Chapter 11. Fee Charging Employment Agencies
Regulation .01 Definitions.LinkCopy Citation
A.
The following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Applicant” means a person, employed or unemployed, who either seeks employment or enters into an arrangement concerning employment through an employment agency. “Applicant” does not include either a person applying for an employment agency license or a prospective employee for an employment agency.
(2)
“Commissioner” means the Commissioner of Labor and Industry, or a duly designated representative.
(3)
“Employer” means any person, firm, corporation, partnership, or association that employs or seeks to enter into an arrangement to employ any person through an employment agency.
(4)
“Method of payment” means the specific procedure for paying the employment agency's placement fee after placement is made.
(5)
“Permanent placement fee” means the net fee charged by an employment agency for any placement after discounts or other fee reductions allowed by the agency.
Regulation .02 Out-of-State Agency.LinkCopy Citation
A.
Any out-of-State employment agency shall obtain an employment agency license and bond if the agents, managers, or counselors act as an employment agency in this State.
B.
This regulation applies to an out-of-State employment agency operating from either a permanent or a temporary place of business within the State.
Regulation .03 Providing Copies of the Law.LinkCopy Citation
An employment agency shall provide each general manager and counselor with a current copy of the employment agency law and regulations.
Regulation .04 Contracts.LinkCopy Citation
Each contract that an employment agency submits to an applicant shall:
A.
Be printed in 6-point type size or larger; and
B.
State:
(1)
"Employment shall be considered to be temporary when within 90 days after employment commences the employment is terminated through 'no fault' of the applicant, or the employment is voluntarily terminated by the applicant with 'just cause.' A temporary placement fee may be charged to any such applicant for such temporary employment, such fee not to exceed twenty (20) percent of the total compensation received or seventy-five (75) percent of the permanent placement fee for the same position, whichever is the lesser.
(2)
In bold face capital letters above signature line: “I HAVE READ AND UNDERSTAND THE ABOVE CONTRACT AND HAVE RECEIVED A DUPLICATE OF THE CONTRACT.”
(3)
In a prominent place on the first page, “Licensed and regulated by the Commissioner of Labor and Industry, State of Maryland, telephone number, area code (301) 333-4211”.
(4)
The method of payment.
In the event the employee is discharged 'for cause' or voluntarily leaves employment without 'just cause' within 90 days after employment commences, a fee not to exceed 75% of the permanent placement fee may be charged to any such applicant. "
Regulation .05 Fee Statement.LinkCopy Citation
An employment agency shall provide to each applicant a separate document clearly stating the:
A.
Fee amount;
B.
Annual interest percentage rate; and
C.
Amount of any service charge or interest.
Regulation .06 Records.LinkCopy Citation
A.
Each employment agency shall maintain a record of services provided to each employer and applicant.
B.
Each record shall:
(1)
Be maintained for a period of 2 years;
(2)
Contain the following:
(a)
The name and address of the employer and the applicant;
(b)
A description of the positions:
(i)
Offered by the employer, and
(ii)
Accepted by the applicant;
(c)
The wage or salary of the position accepted by the applicant;
(d)
The permanent or temporary placement fee;
(e)
The amount and date of any fee payment;
(f)
The amount and date of any fee refund and the reason for it; and
(g)
If the position accepted is not permanent, its expected duration.
Regulation .07 Third Party Representative.LinkCopy Citation
A.
When an employer requests a third party representative to recommend an individual for employment in the same, similar, or other affiliated place of employment, and the representative requests an employment agency to refer applicants to be interviewed, the representative shall be considered the agent of the employer.
B.
The request to the employment agency is considered to be a bona fide job order from the employer.
Regulation .08 Refunds.LinkCopy Citation
A.
An employment agency shall comply with the provisions concerning placement fee refunds set forth in Business Regulation Article, §9-318, Annotated Code of Maryland.
B.
When the Commissioner of Labor and Industry orders a refund to be made by an employment agency to an applicant, the refund shall be made within 14 calendar days from the date of the order.
Regulation .09 Fee Payment.LinkCopy Citation
A.
When an applicant is referred to the same position or employer by two employment agencies, the fee shall be paid to the employment agency which was instrumental in securing the position.
