HOUSE BILL REPORT

HB 2457

BYRepresentatives Wolfe, Jones, R. King, Silver, Padden, Walker, Leonard, Tate, Cole, D. Sommers, Moyer and Winsley

Regulating employment listing or employment information services.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Smith, Ranking Republican Member; Forner, Jones, R. King, Leonard, Prentice and Wolfe.

House Staff:Jim Kelley (786-7166)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 2, 1990

BACKGROUND:

Washington statutory law regulates the business of employment agencies.  The law requires that employment agencies comply with regulations regarding:  recordkeeping; the form of contracts; licensing; bonding; fee amounts and time of collection; and other rules of conduct.

"Employment agency" is defined as any business in which any part of the business income is derived from a fee received from the applicants, and in which any of the following activities are engaged in:  1) The offering, promising, procuring, or attempting to procure employment for applicants; or 2) The giving of information regarding where and from whom employment may be obtained.  In addition "employment agency", with some specific exceptions, includes any person, bureau, organization, or school which for profit and as one of its main objectives or purposes, offers to procure employment for any person who pays for its services, where the main object of the person paying is to secure employment.  The definition of "employment agency" does not specifically include employment listing or employment referral services.

A person performing the services of an employment agency without a license may not bring a cause of action seeking relief for services rendered.  Further, a person who pays a fee to an unlicensed employment agency for the performance of employment services has a cause of action against the employment agency and may recover treble damages plus reasonable attorney's fees and costs.

SUMMARY:

SUBSTITUTE BILL:  The definition of "employment agency" includes employment listing or employment referral services.  It also includes any business that provides resumes to an individual and also provides that person with a list of names to whom the resumes may be sent, or provides that person with preaddressed envelopes.

A person performing the services of an employment agency without holding a valid license must cease operations or immediately obtain a valid license.  If the person continues to operate without a license, the director or the attorney general has a cause of action for treble damages.

SUBSTITUTE BILL COMPARED TO ORIGINAL: The substitute bill changes language in the bill from "employment information service" to "employment referral service."  The substitute includes within the definition of "employment agency" those who provide a resume to an individual and provide with it a list of names or preaddressed envelopes.  The original bill covers only those who sell resumes with a list of names or preaddressed envelopes.  Within the definition of resume, the substitute bill includes a resume not specifically prepared at the request of the applicant.  The original bill included only those prepared at the request of the applicant.

The substitute bill eliminates the provision which would allow an employment agency to operate without a license for 30 days after a demand by the director or the attorney general.  Surplus language is eliminated.

Fiscal Note:      Requested January 27, 1990.

House Committee ‑ Testified For:    Cynthia Jones, Department of Licensing.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This will help the department regulate these companies.  Many employment listing and referral services do not believe that they are covered by the current law.

House Committee - Testimony Against:      None.