DWD 277.05(1)(1) Private employment agency licenses are limited by the terms and classifications set forth thereon. DWD 277.05(2)(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. DWD 277.05(3)(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. DWD 277.05(4)(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. DWD 277.05 HistoryHistory: 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(1)(1) Before May 31 of each year, the department shall mail a renewal application and bond form to each licensed agent. DWD 277.06(2)(2) By July 10 of each year, each licensed agent shall submit to the department the following: DWD 277.06(2)(c)(c) Balance of unpaid license fees for previous license year, if any. DWD 277.06(3)(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. DWD 277.06(4)(4) Each license shall expire annually on June 30 of each year or the date stated thereon. DWD 277.06(5)(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. DWD 277.06 HistoryHistory: 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 277.07DWD 277.07 Licenses withheld, suspended, or revoked. DWD 277.07(1)(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. DWD 277.07(2)(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. DWD 277.07 HistoryHistory: 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(1)(1) No agent shall open, conduct or maintain an office at any place of business other than that approved by the department. DWD 277.08(2)(2) A place of business shall not be moved unless the agent first obtains the written consent of the department. DWD 277.08(3)(3) No branch office or additional place of business shall be opened without the prior approval of the department. DWD 277.08 HistoryHistory: Cr. Register, July, 1970, No. 175, eff. 8-1-70. DWD 277.09DWD 277.09 Classifications, fee schedules, and other requirements. DWD 277.09(1)(a)(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: DWD 277.09(1)(b)(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. DWD 277.09(1)(c)(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. DWD 277.09(1)(d)(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. DWD 277.09(2)(a)1.1. 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: DWD 277.09(2)(a)1.a.a. Positions paying less than $583.33 per month — 72% of the first month’s salary. DWD 277.09(2)(a)1.b.b. Positions paying $583.33 or more but less than $666.66 per month — 84% of the first month’s salary. DWD 277.09(2)(a)1.c.c. Positions paying $666.66 or more but less than $750 per month — 96% of the first month’s salary. DWD 277.09(2)(a)1.d.d. Positions paying $750 or more but less than $833.33 per month — 108% of the first month’s salary. DWD 277.09(2)(a)1.e.e. Positions paying $833.33 or more per month — 120% of the first month’s salary. DWD 277.09(2)(a)2.2. 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. DWD 277.09(2)(b)(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. DWD 277.09(2)(c)1.1. 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. DWD 277.09(2)(c)2.2. The total fee charged to the applicant for employment for all other placements may not exceed those prescribed in par. (a) 1. DWD 277.09(2)(c)3.3. 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. DWD 277.09(2)(d)1.1. Charges to the applicants for services or employment shall be approved as being reasonable for the services offered or provided. DWD 277.09(2)(d)2.2. Each agent or applicant for a class IV license shall submit to the department for approval: DWD 277.09(2)(d)2.a.a. A schedule of fees, charges, and commissions which they intend to charge to applicants for service or employment. DWD 277.09(2)(d)2.b.b. Copies of all forms and contracts pertinent to the placement of applicants to be used in the operation of the agency. DWD 277.09(2)(d)2.c.c. Adequate supporting materials justifying the proposed schedule of fees and contracts. DWD 277.09(3)(a)(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. DWD 277.09(3)(b)(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. DWD 277.09(3)(c)(c) Agencies may be limited to specific areas of operation within a class or may be licensed to operate in more than one classification. DWD 277.09(3)(d)(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. DWD 277.09(3)(e)(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. DWD 277.09(3)(f)(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. DWD 277.09(3)(g)(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. DWD 277.09(3)(h)(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%. DWD 277.09(3)(i)(i) If a placement fee is paid partially by the applicant and partially by the employer, the total fee that the agency may charge for that placement may not exceed the applicant’s fee schedule on file and approved by the department. DWD 277.09 HistoryHistory: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. and recr. Register, June, 1985, No. 354, eff. 7-1-85; r. (1) (e) and (2) (e), Register, April, 1991, No. 424, eff. 5-1-91. DWD 277.10DWD 277.10 Receipts, refunds, and other contractual provisions applicable to all classes. DWD 277.10(1)(1) The agency shall give every person from whom a fee is received for services rendered a receipt which shall include: DWD 277.10(2)(2) If an applicant is entitled to a refund from the fee paid, the agency shall make such refund in cash or negotiable check within 10 days. DWD 277.10(3)(3) No interest or carrying charges, except for payment of delinquent fees or charges, for placement services may be made that would cause the total placement fee to be paid to exceed the schedules on file with the department of workforce development. No agent shall charge an applicant interest for failure to make payment of fees when due, unless the interest requirement and the interest rate are stated on a written contract signed by the applicant. An agent may be reimbursed for any disbursements made on behalf of an applicant or employer where authorization for disbursement and reimbursement has been given. DWD 277.10(4)(4) An agent may include as part of the agency contract a provision that, if an applicant is referred to an employer for a permanent position and fails to get that position, but, within 6 months does secure employment with that employer as a result of the referral, he or she may be liable for the fee to the agency. DWD 277.10(5)(5) The agency and applicant may agree on a schedule of payment of the fee for a permanent placement, but in no case may more than 60% of the first month’s earnings be required to be paid to the agency in the first 30 days of employment, if the total fee exceeds 60% of the first month’s earnings. DWD 277.10(6)(6) An agency which requires an applicant to sign a contract shall have the terms of the contract and the fee schedule printed in its entirety and in not less than 8 point type and shall give to the applicant a copy of the signed contract. DWD 277.10(7)(7) No agency may take from an applicant a confession of judgment, a promissory note or notes, or an assignment of wages to cover its fees. DWD 277.10(8)(8) Upon every contract shall be printed the following statement: “Complaints against employment agents may be made to the State of Wisconsin, Department of workforce development, P.O. Box 8928, Madison, Wisconsin 53708.” DWD 277.10 HistoryHistory: Cr. Register, July, 1970, No. 175, eff. 8-1-70; am. (4) and (8), r. and recr. (5), Register, June, 1985, No. 354, eff. 7-1-85. DWD 277.11DWD 277.11 Orders from employers. No employment agent shall refer an employee to employment without having obtained either orally or in writing authorization therefor, and if no employment of the kind specified by the employment agent existed at the place to which such employee was directed or if no other employment in substitution thereof is accepted by the employee, the agent shall within 24 hours of demand refund to the employee any sums paid by the employee for transportation in going to and returning from such place. DWD 277.11 HistoryHistory: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. (2), (3) and (4), Register, June, 1985, No. 354, eff. 7-1-85.
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Department of Workforce Development (DWD)
Chs. DWD 270-279; Labor Standards
administrativecode/DWD 277.09(1)(a)
administrativecode/DWD 277.09(1)(a)
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