2002 Minnesota Statutes

     184.22 Licenses required. 

    Subdivision 1.    Individuals; separate locations.  No 
 person shall engage in the business of or act as an employment 
 agent or counselor unless a license from the department is first 
 obtained.  Each separate location for the business of an 
 employment agency or for employment counseling shall have a 
 separate agency license and a licensed manager who shall have 
 immediate control of only one location.  

    Subd. 2.    Exemptions.  Except as otherwise 
 specifically provided, the provisions of sections 184.21 to 
 184.41 do not apply to any person, firm, corporation, 
 partnership, or association engaged in the business of a 
 management consultant, management search consultant or personnel 
 consulting firm (hereafter "search firm") if:  (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 be filled; (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; (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 (4) the search firm does not carry on any 
 other activity that comes within the definition of employment 
 agency as hereinbefore defined.  Each search firm shall file 
 annually with the commissioner a sworn statement indicating 
 whether or not it has conducted its business during the past 
 year in a manner consistent with the above provisions, exempting 
 search firms from regulation as employment agencies.  The 
 statement must include, in addition to other information the 
 commissioner by rule requires, a representation as to whether 
 the search firm has placed any advertisements in the "help 
 wanted" columns of newspapers published in Minnesota.  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 above four conditions, 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 were not met, the search firm shall 
 thereafter be considered an employment agency and be subject to 
 the provisions of 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 in which it is registered with the 
 commission as a licensed employment agency; provided, that no 
 registered search firm may offer licensed employment agency 
 services at the same location. 

    Subd. 3.    Registration.  Before starting business in 
 this state, any firm established as an exempt firm under 
 subdivision 2 shall (1) file a sworn statement with the 
 commissioner indicating whether or not it will conduct its 
 business in a manner consistent with the provisions of 
 subdivision 2 and other information the commissioner by rule 
 requires, (2) pay the registration fee required by section 
 184.29, and (3) furnish the bond required by section 184.30.  A 
 search firm registration may not be transferred to another 
 search firm, unless written notice of the transfer is given to 
 the commissioner.  

    Subd. 4.    Continued exemption.  A search firm exempted 
 under subdivision 2 prior to August 1, 1983 is not subject to 
 the provisions of section 184.29, 184.30, 184.37, or 184.38.  

    Subd. 5.    Fee payment prohibited.  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.  

    HIST: 1967 c 884 s 2; Ex1967 c 1 s 6; 1971 c 95 s 1; 1974 c 
 423 s 3; 1979 c 5 s 1; 1982 c 424 s 130; 1983 c 375 s 1-4; 1986 
 c 444 

*   NOTE:  Subdivisions 2, 3, 4, and 5 are repealed by Laws 
*2001, First Special Session chapter 4, article 2, section 41, 
*paragraph (b), effective July 1, 2003.