Chapter XI: State and Municipal Laws
Sources of information: Municipal records and ordinances; statutes; United States and State labor reports, and letters from officials in States where no legislation exists. (From every State information was requested, and any misstatements and omissions are largely due to the insufficiency or negligence of these replies.)
The unemployed class and employment agencies are both so numerous that necessarily some legislation exists. The most popular form has been the establishment of free employment agencies by the State, the success of which has been previously discussed. A few States have undertaken the actual regulation of private agencies, and have passed ordinances and statutes. Ordinances are usually more effective, since they are based on the needs of a particular community, which knows something of its own conditions; while the latter are often so abridged and amended, when finally passed, that they leave many loopholes when enforcement is attempted.
In a few States legislation adequately meets the situation; in others it is simply a blot upon the statutes. In seventeen States there is some kind of regulation, while in the remainder attempts have failed, or the need of it has not been recognized. This is particularly true of the Southern, Middle, and far Western States. Letters from officials in the large cities of these States indicate that all of the abuses common to agencies exist, and that there is a growing consciousness of the need of regulation. In all legislation, frauds are more fully recognized than are immoral practices. For purposes of comparison, and for the suggestive value to communities in need of legislation, an epitome of each of the existing laws is given. California, Colorado, Connecticut, Illinois, Louisiana, Maine, Massachusetts, Minnesota, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, Washington, and Wisconsin have State laws; and Detroit, Michigan, Providence, Rhode Island, and Seattle, Washington, have passed ordinances.
California
This law was passed in 1903, and prohibits: the tender of valuables for mere office services, and the payment of fees until a position is offered; if the employee fails to get a position, and it is through no fault of his own, the fee must be returned, and shall not exceed ten per cent. of the amount of the first month's wages; tax collectors collect the license fees, and report the names and addresses of the agencies to the Bureau of Labor; a written record must be kept, showing the names of the applicants, the amount of the fees, and the nature of the application, together with the reason for not obtaining employment; these records are open to inspection by the Commissioner of Labor; violation of the law is a misdemeanor, punishable by a fine not exceeding $500 or imprisonment not exceeding six months. In addition to this State law, San Francisco requires an additional license fee of $16 per quarter, and the sanction of the police commissioner before a license is issued.
For a State containing a city the size and importance of San Francisco, this law is inadequate. It does not touch the immoral conditions; it ignores the many adroit schemes of extortion from both employer and employee; it neglects the lodging-house situation and location of agencies, whether in saloons, gambling dens, etc.; and does not provide for the one essential of an effective law—frequent, systematic inspection.
Colorado
This law imposes a fine of $100 for not obtaining a license; cities are empowered to pass rules and regulations not in the State laws; the license must be publicly exposed in the agency; a receipt must be given, stating terms on its face, and the money must be refunded if these are violated; but five per cent. of the first month's salary and board from men and but three per cent. from women, may be charged; they may not send women to immoral places under penalty of $100 fine; help may not be sent out without a written bona-fide order with proper references of two responsible people, under penalty of a fine; dividing fees with contractors is sufficient cause for revocation of the license; the agency must register every order, with the address, number of persons in the family, nature of the work, wages, and time when employees are sent out; for misstatements or for false promises concerning work, or for failure to keep the register, the license may be revoked; the license fee is $100, the bond $1000, and a $5 fee is required for the transfer of a license.
This is one of the best laws in existence, and some of the provisions are especially worthy of consideration, since they cover specific evils. It unfortunately does not provide for inspection and ignores conditions of lodging, gifts, and location of agencies.
Connecticut
There must be a license and it must designate the street and number; no agency may be in any building where liquor is sold; the register must be in English and contain the name and address; the fee or valuable article may not exceed $2, and a receipt must be given, stating the name, amount of fee, kind of employment, and a separate receipt giving the name and address to which the employee is sent; when work is not obtained or accepted within one month, the full amount of the fee must be returned, if demand is made within thirty days, and this clause must be on the back of the receipt; women may not be sent to any places of bad repute; no false entries may be made; publishing any fraudulent notice or advertisement, giving false information, and making false promises to any one registering are prohibited; the license fee is $10 the first year, and $5 thereafter, with a$ 500 bond; the Commissioner of the Bureau of Statistics is responsible for the enforcement of this law.
