Code of Massachusetts Regulations › 454 CMR - DEPARTMENT OF LABOR STANDARDS › Title 454 CMR 24.00 - EMPLOYMENT AGENCY AND TEMPORARY WORKERS RIGHT TO KNOW REGULATIONS › Section 24.09 - Provisions and Restrictions Relating to Applicant Fees and Client Fees and Charges Assessed by Employment Agencies

Current through Register 1525, July 5, 2024
(1)
Client Fee Restrictions
. There are no restrictions on
			 Client Fees charged by an Employment Agency.
(2)
Workers or Job Applicants Who
			 Are Hired at an Annual Wage of over $40,000.00
. The provisions of
			 454 CMR 24.09(4) and (5) shall not apply to Workers or Job Applicants who are
			 hired at an annual wage of over $40,000.00, provided that any Fees or Charges
			 assessed by an Employment Agency to the Worker or Job Applicant do not violate
			 M.G.L. c. 151 or
			 454 CMR 24.00.
(3)
Written Disclosure to Job
			 Applicant
. Any Employment Agency that is not the Employer of the
			 Job Applicant or Worker that it places, refers, or assigns, and that charges an
			 Applicant Fee to the Job Applicant or Worker, is required to disclose in
			 writing to the Applicant, or Worker, the amount of the Client Fee paid by the
			 Employer or Client to the Employment Agency for placing the Job Applicant or
			 Worker.
(4)
Applicant
			 Fee Restrictions
. In accordance with M.G.L. c. 140, § 46L, an
			 Employment Agency may charge Applicant Fees only if each of the following
			 conditions are met:
(a) The Employment Agency
			 is not also a "Staffing Agency" as defined in
			 454 CMR 24.02:
Staffing Agency
.
(b) The Applicant Fees must be enumerated in
			 a written contract between the Job Applicant or Worker and the Employment
			 Agency.
(c) The Employment Agency
			 has referred the Job Applicant or Worker to a job in which the Job Applicant or
			 Worker has been hired.
(d) No
			 Applicant Fee may be charged by an Employment Agency to register Job Applicants
			 or Workers.
(e) Applicant Fee
			 amounts must be based on the wage or salary at which the Job Applicant or
			 Worker is hired, as further illustrated by 454 CMR 24.09(4)(i):
Chart
			 A
.
(f) No Job Applicant or
			 Worker shall be required to pay any Applicant Fee in fewer than four equal
			 installments, each of which shall be payable at the end of the first four pay
			 periods following the Employment or within a period of eight weeks, whichever
			 is shorter.
(g) All Applicant Fees
			 are subject to M.G.L. c. 151, § 1, and
			 455 CMR
			 2.00:
Minimum Wage
. In addition, no
			 Applicant Fee shall be charged that would result in the Job Applicant or
			 Worker's average hourly wages for that period to fall below the rates
			 established by any applicable federal law or by M.G.L. c. 151, § 1, or by
			 any applicable collective bargaining agreement.
(h) In no case may an Applicant Fee be
			 charged for a Temporary Employment, Engagement, work assignment, or job that
			 exceeds the Applicant Fee charged for permanent employment.
(i) The total Applicant Fees charged may not
			 exceed the following schedule:
CHART A
TYPE OF WORK
MAXIMUM APPLICANT FEE
M.G.L.
Any Domestic Employee agreement for an assignment
							 shorter than one month in duration
* If no meals or lodging are provided: 10% of salary
							 or wages actually received
* If one meal per working day is provided: 12% of
							 salary or wages actually received
* If two meals per working day are provided: 14% of
							 salary or wages actually received
* If three meals and lodging per working day are
							 provided: 18% of salary or wages actually received
c. 140, § 46L(C)(1)(b)
Any Temporary Employment shorter than ten weeks in
							 duration
Total fee may not exceed 10% of the wages or salary
							 actually received
c. 140, § 46L(C)(2)
Any employment agreement for an assignment shorter
							 than four months in duration
Fees shall not exceed in percentage the first full
							 month's salary or wages of the following:
* less than $225, not to exceed 12.5%
* at least $225 but less than $270, not to exceed
							 17.5%
* at least $270 but less than $300, not to exceed
							 20%
* at least $300 but less than $330, not to exceed
							 22.5%
* at least $330 but less than $365, not to exceed
							 25%
* at least $365 but less than $400, not to exceed
							 27.5%
* at least $400, not to exceed 30%
OR
* 10% of wages actually received, whichever is
							 less
c. 140, § 46L(C)(4)(c)
Model Employment/Assignments/Engagements
Total fee may not exceed 10% of the wages or salary
							 actually received by the model for Employment/ Assignment/Engagement
c. 140, § 46L(C)(3)
Permanent domestic (household) employment, permanent
							 employment of unskilled or untrained workers for manual work/ laborers, or
							 permanent employment in agricultural work
* If no meals or lodging are provided: 10% of first
							 full month's salary or wages
* If one meal per working day is provided: 12% of
							 first full month's salary or wages
* If two meals per working day are provided: 14% of
							 first full month's salary or wages
* If three meals and lodging per working day are
							 provided: 18% of first full month's salary or wages
c. 140, § 46L(C)(1)
Permanent domestic employment by workers from outside
							 MA but within the U.S., having been placed in a job by an employment agency
							 using the services of an emigrant agent
If three meals per day and lodging are provided: not
							 more than $80
c. 140, § 46L(C)(1)(a)
Permanent non-professional trained or skilled
							 industrial workers or mechanics
Total fee may not exceed one week's wages
c. 140, § 46L(C)(2)
All other permanent employment
Fees shall not exceed in percentage of the first full
							 month's salary or wages the following:
less than $225, not to exceed 25%
* at least $225 but less than $270, not to exceed
							 35%
* at least $270 but less than $300, not to exceed
							 40%
* at least $300 but less than $330, not to exceed
							 45%
* at least $330 but less than $365, not to exceed
							 50%
* at least $365 but less than $400, not to exceed
							 55%
* at least $400, not to exceed 60%
c. 140, § 46L(C)(4)(a)
Permanent employment paid on a straight commission
							 basis
Total fee to be based on the percentages prescribed
							 above, equivalent to one twelfth of the computed first year earnings as
							 estimated by the employer
c. 140, § 46L(C)(4)(b)