SENATE BILL REPORT

SHB 1855

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives 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

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 24, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; Conner, McMullen, Smitherman, Warnke, Williams.

Senate Staff:Steve Boruchowitz (786-7429)

                  February 24, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 24, 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:

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.  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 must not be false, misleading, or deceptive.

Any employer violating this act shall be guilty of a misdemeanor, and be subject to a fine of at least $125, but not exceeding $5,000, for each violation.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The department is allowed to adopt rules to provide variances for specific types of employment.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Representative Doty, Prime Sponsor; David Duncan, 7th Day Adventist Church; Richard Fenn, 7th Day Adventist Church; Dan Bickford, King County Labor Council; Dan Hainline, L&I