By comparison with the preceding laws it will be seen that Connecticut covers some vital points, but also neglects others equally important.
Illinois
This is a new law, in operation since May, 1903, and its efficiency has scarcely been tested. It provides that all agencies shall first obtain a license, the fee for which is $50; the license must designate the street and number, and, with a copy of the law, be posted in the office; there must be a bond of$500 with approved sureties; a register must be kept, and the fee charged may not exceed $2, for which a receipt must be given; when a position is not obtained within one month, the fee must be refunded, if the demand is made within thirty days; no women may be sent to disreputable places; no fraudulent advertisements shall be published, or false information given; no agency shall be conducted in, or in connection with, any place where intoxicating liquors are sold; the Commissioner of Labor is entrusted with the enforcement of the law, and violations of its provisions constitute a misdemeanor, punishable by a fine not exceeding $100 and imprisonment not exceeding six months; all moneys received from fees and fines constitute a fund for enforcing the law.
While this law is an improvement over the previous one, it is powerless to remedy many abuses in Chicago, and has one or two unwise provisions, such as entrusting the enforcement to the superintendent of the free State agency, who thus inspects the books and working of all rival agencies. Cities the size of Chicago have enough agencies to require the entire time of a supervisor and inspectors.
Louisiana
This law requires permission from the mayor, before an agency is opened. The license fee is $25, and a $1000 bond is required that the agent will well and truly carry out the purpose for which the agency was established. Word from New Orleans states that the only part of this law which is enforced is the collection of the license fee.
Maine
A State law authorizes municipal authorities to grant licenses for $1 per year to suitable persons who give employment to domestic servants and other laborers; fees may not be kept unless employment of the kind sought is furnished; and copies of the law must be posted in every agency.
Massachusetts
The State law has some general provisions and the Boston law is a combination of these and of police regulations. This is the best working law in the country. Agencies are divided into two classes, the regulations for Class I. providing: Class I. includes every form of employee except coachmen, grooms, hostlers, longshoremen, lumbermen, seamstresses, cooks, scrub-women, laundresses, nurses (except professional), chambermaids, maids of all work, domestics, servants, agricultural and other laborers (except seamen), all of which are in the second class. The license fee is $25, and the employment fee for all positions paying under $4 weekly is seventy-five cents for women and $1for men, and for all over $4, twenty per cent. of the first week's wages for women and twenty-five per cent. for men. This fee is returnable within four days of demand, provided no employee or position is furnished within six days. If an employee fails to remain ten days or is discharged, a new employee or position must be furnished or three fifths of the fee refunded. Transportation must be refunded by the agency if no vacancy exists where the employee is sent. No office is compelled to return a fee to an employer who fails to keep an agreement. The provisions for Class II. differ in respect to fees. Fees must not exceed the amount of the first week's wages. If the employee is discharged, the agency cannot retain more than one day's pay for each week that the employee has remained. Provisions which are the same for both classes are: Fine for running an agency without a license, $10 daily; receipts must be given and the law conspicuously posted in the office; the name and designation as an agency must be on the door; a register of a pattern approved by the police must be kept and be open to inspection; licenses may be revoked for any good cause shown.
Whoever, as proprietor or keeper of an intelligence or employment office, either personally or through an agent or employee, sends any woman or girl to enter (as inmate or servant) any house of ill-fame, or other place resorted to for the purpose of prostitution, the character of which could have been ascertained by him on reasonable inquiry, for each offence, is punishable by a fine of not less than fifty dollars, nor more than two hundred dollars.
