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