Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-26
D. c. Charges
Abuses Rife;
BiIking Cited
BY GRACE BASSETT
Star Staff Writer

,Ile DlSIrlCI.
City officials insisted the
business of placing workers
was rife with abuses impossible
10 curb under present law.
They urged District Subcom-
nittee Chairman Morse, Demo-
,rat of Oregon. to recommend
a bill handing the Commits
Sioners broad regulating powers
and fixing ceilings on employ
ment agency fees.
Agency executives countered
that few unsavory operators
were running the reputation of
the placement profession. Irreg-
ularities could be eliminated by
strict enforcement of present
law and by establishment of
a watchdog board to review
licenses and complaints.
More Witnesses Called
These two opposing views are
to be balanced by the Morse
subcommittee after the hear
ing record closes July 5. Sem
ator Morse, who sponsored the
bill, has called more witnesses
morning.
The Assistant Corporation
Counsel Robert F. Kneipp,
representing the Commission
erS. said the current law could
not cope with these reported
practices:
Agencies take fees, and then
ignore the plight of job seekers.
Exorbitant fees exceed the
newly-placed employees salary
for several weeks.
Agencies split fees paid by
job applicants with employers,
who then dismiss workers and
wait for the next applicant
sent by the agency.
Licensing Fee
The Commissioners submit
ted 81 amendments, mostly to
strengthen administration.
They wanted a 5000 licensing
fee and a $1,000 bond to be
posted by agencies. Also sug-
gested were projections for the
minimum wage guarantee to
workers who otherwise would
pay placement agencies beyond
what they themselves needed
for food and lodging.
Carrie L. Allgood, of the
Minimum Wage Board, said
she had received complaints
that a job applicant was given
a $40 weekly salary and owed
a $127 placement fee. She paid
the fee, but was fired in five
weeks. So, she paid the agency
IS per cent of wages actually
earned.
One agency employee COM
planned she had been paid $13
instead of $500 due. Her place
nent sheets proving her COM
missions disappeared, accord
ing to the report given the
board, and the company could
not be forced to keep records.
Rendezvous for Pickups
Miss Allgood cited board tes-
timony that one agency was
used as a rendezvous for pickup
dates and drinking. At another,
a job applicant repeatedly
found a 500 a week job
through an agency. but re-
signed after two days because
the job was misrepresented.
She claimed she was not
paid for the two days work but
was charged $165 by the agency
on the basis of a Six-month
salary.
The subcommittee was told
oy R. Frank Jones, a Washing
ton Urban League spokesman,
that one local applicant paid a
registration fee with a place
ment agency. Then he was
called by the person with whom
ne had contracted to an apart
ment meeting with a homo
sexual.
II was shocked and surprised
to hear complaints given this
subcommittee with no docu-
nentation," Kleath A. Kembel,
counsel of the National En-
Association, told Sem
ator Morse.
Simple Notification
Mr.. Kembel, representing the
agencies, decried the
practice of regarding a tele-
phone call as a complaint.
Accused are entitled to hear
heir accusers and to answer
charges as a matter of simple
ratification, as well as equity,
he said.
Mr.. Kembels suggestion was
TO establish an advisory board
representing licensing author
ties, the public employment
agency owners and employers.
This board, by checking an
agency operation, could work
out local problems promptly,
ne promised. He said the plan
worked well in Indiana and
Ohio.
Theodore Wilson. who runs
L personnel office in the Dis
trict, told the subcommittee
he maximum charges set in
jhe Morse bill would force him
to close his agency. These
naximumS are 10 per cent Of
wages paid placed employees for
DO days, 20 per cent of wages
for more than 80 days or 5 per
cent of annual wages if guar
anteed by a job contract.