The success of the Boston law—and it is the only one which can be really so called—is due primarily to the frequent inspection, to the clear classification of offices, to the rapid disposal of complaints, and to the fact that it is based upon a knowledge of conditions. An investigation of agencies conducted by the Woman's Educational and Industrial Union led to the passage of this law. The avowed policy of the city is to reduce the number of agencies, and so decrease unfair competition, and it stands alone in permitting the agent to keep the fee when applicants break agreements. The criticisms of this law are that the fees allowed the second class are entirely disproportionate to those permitted the first class, and that the inspection is not adequate. In addition to the police, Boston needs women inspectors, for two thirds of the agencies are conducted by women for women, and many things escape perfunctory police inspection. The Boston law does demonstrate that private agencies can be regulated, and it shows unmistakably what are the essential features of such regulations. Even with its method of inspection, the evils have been reduced to a minimum, when compared with other cities. Every agent knows the law and fears it; and from our visit to agencies where we asked concessions, we learned it had a preventive value, and this should be a distinct encouragement to cities which hope to regulate private agencies.
Michigan
There is no State law, but one city, Detroit, has an ordinance which requires a license from the mayor; the fee is $15 per year, and the bond $500; one license covers but one place of business and may not be assigned without the written consent of the mayor; a register must be kept with the name and address of all applicants, and be open for inspection; fees may not exceed fifty cents for females and $1 for males and a receipt must be given; if no place is obtained within six days the fee must be refunded; when the salary is over $30, they may charge ten per cent. of the first month's salary; copies of the law in English and in German must be posted in the agency; penalties may be imposed for any improper device, deceit, misrepresentation, false pretence, or imposition, or for the use of the agency for any improper purpose. Differences are usually adjusted in the mayor's office, and the usual penalty is revocation of the license, unless the offence is a grave one, as of morals, then it is classed as a misdemeanor.
Minnesota
Every person hiring an employee must be given a written duplicate copy of the terms of the engagement, containing rate of wages, kind of service, etc., and any one failing to get employment according to the terms of the contract may recover damages; the license fee is $100 and the bond $10,000. In addition, St. Paul requires a license fee of $50, and a bond of $2000 from agencies for men; and a $25 fee and $500 bond from those for women; location on any premises where liquor is sold is prohibited.
It is worthy of notice that the agencies where fraud alone is possible require a larger bond than do those where both fraud and immorality are found.
Missouri
A license is required, and any one who agrees, promises, or advertises through press or letter to furnish employment for money or any other thing of value, and fails to do so within the time agreed upon, or a reasonable time, must return the fee. St. Louis imposes a license fee of (30 annually, and requires that the applicant for a license must have the endorsement of the police commissioners that he is a person of good moral character; if any one makes wilful misrepresentation, receives money for positions not secured, demands unusual or exorbitant fees, or is guilty of any deception whatsoever, the fine may be $50, and the license may be revoked; the mayor may also revoke the license for any good cause shown, but the proprietor must have a reasonable opportunity to defend himself.
New Jersey
The State law simply empowers cities to license, regulate, and fix the rate of compensation and to require bonds; it prohibits unlicensed persons from opening agencies, and enables cities to provide proper inspection and provisions. In accordance with this law, and as a result of the agitation in New York, Jersey City has an ordinance which went into effect July 1, 1904, which provides that applicants for licenses must furnish the chief of police with satisfactory evidence that they are persons of good moral character; a license is required, fee $5, and a bond of $200.When persons are sent where there is no employment the agency is liable for the car fare, and the license may be revoked if it is not returned; receipts are required, and upon failure to obtain help or positions the full fee must be refunded, and each agency must give a guarantee to furnish help or positions for three months. Two dollars is the fee allowed from employers and $1 from employees; the law must be printed on the back of the receipts; registers are required containing for the employee the name, age, nationality, where last employed, reasons for leaving, and references; the license must be posted in the office.
New York.
