k/l 

OFFICE OF 

THE ATTORNEY GENERAL 

., 

Aummv. TEXAS 

PRICE DANIEL 

pmRNEY GENERAL Ivovember 14, 1947 

Hon. M. B. Morgan, Commlssloner Opinion No. V-430 

Bureau of Labor Statistics 

Austin, Texas Re: Whether an emplogment agency which 

collects its fees 

from employers lnstead of employees 

1s covered by Art. 

5221a-4, V. C. S.,( 

and a related questlon. 

Bear Sir: 

Your oNgina request for an oplnioti, dated~ September 23; havlugbeea withdrawn and later revived by your 

letter of October 20, we'quote in part from both of your 

requests: 

" . . :. A limited partnership under the name 

of Man-Ser-Co., Ltd.,'managed,bp James H. Bash, 

proposes to operate as iollows: 

!'Man-Ser-Co., Ltd., will undertake to. sell 

employers upon the proposition that they can hire 

employees.who are bettea'stiited to their needs if 

they will engage the services of Man-Ser-Co., Ltd. 

to study their job requirements, then to advertise 

for such employees as they require., Man-Ser-Co., 

Ltd., will subject the applicants to intelligence, 

experience, education, psychological and'aptitude 

tests to determlne.thelr fitness for the particular work which the successful applicant wlll'be 

required to do for the employer. The advertisements will be ~run in the dally newspapers in the 

name of Man-&r-Co., Ltd. The applicants will report to the offices of Man-Ser-Co.;Ltd. The advertisements may be by means of cards, circulars, 

signs, In newspapers or other publications, and 

will set PoFth the name and address of Man-Ser-Co., 

Ltd. The statements contained therein will be true 

and not misleading. Man-Ser-Co., Ltd., will not 
Hon. M. B. Morgan, page 2, V-430. 

procure common laborers ore agricultural workers . At no tlme.will any aPPlicant for employment, Including the successful applicant, 

pay or promise to pay anything whatsoever to 

Man-Ser-Co., Ltd. The entire compensation of 

Man-Ser-Co., Ltd., will come from the employer. 

. . . . 

~"Our questions are: 

,"l. Will it be permissible to allow " 

fan agenay to operate who charges 

only the employer? 

"2 ; What control-$hall we have in regard to fees? Shall the charges 

td the employers be the ssme'as 

'that stipulated by the law for employees?' 

With regard to $XIF first question, the pertinent 

parts of Article 5221a-4 read as follows: 

%&Ion 1,. '(b)~ 'Feel means anything of 

value including money,or other valuable con- ., 

tilderation or services br.,the promise of any Lo 

of the foregoing reoelved by an employment 

" '(e) Tmploymedt or Labor 

Agent"mear;s'~r;y"person ithis State who f6r 

a fee offers ;or~attempts to procure or procties 

employment fdr employees, ,or without a fee offers'or attempts to proctipe or.proo~ss employineit fo?.common l%or&s or ixgrlcultural workers, 

dr, an? person who for a fee offers .or attempts to 

procure or~procures.employees for employers', nor 

withoutis fee offers or,at$empts to procure',or 

prohre* common laborers,or agricultural workers 

for etiployers, or',any person; ,regardless of 

whether a.fee~is.,rqceived or due,.offers or at- 

~tempts to supply'or supplies the services $f corn- 

;"mon pr ag+?ult~aI workers to.:+ny peTson. 

~Unquestlonably, employm6nt @enc.lies relying upon 

employers'for their fees are covered by the abov&statute. 
Hon. M. B. Morgan, page 3, V-430 

Such agency aomes within the particular pt of the 

definition of "em+?oyment or labor agent which,speclfically reSers to any pers?n nho for a fee offers or 

attempts to procure or procures employees .for employers". 

The definition of "f&e" in the statute Is lncluspve of 

the SitwtiOn you have reference to where the e 

pays a fee to the agency for choosing quallfle +-= personnel. 

Reducing the definition of "fee" to its essential components, for appllcatlon to your fact situation, it reads 

as follows: 

_'; 

"lb) 'Fee' means anythlng~b? value . A . 

received by an employment agency from . . . v 

person seeking employment or employees . . . 

The logical interpretation of the above language is that it refers to disjunctive positions and means 

"fromany 

employees. 

person seeking employment or any persria seeking 

The alternative interpretation would.be that 

the enunclatlon means "from any person seeking employment 

or Srom employees." We think the latter interpretation to 

be an unlikely and illogical disjunctive as it would render 

ineff.ectlve the part@ular part of the statute quoted above 

~vhlch defines an employment agency as including the sltuatloti where a person, for a fee, procures employees foti 

employers. 

We therefore answer your first question to the 

effect tbst; an employment agency operating at the~behest 

of the employer, charging Sees of the employer alotie; is 

authortied to do so by the provisfons of Artlcl6 522la+ 

and is covered by the provisions and requ-lrements therein 

relating to all employment agencies, except as hereit+fter 

noted. 

Your next question relates to the control of 

the Oommlsslon of the,Bureau OS Labor Statlstlcs over the 

amount OS the fees charged the employer by the employment 

agency. 

!Phe provislons.of the'statute applging to the 

fees to be charged nead as follows: 
'174 

Eon. M. B. Morgan, Page 4, v-43O 

"Sec. 11. Where a fee. 1s charged for. obtaining employment, such fee In no event shall 

exieed the sun'of Three ($3) Dollars, which may 

be collected, from the'applicant only after employment has been obtained and accepted by the 

applicant; provided, however, employment or 

labor agents engaged exclusively in providing 

employment for skilled, professional, or cl&ical positions may charge, with the written consent of the applicant, a fee, not to exceed 

thirty (30) per centum of the first month's salary, which may.be collected from the applicant 

only after employment has be&n obtained and accepted by the applicant." 

It will be seen that this Section applies only 

where a fee. Is charged for obtaining employment. This provision of the statute has no aDnllcatlon where a fee Is 

charged for obtaining employees: There'can be no'doubt that 

the undevtatute is to protect those 

seeking employment from exploitation by an employm&nt agency 

that mlght be tempted to take advantage of'the vulnerability 

of the employment seeker. This consideration does not obtail 

where the employers are seeking competent em lo ees' and are 

willing to pay a fee to an employment agency --+iF-' t t proposes 

to furnish such employees. 

We advise you as to your second question that the 

Commi6sloner of the Buieau of Labor Statistlctis not authorized to control the amount of the fee that an einployment agency may charge an employer for obtaining employees. 

In this holding, we follow Opinion No. O-7299, 

previously rendered by this department. 

SUMMARY 

An employment agency which operates by 

charging employers a fee for obtaining employees 

is authorized to do so by the provisions of Art. 

5221a-4, V. C. S., except that the amount of the 

fee to be charged employers by the employment 
Hon. M. B. Morgan, page 5, V-430 

2%% 

relates 

. 

is not llmlted by the provisions-&d-7-; JLrfs -4 --:, 

11 of ht. 5221a-4 since this Section 

only to the fee which an employment 

agency may charge employees. 

Very truly yours 

ATTORNEYW?RRALOFTRXAS 

. 

RJC:rt 

BY 

APPROVED: