Act to Update State Employment Agencies- S 2364
An act to update and streamline the State Employment Agencies is in Senate Ways and Means
Action Required: Please call Senator Panagioutakos, 617-722-1630 and urge that the bill be released for debate in the Senate.
Background: The Commonwealth’s Employment Agency (EA) Law (G.L. c. 140, §§ 46A-R) currently leaves large gaps in coverage and protection, and has different requirements for similar businesses. Depending on whether an agency works to place employees in permanent or temporary positions, or whether agency fees or charges are paid by the job applicant or the employer client, licensing, record keeping, and other requirements vary greatly. At the same time, Massachusetts workers employed by certain temp agencies are being denied their basic rights. The new EA Law will streamline provisions that burdened the industry, place all employment and staffing agencies on a level playing field, simplify requirements imposed by the Division of Occupational Safety (DOS), and incorporate the protections of the Temporary Worker Right to Know bill which carried the same bill numbers, S. 680.
For Workers: The bill provides much-needed protection for workers in temporary jobs. Since many temporary jobs are low-wage and characterized by high turnover, these workers constitute some of the most vulnerable members of the workforce. Frequently, workers are sent off not knowing where they are going, what they are doing, who they are working for, what they will be getting paid, or anything much more than a nickname for a contact person. Only after they begin working, do they discover charges for transportation, meals, or necessary safety equipment.
Incorporating the Temporary Worker Right to Know legislation, the new law will require agencies to provide written notice of key details of job assignments- the name of the agency, the work site employer, the type of work to be done, disclosure of who the employer is, wages, and the details and costs of transportation, equipment, and meals provided by the worksite employer. It also requires disclosure of how to reach DOS, the right to workers’ compensation, a copy of the contract to be given to the applicant, as well as a receipt for any charges paid by the applicant.
For Businesses: Currently, employment agencies that charge fees to applicants must go through a full licensing process. Other agencies, doing essentially the same business, are exempt from the licensing requirement and must simply register to operate. Under the new EA Law, all employment and staffing agencies will be subject to the same process, a less burdensome registration process. Employment agencies will no longer go through a hearing process before starting their business, nor will they be required to submit their forms and/or contracts to DOS for prior approval. The new EA law will also make it easier for businesses to transfer their registrations, by eliminating the need for pre-approval of transfer and allowing a simple registration. The law will provide clearer definitions of key terms, enabling businesses to better understand their rights and responsibilities. Additionally, the new EA law will simplify record keeping requirements.
For the Commonwealth: Required annual registration fees from all employment agencies will remain in place. Additionally, a streamlined and simplified registration and enforcement process will ease the burden on DOS by eliminating the cost of unnecessary hearings and inspections allowing DOS to focus on those agencies that attempt to circumvent the law.
For further information, please contact: Tim Sullivan, Mass. AFL-CIO, 781/324-8250; Isabel Lopez, MassCOSH, 617/825-7233; Yessenia Alfaro, Chelsea Collaborative, 617/259-6659; or Sherley Cruz or Monica Halas, Greater Boston Legal Services, 617/603-1533 or 617/603-1666..