New York has a new State law which went into effect on May ist of the present year. The law was drafted by the Legislative Committee of the Woman's Municipal League of New York City, and is based upon the investigations as presented in this volume. The chairman of the committee of the League, representative New York City officials, reputable employment agents, and the author, co-operated in both the drafting and passage of the law. Because of the thorough investigation, and the co-operation of practical men engaged in the business, this law is considered a model employment agency law—a claim which only its actual working can demonstrate, and for which there has not yet been time. This law is given in full, for its suggestive value to other cities:
"Section 1. Definitions.—The term person when used in this act, means and includes any individual, company, association, or corporation, or their agents, and the term employment agency means and includes the business of keeping an intelligence office, employment bureau, or other agency or office for procuring work or employment for persons seeking employment where a fee or privilege is exacted, charged or received directly or indirectly for procuring or assisting to procure employment, work, or a situation of any kind, or for procuring or providing help for any person, whether such fee is collected from the applicant for employment or the applicant for help, excepting agencies for procuring employment for schoolteachers exclusively. The term fee as used in this act means money or a written promise to pay money.
"§ 2. License.—No person shall open, keep or carry on any such employment agency in the cities of the first and second class, unless every such person shall procure a license therefor from the mayor of the city in which such person intends to conduct such agency. Any person who shall open or conduct such an employment agency without first procuring said license shall be punishable by a fine not exceeding two hundred and fifty dollars, or, on failure to pay such fine, by imprisonment not exceeding thirty days. Such license shall be granted upon the payment to said mayor of a fee of twenty-five dollars annually for such employment agencies in cities of the first and second class. Every license shall contain the name of the person licensed, a designation of the city, street and number of the house in which the person licensed is authorized to carry on the said employment agency, and the number and date of such license. Such license shall not be valid to protect any other than the person to whom it is issued or any place other than that designated in the license unless consent is obtained from the mayor. No such agency shall be located in rooms used for living purposes, where boarders or lodgers are kept, or on premises where intoxicating liquors are sold, excepting cafes and restaurants in office buildings. If said licensed person shall conduct a lodging house for the unemployed, separate and apart from such agency, it shall be so designated in the license. The application for such license shall be filed not less than one month prior to the granting of said license and shall be accompanied by the affidavits of two persons who have known the applicant or the chief officers thereof, if a corporation for five years, stating that the said applicant is a person of good moral character. The license shall run to the first Tuesday of May next ensuing the date thereof and no longer unless sooner revoked by the mayor.
"§ 3. Bond.—The mayor of said city shall require such person to file with his application for a license a bond in due form to the people of the said city in the penal sum of one thousand dollars in cities of the first and second class, with two or more sufficient sureties, and conditioned that the obligor will not violate any of the duties, terms, conditions, provisions or requirements of this act. If any person shall be aggrieved by the misconduct of any such licensed person, and shall recover judgment against him therefor, such person may, after the return unsatisfied, either in whole or in part, of any execution issued upon said judgment, maintain an action in his own name upon the bond of said employment agent in any court having jurisdiction of the amount claimed provided such court shall, upon application made for the purpose, grant such leave to prosecute.
"§ 4. Register; references.—It shall be the duty of every such licensed person to keep a register, approved by the mayor, in which shall be entered, in the English language, the date of every application for employment; the name and address of the applicant; the amount of the fee received, and whenever possible, the names and addresses of former employers or persons to whom such applicant is known. Such licensed person shall also enter in a separate register approved by the mayor in the English language, the name and address of every applicant for help, the date of such application, the kind of help requested, the names of the persons sent, with the designation of the one employed, the amount of the fee received and the rate of wages agreed upon. The aforesaid registers of applicants for employment and for help shall be open during office hours to inspection by the mayor. No such licensed person, his agent or employees, shall make any false entry in such registers. It shall be the duty of every licensed person, whenever possible, to communicate orally or in writing with at least one of the persons mentioned as references for every applicant for work in private families, or employed in a fiduciary capacity, and the result of such investigation shall be kept on file in such agency.
