Employment Agency Laws

Employment agencies are businesses that connect job seekers looking for full-time, part-time or temporary work with companies that need such workers. These agencies are governed by state laws, which vary from state to state.

State Laws

Many states require employment agencies to be licensed or registered. All states require that employment agencies at the very least hold a business license and abide by all laws and codes applicable to businesses in that state.

Protection for Workers

Most laws regarding employment agencies are created to protect job seekers from unethical practices and harmful effects. Laws are in place that forbid employment agencies from placing ads for nonexistent jobs to attract job seekers to their talent pool. Deceptive advertising, or ads that willfully misrepresent a job, are also outlawed. In addition, many states require that agencies disclose that they are an employment agency in any advertising listing a specific position.

Fees

Although most employment agencies collect a placement fee from the companies that they place job candidates in, some agencies charge job seekers a fee. In some states, such as New York, there is a maximum amount the employment agency can charge the job seeker.

References

• Better Business Bureau: Employment Services
• MA Labor and Workforce Development: Employment Agency Law Brochure
• New York State Department of Labor: Duties of Employment Agencies