Wisconsin Legislature: DWD 277.06(2)(c)

(2) The $5.00 registration fee covers all business locations of the requesting agent.

History: Cr. Register, April, 1991, No. 424, eff. 5-1-91.

DWD 277.02 Application for a license.

(1) In order to apply for licensure as an employment agent under ch. 105, Stats., an applicant shall fully complete a written application form furnished by the department and return it to the department of workforce development, equal rights division, at Room 403, 201 E. Washington Avenue, Madison, Wisconsin, or mail to P.O. Box 8928, Madison, Wisconsin 53708. This application shall be accompanied by a $5,000 surety bond required by s. 105.06, Stats., and the minimum license fee of $50.00 required by s. 105.06, Stats. The license application may not be processed until all 3 of the above documents have been received by the department. If the license application is not approved and a license issued, the $50.00 license fee shall be refunded to the applicant.

(2) Within 30 working days of receipt of the application, bond and minimum license fee, the department may hold a public hearing to determine if the applicant is of sufficient character to operate an employment agency and whether the quarters of the proposed agency are suitable for use by an employment agency. In scheduling the public hearing, a notice shall be mailed to each licensed employment agency and other interested parties at least 10 calendar days prior to the hearing.

(3) Within 10 working days after completion of the public hearing, the examiner shall issue proposed finding of fact and a proposed order to either grant or refuse the license application. Interested parties that either appeared to testify at the hearing or submitted written testimony at or prior to the hearing shall receive a copy of the proposed findings of fact and order. Parties receiving a copy of the proposed order may appeal it within 10 calendar days of the issuance of the proposed order by requesting in writing an opportunity to present oral or written arguments to the department secretary or the secretary’s designated representative. Appeals shall be sent to the address listed on the cover letter accompanying the proposed order. In hearings where no one has testified in opposition to the granting of the license, where the examiner proposes granting the license and where it appears there is no one to object to the granting of the license, the department may forego the proposed order and issue findings of fact and a final order after the hearing.

(4) Within 5 working days after the proposed order appeal period expires, the department shall issue findings of fact and a final order except if a timely appeal has been received. In such cases, the department within 15 working days of receipt of the appeal shall either schedule the secretary or the secretary’s designated representative to hear oral arguments or to receive written arguments on why the proposed order should be modified or reversed. The secretary or secretary’s representative within 30 calendar days of receipt of all parties arguments shall issue findings of fact and the final order of the department.

(5) Approval of applications for a license shall expire 90 days after date of order if the agency has not commenced operation. Extensions of 30 days may be granted by the department where extenuating circumstances exist.

History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. and recr. (1), renum. (2) to be (5), cr. (2), (3) and (4), Register, June, 1985, No. 354, eff. 7-1-85.

DWD 277.03 Character and premises.

(1) “Character,” as used in s. 105.13, Stats., includes components of an applicant’s ability to be an agent; such as, his or her moral character, education, business integrity, fiscal integrity, training and knowledge of the employment business, capability of staff, and the extent of his or her participation in operating the agency.

(2) “Premises” as used in s. 105.13, Stats., includes components of the following to be considered as fit for the use by private employment agents; such as, location, size, neighborhood, public access, access for individuals with disabilities, public restroom facilities, compliance with local zoning and building codes, occupancy permit, principal place of business and the types or services provided at the licensed facility.

History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; am. (1), r. and recr. (2), r. (3), Register, June, 1985, No. 354, eff. 7-1-85; CR 20-031: am. (2) Register October 2021 No. 790, eff. 11-1-21.

DWD 277.04 Licensee. A license to operate as an employment agent under ch. 105, Stats., may be issued to a person, partnership or corporation. If a license is issued to a corporation or transferred from an individual or partnership to a corporation, the following conditions shall apply:

(1) The corporation shall be licensed to do business in the state of Wisconsin, shall maintain therein all records with respect to the operations of the agency within the state of Wisconsin, and shall appoint a manager or managers who shall reside in Wisconsin, and who shall consent to service of process by certified mail addressed to the agency.