"§ 5. Fees; receipts.—The fees charged applicants for employment as lumbermen, agricultural hands, coachmen, grooms, hostlers, seamstresses, cooks, waiters, waitresses, scrub-women, laundresses, maids, nurses (except professional) and all domestics and servants, unskilled workers and general laborers, shall not in any case exceed ten per centum of the first month's wages, and for all other applicants for employment, shall not exceed the amount of the first week's wages or salary or five per centum of the first year's salary. In case the applicant shall not accept or obtain help or employment, through such agency, then such licensed person shall on demand, repay the full amount of the said fee, allowing five days' time to determine the fact of the applicant's failure to obtain help or employment; except when it appears that the said licensed person has, in good faith, attempted to procure help or employment for said applicant, then he shall be entitled to retain of such fee paid, an amount not exceeding fifty cents. If an employee furnished fails to remain one week in the situation, a new employee shall be furnished or three-fifths of the fee returned, within four days of demand; if the employee is discharged within one week without said applicant's fault another position shall be furnished or three-fifths of the fee returned. Failure of said applicant for help to notify said licensed person that such help has been obtained through means other than said agency shall entitle said licensed person to retain or collect three-fifths of the said fee. It shall be the duty of such licensed person to give to every applicant for employment from whom a fee shall be received a receipt in which shall be stated, the name of said applicant, the date and amount of the fee, and the purpose for which it is paid, and to every applicant for help a receipt stating the name and address of said applicant, the date and amount of the fee, and the kind of help to be provided. Every such receipt shall have printed on the back thereof a copy of this section in the English language and in languages which persons commonly doing business with such office can understand. No such licensed person shall receive or accept any valuable thing or gift as a fee or in lieu thereof and no fee shall be accepted by such licensed person for any other purpose except as herein provided. No such licensed person shall divide fees with contractors or other employers to whom applicants for employment are sent. Every such licensed person shall give to each applicant for employment a card containing the name and address of such employment agency and the written name and address of the person to whom the applicant is sent for employment. Every such licensed person shall post in a conspicuous place in each room of such agency a plain and legible copy of this act, which shall be printed in languages, which persons commonly doing business with such office can understand.
"§ 6. Employment contract.—No such person shall induce or attempt to induce any employee to leave his employment with a view to obtaining other employment through such agency. Whenever such licensed person or any other acting for him, agrees to send one or more persons to work as contract laborers in any one place outside the city in which such agency is located, the said licensed person shall file with the mayor within five days after the contract is made, a statement containing the following items: name and address of the employer, name and address of the employee; nature of the work to be performed, hours of labor; wages offered, destination of the persons employed, and terms of transportation. A duplicate copy of this statement shall be given to the applicant for employment in a language which he is able to understand.
"§ 7. Character of employer; fraud. — No such licensed person shall send or cause to be sent any female help as servants or inmates to any questionable place or place of bad repute, house of illfame, or assignation house, or to any house or place of amusement kept for immoral purposes, the character of which such licensed person could have ascertained upon reasonable inquiry. No such licensed person shall knowingly permit questionable characters or procurers to frequent such agency. No such licensed person shall publish or cause to be published any false or fraudulent notice or advertisement; all advertisements of such employment agency by means of cards, circulars, or signs and in newspapers and other publications, and all letterheads, receipts, and blanks shall contain the name and address of such employment agency and no such licensed person shall give any false information, or make any false promise concerning employment to any applicant who shall register for employment or help.
