CHAPTER 1. REGULATION OF EMPLOYMENT SERVICES
IC 25-16
ARTICLE 16. EMPLOYMENT SERVICES
IC 25-16-1
Chapter 1. Regulation of Employment Services
IC 25-16-1-1
Necessity of license; issuance; display
Sec. 1. A person, firm, limited liability company, or corporation
may not open, operate, or maintain an employment agency in this
state without first obtaining a license for that purpose from the
department. Each license shall contain a designation of the city or
town, together with the name of the street and the number of the
building where the licensed person, firm, limited liability company,
or corporation conducts or is to conduct the employment agency. The
license, together with a copy of this law, shall be posted in a
conspicuous place in each and every place or office where the agency
does business. No agency shall write, print, publish, paint, or display
in any way any sign, card, or advertisement in any way similar to the
name "Indiana Free Employment Service". All advertisements and
statements, window signs, door signs, and all literature used,
displayed or circulated by any such agency shall contain the regularly
licensed name of the agency. The location of an agency may not be
changed without the written consent of the department of state
revenue. A license issued under this chapter is not transferable.
(Formerly: Acts 1927, c.25, s.1.) As amended by Acts 1982, P.L.154,
SEC.57; P.L.35-1983, SEC.2; P.L.8-1993, SEC.382.
IC 25-16-1-2
Bond; revocation of license
Sec. 2. (a) The department of state revenue shall require each and
every applicant for a license to execute to the state of Indiana a bond
in the penal sum of one thousand dollars ($1,000), with a surety
company, or with two (2) solvent resident freeholders, conditioned
that the obligor will not violate any of the duties, terms, conditions,
or provisions of this chapter, and the bond so executed, shall be
approved by the department.
(b) The department is hereby authorized to cause an action to be
brought on such bond, in the name of the state of Indiana, for any
violation of any of the conditions of such bond, and may, after a
hearing, revoke such license, whenever, in its judgment, the licensee
has violated any of the provisions of this chapter, or has been
convicted of the violation of any criminal law of this or any other
state, subject to an appeal under IC 4-21.5 by the person, firm,
limited liability company, or corporation whose license is so
revoked.
(c) It is hereby made the duty of the attorney general to prosecute
any action brought by the department of state revenue in such cases.
(Formerly: Acts 1927, c.25, s.2.) As amended by Acts 1982, P.L.154,
SEC.58; P.L.35-1983, SEC.3; P.L.7-1987, SEC.121; P.L.8-1993,
SEC.383.
IC 25-16-1-3
License fee
Sec. 3. A fee of one hundred fifty dollars ($150) shall be paid
annually for each license granted under the provisions of this
chapter.
(Formerly: Acts 1927, c.25, s.3.) As amended by Acts 1981, P.L.223,
SEC.2.
IC 25-16-1-4
Duration of license; renewal; notice of refusal to renew
Sec. 4. Every license, unless previously revoked, shall remain in
force until one (1) year after its issue, and every employment agency
shall, upon payment of the amount of the license fee required, and
the filing of a new bond, have issued to it a license for the ensuing
year, unless the department of state revenue then gives written notice
to the agency:
(1) that it intends to refuse to renew the license for reasons
stated in this chapter; and
(2) that the license will remain in effect pending an appeal, if
any, under IC 4-21.5.
(Formerly: Acts 1927, c.25, s.4.) As amended by P.L.35-1983,
SEC.4; P.L.7-1987, SEC.122.
IC 25-16-1-5
Application for license
Sec. 5. Every applicant for a license shall file with the department
of state revenue a written application, stating the name and address
of the applicant, the name of the street and the number of the
building in which the employment agency is to be maintained, the
name of the person who is to have the general management of the
office, the name under which the business of the office is to be
carried on, and the business or occupation engaged in by the
applicant for at least five (5) years immediately preceding the date of
the application. Such applicant shall give as reference the names and
addresses of at least three (3) persons of reputed business or
professional integrity, located in the city or town where such
applicant intends to conduct his business. The applicant shall be
rejected if the department of state revenue finds that the applicant is
not of good moral or business integrity, or when the premises for
conducting the business of an employment agent are found upon
investigation to be unfit for such use, or if there is any good and
sufficient reason within the meaning and purpose of this chapter for
rejecting such application. No license will be granted to any person
whose license has been revoked within a period of three (3) years
next preceding the date of such application. Each application shall be
granted or refused within thirty (30) days from date of filing.
