NY Gen Bus L § 185 (2021)
2021 New York Laws GBS - General Business Article 11 - Employment Agencies. 185 - Fees.

§  185.  Fees.   1. Circumstances permitting fee. An employment agency shall not charge or accept  a  fee  or  other  consideration  unless  in accordance with the terms of a written contract with a job applicant and after  such agency has been responsible for referring such job applicant to an employer or such employer to a job applicant and where as a result thereof such job applicant has been employed by  such  employer,  except for  class  "C" employment: (a) after an agency has been responsible for referring an artist to an employer or such employer  to  an  artist  and where  as  a  result  thereof  such  artist  has  been  employed by such employer; or (b) after an agency represents an artist in the negotiation or renegotiation of an original or pre-existing employment contract  and where  as  a  result  thereof  the  artist  enters  into a negotiated or renegotiated employment contract. For class "C" employment  pursuant  to this  paragraph,  an  employment  agency  shall provide an artist with a statement setting forth in a clear and concise manner the provisions  of this section and section one hundred eighty-six of this article.   The  maximum  fees  provided for herein for all types of placements or employment may be charged to the job applicant and a similar fee may  be charged   to  the  employer  provided,  however,  that  with  regard  to placements in class "B" employment, a fee of  up  to  one  and  one-half times  the  fee  charged  to  the  job  applicant  may be charged to the employer. By agreement with  an  employment  agency,  the  employer  may voluntarily  assume payment of the job applicant's fee. The fees charged to employers by any licensed person conducting an employment agency  for rendering  services  in  connection with, or for providing employment in classes "A", "A-1" and "B", as hereinafter defined in  subdivision  four of  this  section  where  the  applicant  is  not charged a fee shall be determined by agreement between the employer and the employment  agency. No  fee  shall be charged or accepted for the registration of applicants for employees or employment.   2. Size of fee; payment schedule. The gross fee  charged  to  the  job applicant  and  the  gross  fee  charged  to the employer each shall not exceed the amounts  enumerated  in  the  schedules  set  forth  in  this section,  for any single employment or engagement, except as hereinabove provided; and such fees shall be subject to the  provisions  of  section one  hundred  eighty-six  of  this article. Except as otherwise provided herein, and except for class "C" employment, an employment agency  shall not  require  an  applicant  while  employed  in  the continental United States, and paid weekly to pay any fee at a rate  greater  than  in  ten equal  weekly  installments each of which shall be payable at the end of each of the first ten weeks of employment, or if paid  less  frequently, in five equal installments, each of which shall be payable at the end of the  first five pay periods following his employment, or within a period of ten weeks, whichever period is longer. An employer's fee shall be due and  payable  at  the  time  the  applicant  begins  employment,  unless otherwise determined by agreement between the employer and the agency.   3.  Deposits,  advance fees. An employment agency shall not require or accept a deposit or advance fee from any applicant.   4. Types of employment. For the purpose of placing a ceiling over  the fees  charged  by  persons  conducting  employment  agencies,  types  of employment shall be classified as follows:   Class "A"--domestics,  household  employees,  unskilled  or  untrained manual workers and laborers, including agricultural workers;   Class  "A1"--non-professional trained or skilled industrial workers or mechanics;   Class  "B"--commercial,  clerical,   executive,   administrative   and professional  employment,  all employment outside the continental United  States, and all other employment not included in classes "A", "A1",  "C" and "D";   Class "C"--theatrical engagements;   Class  "D"--nursing  engagements  as  defined  in  article one hundred thirty-nine of the education law.   5. Fee ceiling: For a placement in class "A" employment the gross fee, including the deposit if any, shall not exceed,  in  percentage  of  the first full month's salary or wages, the following:  where no meals or lodging are provided ............................ 10 % where one meal per working day is provided ........................ 12 % where two meals per working day are provided ...................... 14 % where three meals and lodging per working day are provided .......................................................... 18 %  Where all parties to the employment agreement understand or agree at the time  the  employment  is  entered  into  that  it shall be for a period shorter than one month, the gross fee shall not  exceed  ten  per  cent, twelve  per cent, fourteen per cent or eighteen per cent respectively of the salary or wages actually paid.   6. Fee ceiling: For a placement in Class "A1" employment the gross fee shall not exceed one week's wages where all parties  to  the  employment agreement understand or agree at the time the employment is entered into that  it  shall be for a period for ten weeks or more. Where all parties to the  employment  contract  agree  and  understand  at  the  time  the employment  contract  is  entered  into  that  it  shall be for a period shorter than ten weeks, the gross fee shall not exceed ten per  cent  of the wages or salary actually received.   7.  Fee ceiling: For a placement in Class "B" employment the gross fee shall not exceed, in percentage of the  first  full  month's  salary  or wages, the following:   where such first full month's salary or wages is  less than $750 .................................................... 25 % at least $ 750 but less than $ 950 ................................ 35 % at least $ 950 but less than $1150 ................................ 40 % at least $1150 but less than $1350 ................................ 45 % at least $1350 but less than $1500 ................................ 50 % at least $1500 but less than $1650 ................................ 55 % at least $1650 or more ............................................ 60 %  Provided however, that where the placement is for employment in which the applicant will be paid on a straight commission basis or on the basis of a drawing account plus commissions, the gross fee shall be based on percentages in the above schedule applied to an amount equivalent to one-twelfth of the estimated first year's earnings, as estimated by the employer.   Where  all  parties to the employment contract agree and understand at the time the employment contract is entered into that it shall be for  a period  shorter  than  four  months the gross fee shall not exceed fifty percent of the fee prescribed in the schedule in this subdivision or ten percent of the wages or salary actually received, whichever is less.   8. Fee ceiling: For a placement in class "C" employment the gross  fee shall  not  exceed,  for  a  single  engagement,  ten  per  cent  of the compensation payable to the applicant, except  that  for  employment  or engagements  for  orchestras  and  for  employment or engagements in the opera and concert fields such fees shall not exceed twenty per  cent  of the compensation.    9.  Fee ceiling: For a placement in class "D" employment the gross fee shall not exceed, for a single engagement, the following:  (1)  for  private  nursing  duty, five per cent of the salary or wages received each week through the first ten weeks of that engagement  only, and such fee shall be due and payable at the end of each such week;  (2)  for any other nursing duty, the amount of the first week's salary or wages unless the first year's computed salary or wages to be  derived for  at  least  one  year's employment is twenty-five hundred dollars or more, in which event the gross fee shall not exceed,  in  percentage  of such salary or wages, the following:    where such first year's salary or wages is at least $2500 but less than $3000 ............................. 2 1/2 % at least $3000 but less than $3500 ............................. 3     % at least $3500 but less than $4000 ............................. 3 1/2 % at least $4000 but less than $4500 ............................. 4     % at least $4500 but less than $5000 ............................. 4 1/2 % $5000 or more .................................................. 5     %   10. Notwithstanding any other provision of law to the contrary, no fee may  be  charged  or  collected  for  services rendered by an employment agency not licensed pursuant to section one hundred seventy-two of  this article at the time such services were rendered. In an action to collect a  fee, the court shall void all or any part of an agreement or contract with an employment agency that did not have a valid license at the  time the  contract  was entered into or services were rendered; however, such contract shall not be considered void if a  court  finds  a  good  faith effort  by an employment agency to maintain its license despite clerical error or delay  by  the  department  of  labor  or  the  New  York  city department of consumer affairs.