SF 1404

1st 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; amending Minnesota Statutes
2004, section 184.22, by adding subdivisions.

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