Chapter DWD 277

DWD 277.09(1) (1) Classifications of licenses.

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)(a)1. 1. Administrative

DWD 277.09(1)(a)2. 2. Clerical

DWD 277.09(1)(a)3. 3. Commercial

DWD 277.09(1)(a)4. 4. Executive

DWD 277.09(1)(a)5. 5. Professional

DWD 277.09(1)(a)6. 6. Sales

DWD 277.09(1)(a)7. 7. Technical

DWD 277.09(1)(a)8. 8. Domestic, household employer, unskilled or untrained

DWD 277.09(1)(a)9. 9. Industrial worker or mechanic, skilled or unskilled.

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) (2) Fee schedules.

DWD 277.09(2)(a) (a) Class I applicant-paid fee agencies.

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) (c) Class III nurses registry agencies.

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) (d) Class IV other agencies.

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) (3) Other requirements.

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 History History: 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 277.10 DWD 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(1)(a) (a) Name of the person paying the fee.

DWD 277.10(1)(b) (b) Amount of the fee.

DWD 277.10(1)(c) (c) Date of payment of the fee.

DWD 277.10(1)(d) (d) Balance due, if any.

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 History History: 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 277.11 DWD 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 History History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. (2), (3) and (4), Register, June, 1985, No. 354, eff. 7-1-85.

DWD 277.13 DWD 277.13 Applicant travel expense. The employment agent shall clearly advise the applicant who is liable for all necessary expenses incurred by the applicant when referred to a position outside the city where the agent is located. Failure by the agent to advise the applicant either verbally or in writing who is responsible for the expenses shall result in the employment agent being liable for the expenses incurred.

DWD 277.13 History History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; r. and recr. Register, June, 1985, No. 354, eff. 7-1-85.

DWD 277.14 DWD 277.14 Records to be kept. For the purpose of this chapter, each employment agency shall keep, in the English language, for at least 2 years, the following records:

DWD 277.14(1) (1) A record of all applications for employment showing the name and address of the applicant.

DWD 277.14(2) (2) A record of all persons referred to employers, the date of referral, whether they are hired or not.

DWD 277.14(3) (3) A record of all job orders for employees received from employers. Such job orders shall be numbered consecutively and shall show the name and address of the employer, the name and position of the person placing the order, the kind of employee requested, the nature of the employment, the salary or wages to be paid and the duration of the job.

DWD 277.14(4) (4) A record of all payments to the agency of any and all placement fees received and refunded. Each record shall show the date of each transaction, the name of the person making the remittance, the amount paid, a duplicate receipt, and the date and amount of any refund.

DWD 277.14(5) (5) A record of jobs advertised correlated to show date and publication in which the ad appeared and the job order number of each job advertised.

DWD 277.14(6) (6) A record of fee agreement negotiations showing the amount to be paid by each party.

DWD 277.14 History History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; am. (2), Register, June, 1985, No. 354, eff. 7-1-85.

DWD 277.15 DWD 277.15 Applicant-paid fee agents.

DWD 277.15(1) (1) All advertising, including newspaper ads, informational flyers, and bulletins, shall contain the name of the employment agency and a statement that the agency is a “licensed employment agent.”

DWD 277.15(2) (2) Advertisements for positions located in communities other than that in which the employment agency is located shall clearly indicate that fact for each position advertised may require geographic relocation.

DWD 277.15(3) (3) Positions listed in the “Help Wanted” columns of newspapers or other media shall refer to bona fide openings available at the time that the advertisement or copy is given to the publisher.

DWD 277.15(4) (4) When an agent operates separate divisions within the agency and the separate divisions are operated under different names than the licensed agent, then all advertising shall contain the name of the licensed agent and the fact that the agent is licensed.

DWD 277.15 History History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; am. (2) and cr. (4), Register, June, 1985, No. 354, eff. 7-1-85.

DWD 277.16 DWD 277.16 Inducing discharge or termination of employment. No employment agent shall persuade, induce or procure, or attempt to persuade, induce, or procure any employer or agent of any employer to discharge any employee.

DWD 277.16 History History: Cr. Register, July, 1970, No. 175, eff. 8-1-70.

DWD 277.18 DWD 277.18 Posting of license, fee schedule, and rules.

DWD 277.18(1) (1) The license shall be posted in a conspicuous place in the main room of the agency.

DWD 277.18(2) (2) The name of the agency and the fact that he is licensed shall be posted on or near the main entrance door of the agency.

DWD 277.18(3) (3) All stationery, contracts, and fee schedules shall contain the name of the employment agency and a statement that the agency is a “licensed employment agent.”

DWD 277.18(4) (4) A copy of ch. 105, Stats., and ch. DWD 277 shall be posted or made readily available to visitors in the main room of the agency.

DWD 277.18 History History: Cr. Register, July, 1970, No. 175, eff. 8-1-70; correction in (4) made under s. 13.93 (2m) (b) 7., Stats., Register, February, 1996, No. 482.

DWD 277.19 DWD 277.19 Notice to home care consumers and workers.

DWD 277.19(1) (1) Definitions. In this section:

DWD 277.19(1)(a) (a) “Home care consumer” or “consumer” has the meaning given in s. 105.115 (1) (b), Stats.

DWD 277.19 Note Note: Section 105.115 (1) (b), Stats., provides that “home care consumer” means “a person who receives home care services in his or her temporary or permanent residence from a home care worker.”