34-13 Licensing Employment Agents and Agencies
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<![CDATA[CHAPTER 34-13LICENSING EMPLOYMENT AGENTS AND AGENCIES34-13-01. Definitions. As used in this chapter, unless the context or subject matterotherwise requires:1."Commissioner" means the labor commissioner.2."Employee" means any person, whether employed or unemployed, seeking or<br>entering into any arrangement for employment or change of employment through<br>the medium of service of an employment agent.3."Employer" means any person, firm, corporation, limited liability company, or<br>association employing or seeking to enter into an arrangement to employ any<br>person through the medium or service of an employment agent.4."Employment agent" or "employment agency" means any person, firm, corporation,<br>limited liability company, or association in this state engaged for hire or<br>compensation in the business of furnishing:a.Persons seeking employment or changing employment, with information or<br>other service enabling or tending to enable such persons to procure<br>employment, by or with employers, other than such employment agent; orb.Any other person, firm, corporation, limited liability company, or association<br>who may be seeking to employ or may be in the market for help of any kind,<br>with information enabling or tending to enable such other person, firm,<br>corporation, limited liability company, or association to procure such help.The term "employment agent" or "employment agency" does not include any<br>person, firm, corporation, limited liability company, or association employing<br>individuals to render part-time or temporary services to or for a third person, if the<br>person, firm, corporation, limited liability company, or association employing the<br>individuals, in addition to wages or salaries, pays social security and unemployment<br>insurance taxes, provides workforce safety and insurance coverage, and is<br>responsible for the acts of the employees while rendering services to or for a third<br>person. The term "employment agent" or "employment agency" does not include a<br>person, firm, corporation, limited liability company, or association charging service<br>fees or any other charges exclusively to employers.5."Gross misconduct" means misconduct involving assault and battery, the malicious<br>destruction of property, or the theft of money or property.34-13-02.License required - Penalty.A person may not open or carry on anemployment agency if that person has a physical presence or location within the state, unless<br>that person first procures a license from the commissioner. A person opening or conducting any<br>such agency without first procuring a license is guilty of a class B misdemeanor.34-13-03.License application - Schedule of fees - License issuance andrevocation. Annually, every applicant for a license shall file with the commissioner a written<br>application stating the name and address of the applicant, the street and number of the building<br>in which the employment agency is to be maintained, the name of the person who is to have the<br>general management of the office, the name under which the business of the office is to be<br>carried on, whether or not the applicant is pecuniarily interested in any other business of a like<br>nature, and if so, where. Such application must also state whether the applicant is the only<br>person pecuniarily interested in the business to be carried on under the license and must be<br>signed by the applicant and sworn to before a notary public. If the applicant is a corporation, the<br>application must state the names and addresses of the officers and directors of the corporationPage No. 1and must be signed and sworn to by the president and treasurer thereof. If the applicant is a<br>limited liability company, the application must state the names and addresses of the managers<br>and governors of the limited liability company and must be signed and sworn to by the president<br>and treasurer thereof. If the applicant is a partnership, the application must also state the names<br>and addresses of all partners therein and must be signed and sworn to by the managing partner<br>or partners. The application must also state whether or not the applicant is, at the time of making<br>application, or has at any previous time been, engaged or interested in, or employed by anyone<br>engaged in, the business of conducting an employment agency, either in this state or any other,<br>and if so, when and where.The application must also give as reference the names andaddresses of at least three persons of reputed business or professional integrity, located within<br>the state. Every applicant for a license to engage in the business of an employment agent shall,<br>at the time of making application for said license, file with the commissioner a schedule of the<br>fees or charges to be collected by such employment agent for any services rendered, together<br>with all rules and regulations that may in any way affect the fees charged or to be charged for<br>any service. Such fees and such rules or regulations may thereafter be changed by filing an<br>amended or supplemental schedule showing such charges, with the commissioner. It is unlawful<br>for any employment agent to charge, demand, collect, or receive a greater compensation for any<br>service