(2) The licensee shall notify the department immediately if there is a change in managers.

(3) The corporation shall file with the department a certified statement setting forth the names, home addresses and telephone numbers of all officers and directors of the corporation and their respective interest therein.

History: Cr. Register, July, 1970, No. 175, eff. 8-1-70.

DWD 277.05 License coverage.

(1) Private employment agency licenses are limited by the terms and classifications set forth thereon.

(2) Said license shall constitute a license from this state to operate as an employment agent for compensation and shall not be transferable to any other person or persons whatever, or inure to the benefit of any person other than the licensee.

(3) When the sale, transfer or assignment of the agency or the controlling interest of the agency takes place, the assuming principals shall proceed to obtain a license in the same manner as any other applicant for a license.

(4) If the sale, transfer or assignment is not contingent on the approval of the license application by the department, the agency shall cease operation until such time as the department issues a license.

History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. and recr. (3) and (4), Register, June, 1985, No. 354, eff. 7-1-85.

DWD 277.06 License renewal.

(1) Before May 31 of each year, the department shall mail a renewal application and bond form to each licensed agent.

(2) By July 10 of each year, each licensed agent shall submit to the department the following:

(a) The completed renewal application.

(b) Required surety bond.

(d) The minimum license fee for the next year.

(e) Applicant fee schedule.

(3) A license may be withheld until all of the information under sub. (2) is furnished and may be suspended if the license fee is not paid.

(4) Each license shall expire annually on June 30 of each year or the date stated thereon.

(5) When a licensee has made a timely and sufficient application for the renewal of their license, the existing license remains in effect until the renewal application has been finally acted upon by the department.

History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. and recr. (6), Register, June, 1985, No. 354, eff. 7-1-85; r. (2) (f), Register, April, 1991, No. 424, eff. 5-1-91.

DWD 277.07 Licenses withheld, suspended, or revoked.

(1) The license may be withheld, suspended, or revoked by the department if the applicant for a license or licensee fails to meet the requirements of ch. 105, Stats., or ch. DWD 277.

(2) The license may be withheld, suspended, or revoked by the department if the licensee fails to meet the requirements of the Wisconsin fair employment law, ss. 111.31 to 111.395, Stats., Wisconsin labor standards laws applying to the payment of minimum wage, ch. DWD 272, overtime, ch. DWD 274, and complying with the wage payment and collection law, ch. 109, Stats.

History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. and recr. (2), Register, June, 1985, No. 354, eff. 7-1-85; corrections made under s. 13.93 (2m) (b) 7., Stats., Register, February, 1996, No. 482.

DWD 277.08 Moving place of business.

(1) No agent shall open, conduct or maintain an office at any place of business other than that approved by the department.

(2) A place of business shall not be moved unless the agent first obtains the written consent of the department.

(3) No branch office or additional place of business shall be opened without the prior approval of the department.

History: Cr. Register, July, 1970, No. 175, eff. 8-1-70.

DWD 277.09 Classifications, fee schedules, and other requirements.

(1) Classifications of licenses.

(a) Class I applicant-paid fee agencies. A class I license is for agencies which charge and collect a fee from the applicant for securing work for persons in the following positions:

1. Administrative

2. Clerical

3. Commercial

4. Executive

5. Professional

6. Sales

7. Technical

8. Domestic, household employer, unskilled or untrained

9. Industrial worker or mechanic, skilled or unskilled.

(b) Class II modeling agencies. A class II license is for agencies which secure work for persons to act as live models or to model for photography.

(c) Class III nurses registry agencies. A class III license is for agencies which operate a nurses registry which secure work for persons who are licensed practical nurses and registered nurses.

(d) Class IV other agencies. A class IV license is for agencies whose activities are of a specialized nature or limited to specific areas of activity or types of placement that do not fall under the other classes of license.

