Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUE
Article 9 - EMPLOYMENT AGENCIES
Rule 1 - General Provisions
Section 1-4 - Form of contracts; collection of fees; refunds
Universal Citation: 45 IN Admin Code 1-4
Current through September 18, 2024
Authority: IC 6-8.1-3-3; IC 25-16-1-18; IC 25-16-2-1
Affected: IC 25-16-1
Sec. 4.
Contracts.
(a) Form of Contract. Every agency shall give to every applicant from whom a fee is to be received a contract, in which is stated all of the following:
(1) The name of the agency.
(2) The name and address of the employer
communicating the order of the employment.
(3) The date of issuing the
contract.
(4) The name of the
applicant, the name of the employer to whom the applicant is sent, and the
address where the applicant is to report for employment.
(5) The amount of fee to be charged and to be
collected from the applicant and the amount of fee paid or advanced by the
prospective employer and by whom paid or advanced.
(6) The kind of work or employment by job
title.
(7) The daily hours of work;
the wage or salary including any additional benefits of employment.
(8) Specific description of fees and refunds
as provided by this regulation, and any other term, condition, or understanding
agreed upon between the agency and applicant.
(9) There shall be printed on the face of the
contract, clearly and conspicuously, in type no smaller than 10-point bold the
following: "This agency is licensed by the Department of Revenue of the State
of Indiana. Administrator for Licensed Employment Agencies, Room 104B, State
Office Building, Indianapolis, Indiana 46204."
(10) Every such contract or receipt shall be
made in original and duplicate, both to be signed by the applicant and the
person acting for the employment agency. The duplicate shall be given to the
applicant and the original shall be kept on file at the agency for three (3)
years.
(b) Fees.
(1) A fee shall not be collected until an
employment position has been secured (as defined herein).
(2) A schedule of fees shall be printed on
the face of the contract with both dollar amounts and/or percentages of gross
yearly earnings and/or gross monthly earnings shown. The schedule shall be
filed with Administrator for Employment Agencies.
(3) The fee schedule shall be made up of a
Permanent Position schedule and Temporary Position schedule.
(4) If the fee is to be paid partially by the
employer, this shall be clearly expressed on the face of the
contract.
(c) Refunds.
(1) When a Permanent Position becomes a
Temporary Position, the fee shall be recomputed. A refund shall be due the
applicant for any difference between the amount paid to the agency that is
greater than the fee for the actual Temporary Position. If the fee for the
actual Temporary Position is greater than the amount already paid by the
applicant, the balance shall be due the agency from the applicant.
(2) It is possible for a Permanent Position
to terminate within ninety (90) days and not be considered a Temporary Position
for the purpose of this regulation. In such an instance the full Permanent
Position fee is due to the agency. Such a termination must be verified by the
employer or his agent expressing that the termination was "unilateral" in
nature. A "unilateral" termination shall be one where an applicant voluntarily
leaves a position or is terminated for cause by the employer. Activities
considered by the Department of Revenue as sufficient for termination for cause
include, but are not limited to, intoxication, dishonesty, unexcused tardiness,
unexcused absenteeism, or insubordination.
(3) When a contract provides for a refund
when a position is terminated through no fault of the applicant, a refund is
due and/or a recomputation to a Temporary Position fee is required unless a
"unilateral termination" is verified by the employer or his agent.
(4) All refunds shall be paid and at no time
shall be shown as a credit to the account of the applicant.
(d) General Guidelines.
(1) Any statement on the face of the contract
indicating that a deduction for income tax purposes is available for fees paid
by the applicant for an employment position, must not state that such a
deduction is available for Indiana State Income Tax purposes.
(2) No contract may contain the statement
"Application for Employment," or any statement to that
effect.
Disclaimer: These regulations may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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