"§ 8. Enforcement.—In cities of the first class the enforcement of this act shall be entrusted to a commissioner to be known as a commissioner of licenses, who shall be appointed by the mayor, and whose salary together with those of inspectors to be appointed by him shall be fixed by the board of estimate and apportionment. He shall appoint inspectors who shall make at least bimonthly visits to every such agency excepting agencies exclusively for procuring executive, clerical, and technical positions for men only, which shall be inspected on complaint made to said commissioner. Such inspectors shall see that all the provisions of this act are complied with, and shall have no other duties. Complaints against any such licensed person shall be made orally or in writing to the commissioner and notice of such complaints shall be made orally or otherwise as the commissioner may direct to said licensed person and upon such complaint a hearing shall be had before him within three days. Said commissioner shall keep a record of all such complaints and hearings. The said commissioner shall revoke any license for any good cause shown, but reasonable opportunity shall be given said licensed person to defend himself. Whenever for any cause such license is revoked, said commissioner shall not issue another license to said licensed person or his representative. In cities of the second class the duties of said commissioner may be performed by the mayor, or an officer appointed by him. Any violation of the provisions of this act shall constitute a misdemeanor punishable by a fine of not more than two hundred and fifty dollars or imprisonment for not more than one year, except as provided in section two, and the commissioner shall institute criminal proceedings for its enforcement before any court of competent jurisdiction."
For the enforcement of this law, New York City has created a special department, with offices apart from its other administrative work. A commissioner of licenses has been appointed, and he has a force of twenty inspectors, three of whom are women, appointed under civil service rules. There is a room where complaints are heard daily, and a law and complaint clerk investigates all complaints and reports of inspectors before they come before the commissioner, or are referred to the attorney for prosecution. Under this law, New York City has the most complete system and thorough methods, requiring as it does the services of twenty people, at a cost for the first year of $35,000. There are in greater New York 632 licensed employment agencies, and more than one hundred others will be brought under the new law.
This State law applies to Buffalo, Syracuse, Rochester, and other second-class cities, but its enforcement in them is by the mayor rather than through a separate department.
In its applicability to other cities there are one or two features which may seem undesirable. One is the high rate of fees allowed mercantile agencies, which appear disproportionate to the services rendered. This law authorizes what may result in a registration fee, for it permits the agency to retain fifty cents when it can show that it has in good faith attempted to fulfil its obligations. The new law requires from the agency elaborate records and printed material, office equipment, higher rents, more expensive advertising, greater care in placing employees, investigation of references, and limitations upon fees and where help may be sent, and for this there must be some provision if agencies are to conduct business at a profit. The object of the New York law is to enable every honest agent to conduct his business under fair conditions, so that his interest will be in its enforcement rather than in its evasion, and not to work hardship to any honest agent, no matter how small his business.
The methods of procedure by which this law was passed may interest others who are struggling with this problem. For two years the investigations were carried on without publication or comment. Then the bill was drafted. At the same time invitations were sent out to city officials and employment agents to meet and discuss the proposed bill; and upon request duplicate copies of all of the records and other evidence were sent to the mayor's office, and the facts were given to the press. These were of such a nature, and the proofs so indisputable, that public sympathy and interest were won for the proposed law. At these hearings employment agents were heard and alterations made, and the criticisms and suggestions of the various city commissioners received. One public hearing on the bill was given before it was sent to Albany. The result was, that though the committee had but a month to get it through the legislature, and it vitally affected some eight hundred agencies, there was no opposition at the Albany hearings, and only four votes against it in the Senate, and these represented Rochester agencies. No amendments were made, and the reputable agents are now united in two associations, each with a legislative committee to enforce the law and raise the standards of the entire business. This success seems primarily due to two things: an indisputable knowledge of conditions; and, second, the willingness to co-operate, and find out under what regulations the agents themselves could work most honestly, and to grant any fair demands. The provisions of the New York law are a tribute to the fairness on both sides, for where one side made concessions on fees, so that agents could live by honest means, the other side had to yield on such vital points as the location in saloons and living rooms, immoral practices, deceptions, and granted the many stringent clauses necessary to prevent fraud, and which meant much expense to them.
Those interested in passing the law do not consider that it alone will remedy the conditions in New York City, and there exist a permanent committee which is interested in its enforcement; another which will investigate any hardships caused by the new law; an organization which is starting model employment agencies; another which is studying conditions closely allied to employment agencies; and a union of the best agencies. All of these are cooperating with the new commissioner and his force. These movements have been previously described under remedies.