(Formerly: Acts 1927, c.25, s.5.) As amended by Acts 1982, P.L.154,
SEC.59.
IC 25-16-1-6
Filing fee schedule, forms, and contracts; changes
Sec. 6. (a) Each applicant for a license shall file with his
application, a schedule of fees, charges, and commissions which he
expects to charge and collect for his service, together with a copy of
all forms and contracts to be used in the operation of the agency.
(b) Such schedule of fees, charges, and commissions may
thereafter be changed by filing an amended or supplemental schedule
showing such fees, charges, and commissions with the department of
state revenue at least thirty (30) days before the date provided for
same to become effective. Any change in forms and contracts must
also be filed with the department of state revenue at least thirty (30)
days before the date provided for same to become effective.
(c) Schedule of fees, charges, and commissions to be charged
shall be posted in a conspicuous place in the office of such agency.
It shall be unlawful for any employment agent to charge, demand,
collect, or receive a greater compensation for any service performed
by him than is specified in such schedule filed with the department
of state revenue.
(Formerly: Acts 1927, c.25, s.6.) As amended by P.L.28-1988,
SEC.74.
IC 25-16-1-7
Recovery of fees by job applicant
Sec. 7. No agency shall send out any applicant, or collect any fee
from any applicant without first having obtained a bona fide order for
such employment. No charge nor advance fee of any kind shall be
accepted until a position has been secured for the applicant by the
agency or through the efforts of the agency. If any person fails,
through no fault of his own, to obtain employment from the employer
to whom he has been referred by an employment agent, or if, after
having been engaged by an employer, such person is not permitted
by said employer to enter upon the employment he was sent to
perform, the whole amount paid by such person to the employment
agent as a fee shall be refunded to him on demand. If such applicant
shall have obtained a position or employment through such licensed
agency, and shall voluntarily leave or abandon such position or
employment, and without reasonable cause, he shall be entitled to
receive no part of the fee paid by the applicant to the agency.
(Formerly: Acts 1927, c.25, s.7.)
IC 25-16-1-8
Receipts for payments made by job applicants; contents
Sec. 8. (a) For all payments made by any applicant for
employment to any employment agency, there shall be given a
receipt, on the back of which shall be printed in readable form in the
English language: "No charge nor advance fee of any kind shall be
accepted until a position has been secured for the applicant by the
agency or through the efforts of the agency. In case any employer
fails to accept an applicant or person obtained by any agency acting
as the agent of such employer, then the licensed agency shall repay
and return to said applicant all of any payments made by said
applicant to said agency.".
(b) On the front of such receipt there shall be printed the words,
"Read the law on the back of the receipt.". All receipts shall also
have printed on the back thereof: "This agency is licensed by the
department of state revenue, State Capitol, Indianapolis, Indiana.".
(Formerly: Acts 1927, c.25, s.8.) As amended by P.L.28-1988,
SEC.75.
IC 25-16-1-9
Employment agency records; maintenance; inspection
Sec. 9. (a) Every licensed agency shall keep a record for two (2)
years of:
(1) every person referred or placed for employment, including
the date the person was referred or placed in employment, the
person's name, address, age, nativity, sex, color, and trade,
occupation, or profession;
(2) the amount of the fee received and rate of wages agreed
upon; and
(3) the name and address of the person, firm, limited liability
company, or corporation with whom any of the applicants have
been placed.
(b) The department of revenue may inspect the records of an
agency at any time.
(Formerly: Acts 1927, c.25, s.9.) As amended by P.L.35-1983,
SEC.5; P.L.8-1993, SEC.384.
IC 25-16-1-10
Disposition of fees received
Sec. 10. All fees received by the department of state revenue
under this chapter shall be paid into the state treasury by the
department.
(Formerly: Acts 1927, c.25, s.10.) As amended by Acts 1979, P.L.17,
SEC.45; P.L.28-1988, SEC.76.
IC 25-16-1-11
Employment agency defined; exceptions
Sec. 11. (a) The term "employment agency", as used in this
chapter, means any person, firm, limited liability company, or
corporation, who for hire or with a view to profit, shall undertake or
offer to secure employment or help through the medium of card,
circular, pamphlet, or any medium whatsoever, or through the
display of a sign or bulletin, offer to secure employment or help, or
give information as to where employment or help may be secured.
