## 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Your oNgina request for an oplnioti, dated~September 23; havlugbeea withdrawn and later revived by your letter of October 20, we'quote in part from both of your requests: "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 employersupon the propositionthat 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 successfulapplicantwlll'be required to do **for** the employer. The advertisements will be ~runin the dally newspapers in the name of Man-&r-Co., Ltd. The applicantswill report to the offices of Man-Ser-Co.;Ltd. The advertisements

may be by means of cards, circulars, signs, In newspapersor other publications,and will set PoFth the name and address of Man-Ser-Co., Ltd. The statementscontained therein will be true and not misleading. Man-Ser-Co.,Ltd., will notHon. M. B. Morgan, page 2, V-430.

procure common laborers ore agricultural

workers . At no tlme.willany aPPlicant for employment, Including the successfulapplicant, pay or promise to pay anythingwhatsoever 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 permissibleto allow " fan agenay to operatewho 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)~

'Feelmeans anything of value includingmoney,or other valuable con- ., tilderation

or services br.,the promise of any Lo of the foregoingreoelvedby an employment

" '(e) Tmploymedt or Labor Agent"mear;s'~r;y"person i this 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?.commonl%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$emptsto procure',or prohre* common laborers,or agricultural

workers for etiployers,

or',any person; ,regardless of whether a.fee~is.,rqceived or due,.offersor 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 particularpt of the definitionof "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 definitionof "f&e" in the statute Is lncluspveof the **SitwtiOn** you have reference to where the e +-= pays a fee to the agency for choosing quallfle personnel. Reducing the definitionof "fee" to its essentialcomponents, for appllcatlonto your fact situation, it reads as follows: _';

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

. A

. receivedby an employmentagency from

. . . v person seeking employmentor employees

. . . The logical interpretation of the above language is that it refers to disjunctivepositions and means "fromany employees.

person seeking employmentor 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 illogicaldisjunctiveas it would render ineff.ectlve

the part@ular part of the statute quoted above ~vhlch defines an employmentagency as including the sltuatloti where a person, for a fee, procures employees foti employers.

We thereforeanswer your first question to the effect tbst;

an employment agency operating at the~behest of the employer,charging Sees of the employer alotie; is authortiedto do so by the provisfons of Artlcl6 522la+ and is covered by the provisionsand requ-lrements therein relating to all employmentagencies, except as hereit+fter noted.
Your next question relates to the control of the Oommlsslonof the,BureauOS Labor Statlstlcsover the amount OS the fees charged the employer by the employment agency. !Phe

provislons.ofthe'statuteapplging 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 employmenthas been obtained and acceptedby the applicant;

provided,however, employmentor labor agents engaged exclusivelyin providing employmentfor skilled,professional, or cl&ical positionsmay 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 employmenthas be&n obtainedand accepted by the applicant."
It will be seen that this Section applies only where a fee.

Is charged for obtainingemployment. This provision of the statute has no aDnllcatlon where a fee Is charged for obtainingemployees: There'can be no'doubt that the undevtatute is to protect those seeking employmentfrom exploitation by an employm&ntagency that mlght be tempted to take advantageof'the vulnerability of the employmentseeker. This consideration does not obtail where the employersare seeking competent em lo ees' and are willing to pay a fee to an employmentagency t t proposes --+iF-' to furnish such employees.

We advise you as to your second question that the Commi6sloner

of the Buieau of Labor Statistlcti s not authorized to control the amount of the fee that an einployment agency may charge an employer for obtainingemployees.

In this holding, we follow OpinionNo. O-7299, previously

renderedby this department.

SUMMARY
An employmentagency which operatesby charging employers a fee for obtainingemployees is authorizedto do so by the provisionsof Art. 5221a-4,

V. C. S., except that the amount of the fee to be charged employersby the employmentHon. M. B. Morgan, page 

## 5,V-430



# 2%% relates .

is not llmltedby 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 

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