performed by the agent than is specified in such schedule filed with the commissioner.The commissioner may issue a license to an employment agent and refuse to issue alicense if, after due investigation, the commissioner finds that the character of the applicant<br>makes the applicant unfit to be an employment agent, or when the premises for conducting the<br>business of an employment agent are found to be unfit. The commissioner may revoke a license<br>upon due notice to the holder of the license and upon due cause. Failure to comply with the<br>duties, terms, conditions, or provisions of this chapter, or any lawful orders of the commissioner<br>is due cause to revoke a license.34-13-04. License term and fee. All such licenses must be issued for a period of oneyear only, and the annual fees must be paid to the commissioner who shall promptly deliver them<br>to the state treasurer, who shall deposit all such moneys in the general fund. The annual fee for<br>such a license is two hundred dollars.34-13-05.Applicant to furnish bond.Every application for a license must beaccompanied by a bond in the penal sum of five thousand dollars, with one or more sureties or a<br>duly authorized surety company, to be approved by the commissioner and filed in the<br>commissioner's office, conditioned that the agent will conform to and not violate any of the terms<br>or requirements of this chapter or violate the covenants of any contract made by such agent in<br>the conduct of said business. Action on this bond may be brought by and prosecuted in the<br>name of any person damaged by any breach or any condition thereof, and successive actions<br>may be maintained thereon.34-13-06. Form and contents of license. After an application for a license has beengranted, a license must be issued to the applicant which must state the name of the employment<br>agent, and, if a corporation, the names of the officers, if a limited liability company, the names of<br>the managers, if a partnership, the names of the partners, the location of the office where the<br>business is to be conducted, and the name of the person who is to be charged with the general<br>management of the business. The license must also be numbered and dated.34-13-07. Duration of license. Every license, unless previously revoked, remains inforce until one year after its issue, and every employment agent shall, upon payment of the<br>amount of the license fee required and the filing of a new bond or an authenticated certificate<br>continuing a bond previously approved by the commissioner, have issued to it a license for the<br>ensuing year, unless the commissioner refuses to do so for any of the reasons stated in this<br>chapter.34-13-08. Suspension or revocation of license. If the commissioner finds that theemployment agent has violated any of the provisions of this chapter, or has acted dishonestly in<br>connection with the agent's business, or has improperly conducted the agent's business, or that<br>any other good and sufficient reason exists within the meaning and purpose of this chapter, thePage No. 2commissioner may suspend or revoke the employment agent's license, or refuse to grant a new<br>license to the employment agent upon the termination thereof; but in any case no such action<br>may be taken until a written notice has been sent to the employment agent specifying the<br>charges against the employment agent and the employment agent has been given a hearing, if<br>the employment agent requests, and a reasonable opportunity to disprove or explain the<br>charges.34-13-09.Transfer of license - Consent to others becoming connected withlicensee. No license granted under the terms of this chapter is transferable, except with the<br>consent of the commissioner. No employment agent may permit any person not mentioned in<br>the license to become connected with the business as a partner, as an active officer of a licensed<br>corporation, or as an active manager of a licensed limited liability company unless the consent of<br>the commissioner is first obtained. Such consent may be withheld for any reason for which an<br>original application for a license might have been rejected, if the person in question had been<br>mentioned therein. If such consent is given, the names of the persons so becoming connected<br>with the employment agency must be endorsed upon the license and, if such license is renewed,<br>must be substituted for or added to the names of the persons originally mentioned therein.34-13-10. Place of business. No employment agent may open, conduct, or maintain anemployment agency at any other place than that specified in the license without first obtaining the<br>consent of the commissioner. Such consent may be withheld for any reason for which an original<br>application might have been rejected, if such place had been mentioned therein. If such consent<br>is given, it must be endorsed upon the license and, if such license is renewed, such other place<br>must be substituted for the place originally named in the license. So long as any employment<br>agent continues to act as such under the person's license, the employment agent shall maintain<br>and keep open an office or place of business at the place specified in the license.34-13-11. License classifications. Repealed by S.L. 1995, ch. 341, </p>
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