Code of Massachusetts Regulations
454 CMR - DEPARTMENT OF LABOR STANDARDS
Title 454 CMR 24.00 - EMPLOYMENT AGENCY AND TEMPORARY WORKERS RIGHT TO KNOW REGULATIONS
Section 24.09 - Provisions and Restrictions Relating to Applicant Fees and Client Fees and Charges Assessed by Employment Agencies

Universal Citation: 454 MA Code of Regs 454.24

Current through Register 1531, September 27, 2024

(1) Client Fee Restrictions. There are no restrictions on Client Fees charged by an Employment Agency.

(2) Workers or Job Applicants Who Are Hired at an Annual Wage of over $40,000.00. The provisions of 454 CMR 24.09(4) and (5) shall not apply to Workers or Job Applicants who are hired at an annual wage of over $40,000.00, provided that any Fees or Charges assessed by an Employment Agency to the Worker or Job Applicant do not violate M.G.L. c. 151 or 454 CMR 24.00.

(3) Written Disclosure to Job Applicant. Any Employment Agency that is not the Employer of the Job Applicant or Worker that it places, refers, or assigns, and that charges an Applicant Fee to the Job Applicant or Worker, is required to disclose in writing to the Applicant, or Worker, the amount of the Client Fee paid by the Employer or Client to the Employment Agency for placing the Job Applicant or Worker.

(4) Applicant Fee Restrictions. In accordance with M.G.L. c. 140, § 46L, an Employment Agency may charge Applicant Fees only if each of the following conditions are met:

(a) The Employment Agency is not also a "Staffing Agency" as defined in 454 CMR 24.02: Staffing Agency.

(b) The Applicant Fees must be enumerated in a written contract between the Job Applicant or Worker and the Employment Agency.

(c) The Employment Agency has referred the Job Applicant or Worker to a job in which the Job Applicant or Worker has been hired.

(d) No Applicant Fee may be charged by an Employment Agency to register Job Applicants or Workers.

(e) Applicant Fee amounts must be based on the wage or salary at which the Job Applicant or Worker is hired, as further illustrated by 454 CMR 24.09(4)(i): Chart A.

(f) No Job Applicant or Worker shall be required to pay any Applicant Fee in fewer than four equal installments, each of which shall be payable at the end of the first four pay periods following the Employment or within a period of eight weeks, whichever is shorter.

(g) All Applicant Fees are subject to M.G.L. c. 151, § 1, and 455 CMR 2.00: Minimum Wage. In addition, no Applicant Fee shall be charged that would result in the Job Applicant or Worker's average hourly wages for that period to fall below the rates established by any applicable federal law or by M.G.L. c. 151, § 1, or by any applicable collective bargaining agreement.

(h) In no case may an Applicant Fee be charged for a Temporary Employment, Engagement, work assignment, or job that exceeds the Applicant Fee charged for permanent employment.

(i) The total Applicant Fees charged may not exceed the following schedule:

CHART A

TYPE OF WORK

MAXIMUM APPLICANT FEE

M.G.L.

Any Domestic Employee agreement for an assignment shorter than one month in duration

* If no meals or lodging are provided: 10% of salary or wages actually received

* If one meal per working day is provided: 12% of salary or wages actually received

* If two meals per working day are provided: 14% of salary or wages actually received

* If three meals and lodging per working day are provided: 18% of salary or wages actually received

c. 140, § 46L(C)(1)(b)

Any Temporary Employment shorter than ten weeks in duration

Total fee may not exceed 10% of the wages or salary actually received

c. 140, § 46L(C)(2)

Any employment agreement for an assignment shorter than four months in duration

Fees shall not exceed in percentage the first full month's salary or wages of the following:

* less than $225, not to exceed 12.5%

* at least $225 but less than $270, not to exceed 17.5%

* at least $270 but less than $300, not to exceed 20%

* at least $300 but less than $330, not to exceed 22.5%

* at least $330 but less than $365, not to exceed 25%

* at least $365 but less than $400, not to exceed 27.5%

* at least $400, not to exceed 30%

OR

* 10% of wages actually received, whichever is less

c. 140, § 46L(C)(4)(c)

