HOUSE BILL REPORT

HB 1855

BYRepresentatives Doty, Heavey, Patrick, Rasmussen, Walker, Wang, Brough, Cole, Ballard, Day, May, Leonard, Miller, Fuhrman, Hankins, Butterfield, Nealey, Silver, D. Sommers, Brooks, Moyer, Ferguson and Amondson

Regulating employment in house-to-house sales.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (10)

      Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisher, Jones, R. King, O'Brien, Patrick, Sanders, Sayan and Walker.

House Staff:Karen Haynes (786-7779)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 1, 1988

BACKGROUND:

The U.S. Senate Subcommittee on Investigations held hearings during 1987 on the employment of youth in house-to-house sales. Testimony indicated that this is a national concern with approximately 15,000 youths involved in house-to-house sales for 200 networking companies across the nation.  Typically these companies recruit through advertisements placed in local newspapers.

Outside salespeople are exempted from some labor standard protections, such as minimum wage laws.  House-to-house salespeople generally fall within the definition of outside salespeople.  California and Oregon are among the states that regulate the employment of youth in house-to-house sales.

SUMMARY:

SUBSTITUTE BILL:  No person under 16 years of age may be employed in house-to- house sales.

Persons 16 or 17 years of age may be employed in house-to-house sales if the employer obtains and maintains a validated registration certificate from the Department of Labor and Industries, provides the employee with a picture identification card to be shown to all customers, ensures supervision during all working hours, obtains written parental consent to transport the employee to another state, and does not permit the employee to engage in house-to-house sales after 9 p.m.

Employment with a parent or voluntary activities for educational, charitable, religious or governmental entities are excluded from the definition of employment.

Any person advertising to employ a person under the age of 21 in house-to-house sales must also be registered with the Department of Labor and Industries.  The advertisements must include the person's registration number, the specific nature of the employment and product or services to be sold, and the average monthly compensation paid to new employees.  The advertisement may not be false, misleading, or deceptive.

Any employer employing any person under prohibited work standards or conditions shall be guilty of a misdemeanor, and be subject to a fine of at least $125, but not exceeding $5,000, for each violation.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The registration requirement for advertising is clarified by removing the reference to recruitment of employees.  The requirement is further clarified to apply only when the advertisement specifically prescribes a minimum age less than twenty-one.

The definition of employ is amended to exclude services performed by a person in the employ of his or her parent.

Fiscal Note:      Requested January 25, 1988.

House Committee ‑ Testified For:    Representative Shirley Doty, Prime Sponsor; Barbara McKnight Rilea; Paul Conrad, Allied Daily Newspapers (with concerns); Dan Hainline, Department of Labor and Industries.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Young people are recruited through newspaper advertisements for house-to-house sales.  The advertisements emphasize travel and making lots of money.  The employers force the young people to work long hours for about $10 per day.  The employers move their crews frequently and at night to avoid trouble with law enforcement agencies.  Many of their current activities violate the law.

House Committee - Testimony Against:      None Presented.