shall consist 2 |
---|
880 | 879 | | of the name of the individual placed, the date of the placement, the name of 3 |
---|
881 | 880 | | the employer, the starting date of the position, the starting salary, the 4 |
---|
882 | 881 | | amount of the fee charged, and the remarks column. 5 |
---|
883 | 882 | | (2) The remarks column will state the amount of any adjustment 6 |
---|
884 | 883 | | or refund made. 7 |
---|
885 | 884 | | (d)(1) Prior to referral of any person to a job or interview or prior 8 |
---|
886 | 885 | | to placement of any job advertisement, an employment agency must have a 9 |
---|
887 | 886 | | current bona fide job order. 10 |
---|
888 | 887 | | (2) It shall be the duty of every employment agency to maintain 11 |
---|
889 | 888 | | a copy of any job advertisement and the job order pertaining to any 12 |
---|
890 | 889 | | advertisement in a readily available record. 13 |
---|
891 | 890 | | (e) All of the records listed in this section shall be kept in the 14 |
---|
892 | 891 | | employment agency office and shall be open during office hours to inspection 15 |
---|
893 | 892 | | by the Division of Labor and its duly authorized agents. 16 |
---|
894 | 893 | | (f) No employment agent or his or her employee shall knowingly make 17 |
---|
895 | 894 | | any false entry or omission in the records. 18 |
---|
896 | 895 | | 19 |
---|
897 | 896 | | SECTION 2. Arkansas Code § 19 -6-201(17), concerning the enumeration of 20 |
---|
898 | 897 | | general revenues of the state, is repealed. 21 |
---|
899 | 898 | | (17) Employment agency licenses, as enacted by Acts 1975, No. 22 |
---|
900 | 899 | | 493, known as the “Arkansas Private Employment Agency Act of 1975”, and all 23 |
---|
901 | 900 | | laws amendatory thereto, § 11 -11-201 et seq.; 24 |
---|
902 | 901 | | 25 |
---|
903 | 902 | | 26 |
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