(2) Fee schedules.

(a) Class I applicant-paid fee agencies.

1. For placement of 3 calendar months or more duration, regarded as a permanent position by both parties, the total fee charged to an applicant for employment may not exceed the following schedule:

a. Positions paying less than $583.33 per month — 72% of the first month’s salary.

b. Positions paying $583.33 or more but less than $666.66 per month — 84% of the first month’s salary.

c. Positions paying $666.66 or more but less than $750 per month — 96% of the first month’s salary.

d. Positions paying $750 or more but less than $833.33 per month — 108% of the first month’s salary.

e. Positions paying $833.33 or more per month — 120% of the first month’s salary.

2. The total fee charged to an applicant for employment for temporary placements of less than 3 calendar months may not exceed 20% of the wages or salary of the applicant. The total fee charged for a temporary placement may not exceed 75% of the fee charged for a permanent placement.

(b) Class II modeling agencies. The total fee charged to an applicant for employment may not exceed 15% of the sum received by the applicant from the employer. In addition to the 15% charge to the applicant, the agent may also charge the client a service charge for specific services performed.

1. For private nursing the total fee charged to the applicant for employment may not exceed 5% of the wages or salary received by the applicant from the employer.

2. The total fee charged to the applicant for employment for all other placements may not exceed those prescribed in par. (a) 1.

3. If prior approval from the department is received, a registration fee may be charged not to exceed $20 per month providing each applicant for employment is given a reasonable number of bona fide job offers and the actual registration fee does not exceed 5% of the annual wages or salary received. If the applicant registers for a lesser period of time, the sum received may be prorated to the actual period of availability.

(d) Class IV other agencies.

1. Charges to the applicants for services or employment shall be approved as being reasonable for the services offered or provided.

2. Each agent or applicant for a class IV license shall submit to the department for approval:

a. A schedule of fees, charges, and commissions which they intend to charge to applicants for service or employment.

b. Copies of all forms and contracts pertinent to the placement of applicants to be used in the operation of the agency.

c. Adequate supporting materials justifying the proposed schedule of fees and contracts.

(3) Other requirements.

(a) All fee schedules of class I, II, III and IV agencies for applicants for employment shall base the fee upon the first month’s salary.

(b) The fees contained in sub. (2) are presumed reasonable, and application for the fees shall be approved without supporting materials. If an applicant for a license or agent submits a schedule of higher fees, the applicant or agent shall file a supporting statement specifying the reasons for, and reasonableness of, the requested variance. In such cases, the department shall deny the request if it determines that the requested schedule is unreasonable. No agent shall request or accept any placement fee or charge until the placement is made.

(c) Agencies may be limited to specific areas of operation within a class or may be licensed to operate in more than one classification.

(d) No charge for a placement may be made by an agency to an applicant unless the agency has made arrangements to bring to the attention of the employer the qualifications of the available applicant by means of an employment interview and the applicant accepts employment.

(e) If an applicant accepts a position to which they were referred by an agency with the understanding that the fee or any portion of the fee was to be paid by the employer, and they leave that position for any reason, they are not liable to the agency for that part of the placement fee understood to be paid by the employer, notwithstanding contractual provisions to the contrary.

(f) If an employee is referred to a position by an agency with the understanding that the fee is negotiable, the results of this fee negotiation shall be made a part of the agency’s record, and the employee is not liable to the agency for that portion of the fee which the employer has agreed to pay, notwithstanding contractual provisions to the contrary.

(g) For placements in hourly paid positions, the total fee charged to the applicant for employment shall be computed on the basis of an amount not to exceed the actual earnings of the employee during the first 41⁄3 weeks of employment.

(h) If a job applicant accepts employment and thereafter fails to report for work, the gross fee charged to such applicant may not exceed 25% of the maximum fee allowed in this section, provided, however, if the applicant remains with their same employer, the fee may not exceed 50%.