N.Y. General Business Law 194 – Employment agency fees; reimbursement from employee to employer prohibited
§ 194. Employment agency fees; reimbursement from employee to employer prohibited. 1. As used in this section:
Terms Used In N.Y. General Business Law 194
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Commissioner: means the industrial commissioner of the state of New York, except that in the application of this article to the city of New York the term "commissioner" means the commissioner of consumer affairs of such city. See N.Y. General Business Law 171
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- employer fee paid employment agency: means any person who on behalf of employers procures or attempts to procure employees for "Class B" employment (as defined in section one hundred eighty-five of this article) and who in no instance charges a fee directly, or indirectly, to persons seeking such employment even though a fee may be charged to employers seeking the services of such employees, and who engages in no activity constituting the operation of an employment agency as defined in section one hundred seventy-one of this chapter and who in no instance enters into any arrangement through which the employer fee paid employment agency receives remuneration or any other thing of value from any person, firm or corporation which collects fees from applicants. See N.Y. General Business Law 191
- Employment agency: means any person (as hereinafter defined) who, for a fee, procures or attempts to procure:
(1) employment or engagements for persons seeking employment or engagements, or
(2) employees for employers seeking the services of employees. See N.Y. General Business Law 171 - Fee: means anything of value, including any money or other valuable consideration charged, collected, received, paid or promised for any service, or act rendered or to be rendered by an employment agency, including but not limited to money received by such agency or its emigrant agent which is more than the amount paid by it for transportation, transfer of baggage, or board and lodging on behalf of any applicant for employment. See N.Y. General Business Law 171
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means any individual, company, society, association, corporation, manager, contractor, subcontractor, partnership, bureau, agency, service, office or the agent or employee of the foregoing. See N.Y. General Business Law 171
- Trustee: A person or institution holding and administering property in trust.
(a) "Commissioner" means the commissioner of labor.
(b) "Employer" means an individual, partnership, association, corporation, legal representative, trustee, receiver, trustee in bankruptcy or common carrier by rail, motor, water, air or express company doing business or operating within the state. The term "employer" shall not include a governmental agency.
(c) "Employee" means any person employed for hire by any employer in any employment.
2. No employer or its agent shall require, request, suggest or knowingly permit any employee of such employer to reimburse the employer for the cost of a fee paid by the employer to an employment agency or to an employer fee paid employment agency or to make any other payment on account of the employee's termination or resignation from employment.
3. (a) If the commissioner determines that an employer or its agent has violated a provision of this section, the commissioner shall issue to the employer an order which shall describe the alleged violation. In addition to directing reimbursement to the employee and requiring the further payment to the employee of a sum in the amount equal to payment requested or received from that employee, such order may direct payment to the commissioner for deposit in the treasury of the state of a further sum as a civil penalty not to exceed five hundred dollars.
(b) Any order issued under paragraph (a) of this subdivision shall be deemed a final order of the commissioner and not subject to review by any court or agency unless within thirty days following service of the order the employer files a petition with the industrial board of appeals for a review of the order.
(c) Provided that no proceeding for administrative or judicial review pursuant to this chapter shall then be pending and that the time for initiation of such proceeding shall have expired, the commissioner may file with the county clerk of the county where the employer resides or has a place of business the order of the commissioner, or the decision of the industrial board of appeals containing the amount found to be due including the civil penalty, if any. The filing of such order or decision shall have the full force and effect of a judgment duly docketed in the office of such clerk. The order or decision may be enforced by and in the name of the commissioner in the same manner, and with like effect as that prescribed by the civil practice law and rules for the enforcment of a money judgment.
(d) The civil penalty provided for in this section shall be in addition to and may be imposed with any other remedy or penalty provided for in this chapter.
4. No agreement by an employee or prospective employee to reimburse an employer for the cost of a fee of an employment agency or an employer fee paid employment agency or to become liable to the employer for any payment on account of the employee's termination or resignation from employment shall be enforceable.