Ohio
This State has a new State law, passed this spring, which requires a license fee of from $50 to $100, and a bond of $500. Charitable agencies are excluded. The Commissioner of Labor has the enforcement of this law. Agencies are to be investigated before licenses are issued.
Pennsylvania
The State law requires a license, which, with the schedule of fees permitted by law, must be publicly exposed in the agency; the license may be revoked or a fine not exceeding $200 imposed for giving false information or for making false promises. The fee is $50 annually.
Since all of the abuses previously outlined exist in Philadelphia, this law is clearly inadequate.
Rhode Island
The State law simply empowers cities to regulate agencies, and leaves it to the town councils to issue licenses, to determine the amount of fees and the grounds for revocation of licenses. The Providence ordinance illustrates what has been done under this law. It requires that a register be kept, containing the name and address of the employer and employee and the amount of the fee paid; office hours are limited from 8 A.M.to 8 P.M.; fees must not exceed $1 each for employer and employee; if a position is not found within six days, the fee must be refunded; the agent shall not induce any person to leave the employment in which he has been placed; the license may be revoked for this or for any other good cause shown; and the license fee is $20. This is the only law, except that of New York, which covers the practice of removing employees after they are placed, in order to secure an additional fee.
Virginia
The law requires that the judge of corporation or county courts must certify, from personal knowledge or from evidence of a credible witness taken under oath before the court, that the applicant is a person of good character and honest demeanor; the license fee is $50. Cities have not required much beyond this, for Richmond demands only a license fee of from $30 to $50.
Washington
There is no State law, but Seattle, under the civil service commission, has an excellent ordinance. It provides that applications for licenses must be in writing, state the place of business, and contain the endorsement of three responsible and respectable citizens, to the effect that the applicant is of good moral character and thoroughly responsible; the license may be issued to but one individual, who shall not be a saloon-keeper, and no agency shall be in a saloon or in immediately adjoining rooms in which liquor is sold; it requires a bond of () 500$ ; that registers shall be kept, in one of which shall be entered in English the name, address, and nature of the employment, and, in another, all facts showing the dealings with the applicant; the fee shall not exceed $1 for all positions paying between $50 and $75; and for all wages above this, the arrangement is to be left to the parties concerned; board may not be computed upon a basis higher than $20 per month; fees shall be accepted only at the time positions are furnished, and no agent shall pay to the employer any fee or valuable thing for the privilege of furnishing help, nor charge a fee for furnishing employment for any work or contract in which he is interested; licenses are not transferable without permission; the license fee is $250 annually, and for agencies furnishing women exclusively, $100 ; the labor commissioner is empowered to enforce the law, but the mayor may revoke a license for any good cause, after the holder has had a reasonable opportunity to defend himself. This law admirably covers some evils of contract labor, but in others may work hardships.
Wisconsin
The State law requires a license and it must designate the place and is not transferable without consent; the employer and employee must have duplicate copies of the terms of the contract, including length of time, rate of wages, etc., together with the name and address of the employer; failure to secure employment by the terms of the contract, by reason of fraud or misrepresentation, is sufficient cause for action; the license fee is $10 and the bond required is $1000. This law does not apply to agencies conducted by women, for securing employment for women only.
Free Agencies
Undoubtedly one explanation of the small number of States which regulate employment agencies is the belief that free State agencies act as a regulation. Ohio, Maryland, Nebraska, Missouri, Montana, and Kansas consider this sufficient legislation. Colorado has abolished its free public agency and passed a stringent employment agency law; and Washington, Connecticut, New York, and Illinois have seen the necessity for effective legislation, in addition to these free agencies. The methods of these free agencies have been previously discussed, and the reasons have been given for their inefficiency as regulators of private agencies.