B.
An applicant who accepts an employer fee-paid position may be held liable for the fee only:
(1)
Upon employer non-payment; and
(2)
If the employment agency notified the applicant of the potential liability either in the contract or in a separate memorandum presented before the applicant accepted the position.
Regulation .10 Prohibited Solicitations and Inducements.LinkCopy Citation
An employment agency may not solicit, persuade, or induce:
A.
After receiving a fee, any applicant to leave any employment in which the employment agency has placed the applicant; or
B.
An employer to discharge an employee placed by the employment agency.
Regulation .11 Special Services Agreement.LinkCopy Citation
A.
An employment agency may negotiate a separate agreement with an employer for special services regarding:
(1)
Recruitment;
(2)
Search;
(3)
Screening;
(4)
Referrals; and
(5)
Placement.
B.
Any separate agreement may not violate the law or these regulations.
Regulation .12 Job Order Number.LinkCopy Citation
An employment agency shall:
A.
Assign each employee fee-paid or employer fee-paid position a job order number;
B.
Include the job order number assigned to the position in:
(1)
Any advertisement, and
(2)
The file of the order; and
C.
Maintain job orders in numerical sequence by job order number.
Regulation .13 Employment Counselor's License.LinkCopy Citation
A person licensed as an employment counselor by the Commissioner shall:
A.
Display the license in a prominent place at the employment agency where the counselor is employed; and
B.
When acting in the capacity of an employment counselor, use only the name in which the license is issued.
Regulation .14 Rules of Procedure for Hearings.LinkCopy Citation
A.
This regulation supplements the requirements of State Government Article, §10-208, Annotated Code of Maryland.
B.
Hearing Procedure.
(1)
During a hearing, a party in interest may make any relevant statement or argument either directly or through counsel.
(2)
Presiding Officer.
(a)
“Presiding officer” means the Commissioner or an individual authorized to conduct a hearing.
(b)
The presiding officer shall:
(i)
Call the title of the case;
(ii)
Briefly explain the purpose and nature of the hearing;
(iii)
Recite any charge, complaint, or other matter involved;
(iv)
Receive stipulations entered into by the parties; and
(v)
Administer the oath to all persons who are summoned or intend to testify.
(c)
The presiding officer may examine any witness.
(3)
Counsel for any interested party or a party may raise and address any preliminary objection, exception, or motion.
(4)
The following exhibits shall be introduced:
(a)
If the presiding officer is a designee, a copy of the letter designating the individual to preside at the hearing;
(b)
A copy of the petition, complaint, or other matter involved in the hearing; and
(c)
A copy of the notice of hearing.
(5)
Presentation of Evidence.
(a)
“Presentor” means the assistant attorney general assigned to present evidence.
(b)
The presentor shall introduce information obtained as a result of any investigation caused to be made by the Commissioner of Labor and Industry.
(c)
Subject to applicable statutes and rules governing the practice of law, each party or counsel representing a party or presentor may:
(i)
Present, examine, and cross-examine witnesses; and
(ii)
Offer nontestimonial evidence.
C.
Decision and Order.
(1)
If the presiding officer at the hearing is a designee, the presiding officer shall make findings of fact and file them with the Commissioner.
(2)
The Commissioner shall issue a decision and order containing:
(a)
Findings of fact based on evidence presented at the hearing;
(b)
Conclusions of law applying law to factual findings; and
(c)
An order disposing of the case.
(3)
A copy of the decision and order shall be served on each party or the party's counsel of record.
Chapter annotations
Authority: Business Regulation Article, §9-204, Annotated Code of Maryland
History: Effective date:
History: Regulations .01—16 effective April 4, 1973
History: Regulations .02 and .05 repealed, and .04, .09, .16—.18, and .22 amended effective February 13, 1984 (11:3 Md. R. 199)
History: Regulations .17—.22 effective April 16, 1975 (2:8 Md. R. 564)
History: Regulation .22 amended effective September 14, 1977 (4:19 Md. R. 1467)
History: Regulation .23 adopted effective September 14, 1977 (4:19 Md. R. 1467)
History: Chapter revised effective August 8, 1988 (15:16 Md. R. 1913)