§ 23:111 — Regulation; restrictions and prohibitions

Louisiana § 23:111

• Jurisdiction: Louisiana
• Title 23: Labor and Workers' Compensation

Text

§111. Regulation; restrictions and prohibitions
A. The assistant secretary may regulate the reasonableness of the applicant fees
charged in the schedules submitted. He shall give due consideration to the fee levels in effect
in Louisiana and surrounding states. Each employment service shall at all times
conspicuously post at its place of business a copy of its current license, a notice of
availability of rules and regulations, and, if applicable, its currently approved schedule of
applicant fees printed in not less than thirty-point boldface type. No employment service
shall charge, receive, or attempt to collect any applicant fee not included in the posted
schedule. A copy of any amended or supplemental applicant fee schedule shall be posted as
provided herein and shall be filed with the assistant secretary. An amended fee schedule
shall not become effective until approved by the assistant secretary.
B.(1) No employment service shall charge or collect any fee from an applicant except
for:
(a) Employment procured through the efforts of the employment service.
(b) The preparation of job resumes, for which they may charge a maximum fee of
fifty dollars. No employment service shall require the purchase of resume services as a
condition of representation.
(2) No employment service shall charge any fee for the registration of applicants or
candidates for employment or for assistance or job referrals, or require applicants or
candidates to subscribe to any publication or to any photographic, postal card, or letter
service, or to contribute to the cost of advertising.
(3) No employment service shall charge or accept a fee from an applicant or
candidate unless in accordance with the terms of a written contract with the applicant, in a
form approved by the assistant secretary. Each applicant shall be given a copy of every
contract between the employment service and the applicant. Each contract, in addition to
setting forth the employment service's currently filed applicant fee schedule, shall provide:
(a) Where the procured employment is one for which the applicant is to be paid a
salary, the fee charged the applicant will be based on the employment service's schedule of
fees as applied to the projected first year's gross earnings of the applicant.
(b) Where procured employment is one for which the applicant will be paid on a
straight commission basis, or on the basis of a salary plus other remuneration, or a drawing
account or guarantee against commission, the fee charged the applicant shall be based on the
employment service's schedule of applicant fees applied to the first year's gross earning of
the applicant as estimated by the employer. At the conclusion of the first year of
employment and upon proper proof of actual gross earnings of the applicant, said fee shall
be adjusted upward or downward as is appropriate, provided that under no circumstances will
overtime pay be included in gross earnings. Any request for adjustment in fees must be made
in writing by the agency or employee within sixty days after one year of employment or
termination, whichever is sooner.
(c) When procured employment is terminated for any reason whatsoever within
ninety consecutive calendar days following the date employment begins, the fee charged the
applicant shall not exceed twenty percent of the gross earnings of the applicant. Refunds due
hereunder shall be made promptly by the employment service upon proper verification of
earnings with the employer. Such payment shall be made not later than fourteen days from
the date verification in writing is received. The applicant shall be responsible for obtaining
verification of earnings from the employer.
(d) Where an employed applicant accepts employment but fails to report to work on
the new job, the fee charged to such applicant shall not exceed twenty percent of the fee for
permanent employment on the new job, provided the applicant remains with his present
employer.
(e) Other than as provided for in Subparagraph (d) of this Paragraph, an employment
service shall not receive a fee from an applicant who does not commence work on a job
procured by the employment service.
C. An employment service shall not engage in the following conduct:
(1) Solicit, persuade, or induce any employee to leave any employment in which said
service has placed the employee.
(2) Solicit, persuade, or induce any employer to discharge an employee.
(3) Divide, offer to divide, or share directly or indirectly any fee received or to be
received from any applicant or employer with any applicant, any employer, or other person
in any way connected with the employer's business, or any employee of Louisiana Works.
(4) Publish or cause to be published any representation, promise, notice, or
advertisement which the employment service knows or reasonably should have known is
false, fraudulent, or misleading.
(5) Advertise or use letterheads, receipts, or other written or printed matter unless
such materials contain the name of the employment service.
(6) Direct, refer, or send an applicant to an employer for the purpose of employment
without having first obtained prior authorization from the employer.
(7) Send or cause to be sent any applicant to any employer where the employment
service knows, or reasonably should have known, that the prospective employment is or
would be in violation of state or federal laws or that a labor dispute is in progress, without
notifying the applicant of such fact and delivering to him a clearly written statement that a
labor dispute exists at the place of such employment.
(8) Send or cause to be sent any person to any place which the employment service
knows is maintained for immoral or illicit purposes.
(9) Charge an applicant a fee when the employment service represents to the public
that it is exclusively an employer fee paid operation.
(10) Charge an applicant a fee when the employment service procures employment
for an applicant with a public or governmental employer.
(11) Permit an applicant to sign a power of attorney or assignment of wages, the
form of which has not been approved by the office of workforce development. The power
of attorney shall be required to include the following terms and conditions:
(a) Any funds received by the employment service as a result of an applicant signing
a power of attorney or assignment of wages shall be placed in an escrow checking account
to be used exclusively for the receipt and disbursement of applicant's funds. This escrow
account shall be kept separate from all other employment service's accounts. Upon receipt
of an applicant's wages, the employment service shall immediately deposit said funds into
the escrow account. The disbursement of any funds received by the employment service as
a result of an applicant signing a power of attorney or assignment of wages shall be
specifically limited as follows:
(i) The employment service may pay to itself the applicable placement fee plus
legally allowable interest, not to exceed twelve percent per annum, authorized by the power
of attorney.
(ii) The employment service shall distribute any and all of the remaining wages to
the applicant.
(b) Upon receiving applicant's wages, the employment service shall promptly notify
the applicant. The employment service shall deliver to the applicant any funds that the
applicant is entitled to receive pursuant to the power of attorney agreement and, upon written
request by the applicant, shall promptly render a full accounting regarding such funds.
(c) Complete records of such escrow account funds shall be kept by the employment
service and shall be preserved for a period of five years from the termination of the power
of attorney and assignment of wages executed by the applicant.
(12) Permit an applicant to sign a promissory note or negotiable instrument in an
amount exceeding the appropriate fee plus legal interest or evidencing a legal interest in
excess of twelve percent per annum.
D. Nothing contained herein shall authorize or allow the regulation of charges by
employment services to employers.
E. Notwithstanding any other provision of law to the contrary, no employment
service shall be permitted to enter into a written contract with an applicant which allows for
the direct payroll deduction of any applicant fee through a payment schedule exceeding
twenty percent of an applicant's gross wages per pay period. This prohibition shall apply to
all fees charged by the employment service.
F. In addition to the penalties provided for in R.S. 23:108, any person found by the assistant secretary to have violated the provisions of Paragraph (C)(3) of this Section shall
personally be liable for a fine of not less than five hundred dollars or more than fifteen
hundred dollars per violation.

Legislative History

Acts 1981, No. 732, §1; Acts 1986, No. 854, §1; Acts 1992, No. 633, §1, eff. Jan. 1, 1993; Acts 1993, No. 982, §1; Acts 1995, No. 813, §1; Acts 1997, No. 1172, §4, eff. June 30, 1997; Acts 2001, No. 604, §1, eff. June 22, 2001; Acts 2007, No. 113, §3; Acts 2008, No. 220, §8, eff. June 14, 2008; Acts 2008, No. 743, §7, eff. July 1, 2008; Acts 2010, No. 307, §1.