Methods of Legislation
From this brief digest of existing laws it is seen that there are four distinct methods: The first is where the State regulates the entire system, both enacting and enforcing the law, as in Illinois, where the Commissioner of Labor and his deputy, the superintendent of the free State agency, interpret and enforce the law. The arguments in favor of State regulation are: that cities will thus have uniform provisions; that the whole matter is under one responsible head; that, as this is primarily a labor problem, it falls within the jurisdiction of a State labor commission, and that under such a commission, it is less subject to graft and political influence. The arguments against it are, that the Labor Commission has charge of free public agencies, which are competitive, and the knowledge gained through its inspection can be used for its advancement; that the employment agency is a city institution and as such should be regulated by a city department; and that a State commission is a foreign element entering into the control of a large number of city enterprises. If this State method has been given a fair trial in Illinois, the conditions found in Chicago are a strong argument against it.
The second method is where the State passes a general law in the nature of an empowering act, but leaves all of the specific regulations to each city. The New Jersey and Rhode Island laws are such, both Jersey City and Providence having passed such ordinances. The advantage is that the State has an interest in the matter and still does not violate home-rule principles. The chief objection is that these State laws are not sufficiently definite and mandatory, and that cities may not take up the subject at all.
The third method is where the State makes all of the regulations, but leaves the actual enforcement to the city. This is the New York and the Massachusetts law. The latter differs from the former in that the State is supplemented by police rules, but the principle is essentially the same. This method insures the interest of the State, gives the law more permanency, and makes it possible to utilize all of the city machinery in its enforcement. It also vests some discretionary power in the chief executive. The chief objection is, that this question affects the State as well as the city, but it is also interstate, as these agencies send employees all over the country, and the argument is as good for national as for State control. Agencies are best controlled at the point from which they operate, and that is invariably the city. No law should make it possible for the city officials and administration to know nothing of the location, conditions, and methods of its employment agencies, but this is precisely the result in Chicago. Then, again, city organizations, departments, and institutions are the ones to which reports of abuses naturally come, and these co-operate more readily with a city than with a State department, especially where State politics differ from those of the city, as in New York and Chicago.
The fourth method is where cities, independent of the State, pass their own regulations, as in Detroit, Michigan, and Seattle, Washington. These laws are less permanent, are likely to change with the party in power, and depend much upon the administration for proper enforcement, but they are in both effective.
Some States and cities may not find any one of these laws adapted to their needs, and for these the following suggestions are made of what are essential for any law which seeks to regulate private agencies: A license fee, not exceeding $50; for this should never be large enough to make it an object of graft. A bond not exceeding $2000, and preferably $1000, to protect the public from "one-man frauds." Saloons, living rooms, tenements, and gambling-places are undesirable localities. Every city having over twenty-five offices has enough work to keep one inspector busy. Inspection, careful and regular, is absolutely essential to any efficient employment-agency law. Preliminary requirements, such as knowledge of proposed place of business, character of applicant, etc., are essential to prevent frauds. Regulation of fees is desirable. Registration fees are the open door to fraud and should be abolished. A maximum fee of $3 for employers and $2 for employees, or ten per cent. of the first month's wages in intelligence offices, and ten per cent. of the first month or fifty per cent. of the first week for commercial agencies, seems fair. Fees should always be high enough to enable the agent to live without resorting to illegal means. There should always be adequate provision for refunding fees, but upon conditions fair to the agent as well as to the applicant. Laws which compel agents to return fees, when they have rendered services, or when applicants have broken their contracts, by their very injustice make underhand methods necessary. Fees should be refunded at the end of a week in intelligence offices, and at the end of one month in commercial agencies, if no positions are offered. All fees, except money, should be prohibited. Requirements for registries and receipts, and posting the law in the office, are essential. Emphatic and comprehensive legislation is required to cover fraudulent advertising, false statements and promises, and immoral practices. There should be a convenient place for complaints, and these should be heard at once, so that the time of the employee could be saved. So far as possible the employee should have a copy of the agreement which he makes in the office.
There are peculiar conditions in each city which may need special provisions, but in general the conditions of all agencies in all cities would be improved by such regulations as the preceding.