HF 742

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to employment; providing exemptions from
employment agency licensing requirements; prohibiting
certain fee payments; extending a pilot project;
amending Minnesota Statutes 2004, section 184.22, by
adding subdivisions; Laws 2004, chapter 188, section 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 184.22, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Exemptions. new text end

new text begin (a) Except as otherwise provided,
sections 184.21 to 184.41 do not apply to any person, firm,
corporation, partnership, or association engaged in the business
of management consulting, management search consulting, or
personnel consulting, hereafter "search firm," if:
new text end

new text begin (1) the search firm is retained by, acts on behalf of, and
is only compensated by the employer, pursuant to a written or
oral agreement specifying the position to by filled;
new text end

new text begin (2) in no instance will any individual candidate who is
identified, appraised, or recommended by the search firm for
employment become liable in whole or in part to pay a fee of any
kind, directly or indirectly, on account of any service
performed by the search firm;
new text end

new text begin (3) in no instance does the search firm or its agents
solicit, persuade, or induce any individual to terminate
employment with an employer with whom the search firm has placed
that individual; and
new text end

new text begin (4) the search firm does not carry on any other activity
that comes within the definition of employment agency as defined
in section 184.21, subdivision 2.
new text end

new text begin (b) If the commissioner at any time has reason to believe
that the search firm has not conducted its business in a manner
consistent with the conditions in paragraph (a), clauses (1) to
(4), the commissioner may inspect the relevant records of the
search firm for the purpose of confirming whether the search
firm has maintained its exempt status during the year. If it is
determined, either by written admission by the search firm or by
a finding of fact in a court of law or by a hearing officer
pursuant to chapter 14, that any of the four conditions in
paragraph (a) were not met, the search firm shall be considered
an employment agency and be subject to sections 184.21 to
184.41. If an employment agency offers services which are the
same or similar to those offered by a search firm, or if a
search firm offers services which are the same or similar to
those offered by an employment agency, the person or entity
offering these combined employment agency and search firm
services shall identify itself to the public by displaying the
name filed with the commissioner as a licensed employment
agency; provided, that no search firm may offer licensed
employment agency services at the same location.
new text end

Sec. 2.

Minnesota Statutes 2004, section 184.22, is
amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Fee payment prohibited. new text end

new text begin No employer may require
any job candidate placed with the employer by a search firm to
pay, directly or indirectly, all or part of the search firm's
fee.
new text end

Sec. 3.

Laws 2004, chapter 188, section 1, is amended to
read:

Section 1.

Pilot project.

The commissioner of employment and economic development
shall conduct an extended employment pilot project to study an
industrial model for employment for individuals with severe
disabilities in Thief River Falls, Minnesota.

Employment is to be provided by Custom Products, a division
of Occupational Development Center. During the pilot,
employment outcomes for individuals with severe disabilities
will be assumed to be community employment as defined under
Minnesota Rules, part 3300.2005. The pilot project will begin
July 1, 2004, and end June 30, deleted text begin 2005 deleted text end new text begin 2006 new text end . Evaluation of the
pilot project must be completed by October 1, deleted text begin 2005 deleted text end new text begin 2006 new text end , by the
commissioner.

The pilot project must maintain a minimum ratio of 60
percent of nondisabled persons, must pay minimum wages or better
to all employees with severe disabilities, and must provide them
a level of benefits equal to those provided to nondisabled
employees. All work teams must be integrated.

The pilot project must provide the extended employment
program with useful information to clarify the distinction
between center-based and community employment subprograms. The
commissioner shall consider the findings of the pilot project in
adopting rules.