Model Employment/Assignments/Engagements

Total fee may not exceed 10% of the wages or salary actually received by the model for Employment/ Assignment/Engagement

c. 140, § 46L(C)(3)

Permanent domestic (household) employment, permanent employment of unskilled or untrained workers for manual work/ laborers, or permanent employment in agricultural work

* If no meals or lodging are provided: 10% of first full month's salary or wages

* If one meal per working day is provided: 12% of first full month's salary or wages

* If two meals per working day are provided: 14% of first full month's salary or wages

* If three meals and lodging per working day are provided: 18% of first full month's salary or wages

c. 140, § 46L(C)(1)

Permanent domestic employment by workers from outside MA but within the U.S., having been placed in a job by an employment agency using the services of an emigrant agent

If three meals per day and lodging are provided: not more than $80

c. 140, § 46L(C)(1)(a)

Permanent non-professional trained or skilled industrial workers or mechanics

Total fee may not exceed one week's wages

c. 140, § 46L(C)(2)

All other permanent employment

Fees shall not exceed in percentage of the first full month's salary or wages the following:

less than $225, not to exceed 25%

* at least $225 but less than $270, not to exceed 35%

* at least $270 but less than $300, not to exceed 40%

* at least $300 but less than $330, not to exceed 45%

* at least $330 but less than $365, not to exceed 50%

* at least $365 but less than $400, not to exceed 55%

* at least $400, not to exceed 60%

c. 140, § 46L(C)(4)(a)

Permanent employment paid on a straight commission basis

Total fee to be based on the percentages prescribed above, equivalent to one twelfth of the computed first year earnings as estimated by the employer

c. 140, § 46L(C)(4)(b)

(5) Restrictions on Charges for Goods and Services.

(a) Employment Agencies may offer a range of ancillary services for Job Applicants or Workers, but no charges for goods or services may be required of any Job Applicant or Worker except pursuant to a written agreement voluntarily entered into by the Job Applicant or Worker. Charges may be further limited by M.G.L. c. 149, §§ 148 and 150, and c. 151 and its regulations. Written authorization does not make a charge lawful if it is otherwise unlawful.

(b) Agreements for the purchase of all services or products must be in writing, signed by the Job Applicant or Worker and maintained as records pursuant to 454 CMR 24.14. Such agreements must explicitly state that the purchase of said service or product is optional and not a condition of representation, acceptance or placement by the Employment Agency.

(c) Employment Agencies are prohibited from requiring Job Applicants or Workers to pay for training, consultation, or education at any specific school, course, seminar, or class, or to participate in any specific convention, scouting event, search, competition, or pageant, or to post information or photographs on any specific website, or in any publication which charges for such participation or services, as a prerequisite to signing with an Employment Agency or to maintain representation by an Employment Agency.

(d) Employment Agencies are prohibited from requiring that a Job Applicant or Worker use a specific vendor for the purchase of goods or services.

(e) Charges shall not be assessed to a Job Applicant or Worker for the provision of any bank card, debit card, payroll card, voucher, draft, money order or similar form of payment of wages, criminal offender record information (CORI) check, drug screen, or any other service that exceeds the actual cost for providing such service.

(6) Provisions Relating to Goods or Services Required by Modeling Agencies. Where Models (or prospective Models) are required to receive training, education, styling, fashion consultation, photographs, or printing for composite cards, the Modeling Agency shall provide a list of at least three names of providers of such services, with contact information. In the event that any Model chooses to use the services of a school, trainer, photographer, consultant, stylist, or printer that is not on the Modeling Agency's referral list, the Modeling Agency may not deny its representation services to the Model Job Applicant or Worker for that reason. Modeling agencies may not charge prospective or working Models for inclusion in an Agency promotional book, agency website, or other promotional material.

(7) Advances. If the Employment Agency has advanced money to a Job Applicant or Worker for any purpose, the Employment Agency shall provide a written statement to the Job Applicant or Worker indicating the amounts due the Employment Agency and the deadline for repayment.

(8) Refunds. Any Employment Agency that collects, receives, or retains an Applicant Fee, deposit, or other payment contrary to or in excess of the provisions of the Statute and 454 CMR 24.09 shall return the payment or the excess portion thereof within seven days of the receipt of a demand for the same.

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