An act relating to employment agencies. Be it enacted by the General Assembly of the Commonwealth of Kentucky




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UNOFFICIAL COPY AS OF 04/14/16 00 REG. SESS. 00 RS BR 1845

AN ACT relating to employment agencies.

Be it enacted by the General Assembly of the Commonwealth of Kentucky:

Section 1. KRS 340.053 is amended to read as follows:

(1) An employment agency shall not charge or accept a fee from an applicant except after such agency has been responsible for referring such job applicant to an employer and where as a result such job applicant has been employed by such employer and the job applicant and employer have mutually agreed upon both the salary or wages to be paid the job applicant and the date the employment is to commence. A temporary employment agency that accepts a fee from an applicant, that has been employed as provided in this subsection in a temporary position or a position that is less than full-time, is deemed to agree to reasonably assist the applicant, upon request of the applicant, in obtaining health insurance coverage from the employer or in the individual market.

(2) As used in this section:

(a) "Temporary employment agency" means any person or organization that offers or agrees to furnish or assist in furnishing employment, engagements for help, information, or service concerning or purporting to effect employment for temporary or less than full-time positions. All entities exempted in KRS 304.010(3) from the definition of "employment agency" shall also be exempt from this definition;

(b) "Temporary position" means a position that is created for a definite period of time; and

(c) "Full time position" means a position that is at least forty (40) hours per week.

(3) If a job applicant accepts employment and thereafter such employment is terminated without fault of the employee within thirty (30) calendar days of the starting date of employment, the gross fee charged to such employee shall not exceed twenty percent (20%) of the gross earnings of such employee for the period employed. An excess collected above the fee shall be returned immediately after the employment agency has been notified that such employment has been terminated and the employment agency has had a reasonable opportunity to ascertain the reasons therefor.

(4)[(3)] No employment agency shall accept an advance or deposit from an applicant prior to the applicant's acceptance of a position of employment.

(5)[(4)] An employment agency shall not charge a fee for the registering of a job applicant for employment nor for referring a job applicant to a position of employment with the same employment agency with which the job applicant has filed an application seeking the services of the employment agency.

(6)[(5)] An employment agency shall not induce a job applicant to terminate his employment in order to be available to be interviewed by prospective employers.

(7)[(6)] No employment agency shall require applicants to subscribe to any publication or incidental service or contribute to the cost of advertising.

(8)[(7)] No employment agency shall make or cause to be made or use any name, sign, or advertising device bearing a name which may be similar to, or reasonably confused with the name of a governmental agency.

(9)[(8)] An employment agency may not require a job applicant to borrow money from a specific finance company in order to pay the employment agency's fee; but this shall not prevent an employment agency from advising a job applicant of the names of financial institutions from which funds may be available for this purpose.

(10)[(9)] No employment agency shall place an advertisement for any position of employment without such position actually being in existence at the time of placing the advertisement, or without giving the name of the agency with the advertisement.

(11)[(10)] An employment agency shall not knowingly send or cause to be sent any person to any employer where the employment agency knows, or reasonably should have known, that the prospective employment is or would be in violation of state or federal laws.

(12)[(11)] When an employment agency knows that a prospective employment is for a specified limited period of time it shall notify any job applicant thereof referred to prospective employment at the time of referral.

Section 2. KRS 340.170 is amended to read as follows:

(1) There is hereby created a Kentucky Employment Advisory Council appointed by the secretary to be composed of seven (7) members and the secretary or his designee as an ex officio member of the council. Of the appointive members, three (3) shall have, for at least two (2) years, at the time of appointment, occupied executive or managerial positions in the private employment agency industry in this state and four (4) shall have occupied positions with employment responsibility in commerce or industry in this state for at least three (3) years at the time of appointment.

(2) Each member of the council shall hold office until the appointment and qualification of his successor. The terms of the initial members of the council shall expire as follows: two (2) members, January 1, 1977, two (2) members, January 1, 1978, three (3) members, January 1, 1979. Subsequent appointment shall be made for a term of three (3) years. Vacancies occurring in the membership of the council for any cause shall be filled by appointment of the secretary for the balance of the unexpired term. The secretary may remove any member of the council for misconduct, incompetency, neglect of duty, or other reasonable cause.

(3) The council shall meet at least twice each year. All meetings of the council shall be open and public and all records of the council shall be open to inspection except as otherwise prescribed by law. Four (4) members shall constitute a quorum for the transaction of business. The council shall elect from its members, each for a term of one (1) year, a chairman, vice chairman, and secretary of the council, and may appoint such committees as it deems necessary to carry out its duties.

(4) Each member of the council shall serve without compensation, but shall be entitled to reimbursement for their actual and necessary expenses in attending meetings of the council.

(5) The council shall:

(a) Consider all matters relating to employment agencies in the state, including, but not limited to, applicants for licenses and complaints against agencies.

(b) Advise the secretary in regard to how employment agencies may best serve the state, the public, and the employment agency industry.

(c) Collect information and data as the secretary may deem necessary for the proper administration of this chapter.

(d) Submit findings and make recommendations as the council may deem necessary to the secretary.

(e) Advise the secretary in regard to how employment agencies may best assist applicants in obtaining health insurance coverage as required by subsection (1) of Section 1 of this Act.


Page of

BR184500.100-1845




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