(b) Nothing in this chapter shall apply to the business and
vocation of babysitting.
(c) Nothing in this chapter shall apply to charitable and
benevolent organizations and associations approved by the division
of family resources. All charitable and benevolent organizations and
associations approved by the division of family resources shall,
before being authorized to conduct such employment agency or
department, secure a permit from the department of state revenue by
filing an application giving such information as may be required. No
charge shall be made for the issuance of such permit, which may be
revoked on the same terms as a license is revocable.
(Formerly: Acts 1927, c.25, s.11; Acts 1951, c.292, s.1.) As amended
by P.L.28-1988, SEC.77; P.L.2-1992, SEC.774; P.L.8-1993,
SEC.385; P.L.145-2006, SEC.160.
IC 25-16-1-12
Referring job applicant to place where strike or lockout exists
Sec. 12. No employment agency shall refer any applicant to any
place for a position where a strike or lockout is known to exist
without notifying the applicant of such condition.
(Formerly: Acts 1927, c.25, s.12.)
IC 25-16-1-13
Fee splitting with employer
Sec. 13. No person conducting or connected with or acting as
agent for an employment agency shall make any arrangements with
any employer or his agents or employees to secure the discharge of
any employee; nor shall any employment agent or any one in his
employ or representing him divide or offer to divide or share, directly
or indirectly, any fee, charge or compensation received from any
employee with any employer or person in any way connected with
the business thereof.
(Formerly: Acts 1927, c.25, s.13.)
IC 25-16-1-14
Sending job applicant to house of ill fame or assignation; securing
discharge of employee
Sec. 14. It shall be unlawful for any employment agency to send
any person to any place of bad repute, house of ill fame or
assignation, or place of amusement kept for immoral purposes, or
any other place (known) to be of questionable character or ill repute,
or for the purpose of securing a position for any applicants therein.
It shall be unlawful for any employment agency to circulate, publish,
record or issue any report or information to cause the discharge of
any person employed in any legitimate service.
(Formerly: Acts 1927, c.25, s.14.)
IC 25-16-1-15
Refund of fee in event of nonexistence of job opening
Sec. 15. If it shall appear that no employment of the kind applied
for existed at the place where any applicant was directed, said
licensed agency shall refund to such applicant, within five (5) days
after demand, any sum paid by said applicant for transportation and
other expense in going to and returning from said place and all fees
paid by said applicant to such agency.
(Formerly: Acts 1927, c.25, s.15.)
IC 25-16-1-16
False representations
Sec. 16. No agency shall publish, or cause to be published, or
circulate any false or fraudulent or misleading notice, advertisement,
or statement; or give any false information or make any false
representation or promise concerning work or employment or help,
to any one who shall register for help or employment, and no such
agency shall make any false entry in any book, record or register kept
by it in connection with its business.
(Formerly: Acts 1927, c.25, s.16.)
IC 25-16-1-17
Inspection; power of arrest
Sec. 17. For the purpose of enforcing this chapter and the rules
and regulations issued thereunder, the department of state revenue,
or any of its duly authorized agents, may enter any employment
agency or place of business of any employment agent and inspect the
register, books, cards or other records of such employment agent.
The department or any of its duly authorized agents, shall have the
power and authority of sheriffs, and other peace officers, to make
arrests for violations of the provisions of this chapter and to serve
any process or notice throughout the state.
(Formerly: Acts 1927, c.25, s.17.) As amended by Acts 1982,
P.L.154, SEC.60.
IC 25-16-1-18
Violations; enforcement of chapter
Sec. 18. A person who violates this chapter commits a Class B
misdemeanor. The Indiana department of state revenue shall enforce
this chapter and institute criminal or civil proceedings whenever
informed of any violation of it. Upon instituting proceedings, the
name of the department shall be entered upon the docket, and upon
conviction a fee of ten dollars ($10.00) shall be allowed in favor of
the department, which fee, when collected, shall be accounted for as
other money received by the department under this chapter. The
department may promulgate rules and regulations as necessary for
the supervision of employment agencies.
(Formerly: Acts 1927, c.25, s.18.) As amended by Acts 1978, P.L.2,
SEC.2533.