N.Y. General Business Law § 185: Fees

§ 185. Fees. 1. Circumstances permitting fee. An employment agency

shall not charge or accept a fee or other consideration unless in

accordance with the terms of a written contract with a job applicant and

after such agency has been responsible for referring such job applicant

to an employer or such employer to a job applicant and where as a result

thereof such job applicant has been employed by such employer, except

for class "C" employment: (a) after an agency has been responsible for

referring an artist to an employer or such employer to an artist and

where as a result thereof such artist has been employed by such

employer; or (b) after an agency represents an artist in the negotiation

or renegotiation of an original or pre-existing employment contract and

where as a result thereof the artist enters into a negotiated or

renegotiated employment contract. For class "C" employment pursuant to

this paragraph, an employment agency shall provide an artist with a

statement setting forth in a clear and concise manner the provisions of

this section and section one hundred eighty-six of this article.

The maximum fees provided for herein for all types of placements or

employment may be charged to the job applicant and a similar fee may be

charged to the employer provided, however, that with regard to

placements in class "B" employment, a fee of up to one and one-half

times the fee charged to the job applicant may be charged to the

employer. By agreement with an employment agency, the employer may

voluntarily assume payment of the job applicant's fee. The fees charged

to employers by any licensed person conducting an employment agency for

rendering services in connection with, or for providing employment in

classes "A", "A-1" and "B", as hereinafter defined in subdivision four

of this section where the applicant is not charged a fee shall be

determined by agreement between the employer and the employment agency.

No fee shall be charged or accepted for the registration of applicants

for employees or employment.

2. Size of fee; payment schedule. The gross fee charged to the job

applicant and the gross fee charged to the employer each shall not

exceed the amounts enumerated in the schedules set forth in this

section, for any single employment or engagement, except as hereinabove

provided; and such fees shall be subject to the provisions of section

one hundred eighty-six of this article. Except as otherwise provided

herein, and except for class "C" employment, an employment agency shall

not require an applicant while employed in the continental United

States, and paid weekly to pay any fee at a rate greater than in ten

equal weekly installments each of which shall be payable at the end of

each of the first ten weeks of employment, or if paid less frequently,

in five equal installments, each of which shall be payable at the end of

the first five pay periods following his employment, or within a period

of ten weeks, whichever period is longer. An employer's fee shall be due

and payable at the time the applicant begins employment, unless

otherwise determined by agreement between the employer and the agency.

3. Deposits, advance fees. An employment agency shall not require or

accept a deposit or advance fee from any applicant.

4. Types of employment. For the purpose of placing a ceiling over the

fees charged by persons conducting employment agencies, types of

employment shall be classified as follows:

Class "A"--domestics, household employees, unskilled or untrained

manual workers and laborers, including agricultural workers;

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

mechanics;

Class "B"--commercial, clerical, executive, administrative and

professional employment, all employment outside the continental United

States, and all other employment not included in classes "A", "A1", "C"

and "D";

Class "C"--theatrical engagements;

Class "D"--nursing engagements as defined in article one hundred

thirty-nine of the education law.

5. Fee ceiling: For a placement in class "A" employment the gross fee,

including the deposit if any, shall not exceed, in percentage of the

first full month's salary or wages, the following:

where no meals or lodging are provided ............................ 10 %

where one meal per working day is provided ........................ 12 %

where two meals per working day are provided ...................... 14 %

where three meals and lodging per working day are

provided .......................................................... 18 %

Where all parties to the employment agreement understand or agree at the

time the employment is entered into that it shall be for a period

shorter than one month, the gross fee shall not exceed ten per cent,

twelve per cent, fourteen per cent or eighteen per cent respectively of

the salary or wages actually paid.

6. Fee ceiling: For a placement in Class "A1" employment the gross fee

shall not exceed one week's wages where all parties to the employment

agreement understand or agree at the time the employment is entered into

that it shall be for a period for ten weeks or more. Where all parties

to the employment contract agree and understand at the time the

employment contract is entered into that it shall be for a period

shorter than ten weeks, the gross fee shall not exceed ten per cent of

the wages or salary actually received.

7. Fee ceiling: For a placement in Class "B" employment the gross fee

shall not exceed, in percentage of the first full month's salary or

wages, the following:

where such first full month's salary or wages is

less than $750 .................................................... 25 %

at least $ 750 but less than $ 950 ................................ 35 %

at least $ 950 but less than $1150 ................................ 40 %

at least $1150 but less than $1350 ................................ 45 %

at least $1350 but less than $1500 ................................ 50 %

at least $1500 but less than $1650 ................................ 55 %

at least $1650 or more ............................................ 60 %

Provided however, that where the placement is for employment in which

the applicant will be paid on a straight commission basis or on the

basis of a drawing account plus commissions, the gross fee shall be

based on percentages in the above schedule applied to an amount

equivalent to one-twelfth of the estimated first year's earnings, as

estimated by the employer.

Where all parties to the employment contract agree and understand at

the time the employment contract is entered into that it shall be for a

period shorter than four months the gross fee shall not exceed fifty

percent of the fee prescribed in the schedule in this subdivision or ten

percent of the wages or salary actually received, whichever is less.

8. Fee ceiling: For a placement in class "C" employment the gross fee

shall not exceed, for a single engagement, ten per cent of the

compensation payable to the applicant, except that for employment or

engagements for orchestras and for employment or engagements in the

opera and concert fields such fees shall not exceed twenty per cent of

the compensation.

9. Fee ceiling: For a placement in class "D" employment the gross fee

shall not exceed, for a single engagement, the following:

(1) for private nursing duty, five per cent of the salary or wages

received each week through the first ten weeks of that engagement only,

and such fee shall be due and payable at the end of each such week;

(2) for any other nursing duty, the amount of the first week's salary

or wages unless the first year's computed salary or wages to be derived

for at least one year's employment is twenty-five hundred dollars or

more, in which event the gross fee shall not exceed, in percentage of

such salary or wages, the following:

where such first year's salary or wages is

at least $2500 but less than $3000 ............................. 2 1/2 %

at least $3000 but less than $3500 ............................. 3 %

at least $3500 but less than $4000 ............................. 3 1/2 %

at least $4000 but less than $4500 ............................. 4 %

at least $4500 but less than $5000 ............................. 4 1/2 %

$5000 or more .................................................. 5 %

10. Notwithstanding any other provision of law to the contrary, no fee

may be charged or collected for services rendered by an employment

agency not licensed pursuant to section one hundred seventy-two of this

article at the time such services were rendered. In an action to collect

a fee, the court shall void all or any part of an agreement or contract

with an employment agency that did not have a valid license at the time

the contract was entered into or services were rendered; however, such

contract shall not be considered void if a court finds a good faith

effort by an employment agency to maintain its license despite clerical

error or delay by the department of labor or the New York city

department of consumer affairs.