Important Announcements for Licensed Commercial Employment Agencies and Principal Agents

Changes to Chapter 373, Hawaii Revised Statutes ("HRS"), relating to Commercial Employment Agencies, were approved by the Governor on April 12, 2002. Act 22, SLH 2002, makes amendments to the law which repeal unnecessary regulatory requirements, clarify licensing requirements, and align the program with current administrative practices for regulatory licenses.


Changes to Chapter 373, Hawaii Revised Statutes ("HRS"), relating to Commercial Employment Agencies, were approved by the Governor on April 12, 2002. Act 22, SLH 2002, makes amendments to the law which repeal unnecessary regulatory requirements, clarify licensing requirements, and align the program with current administrative practices for regulatory licenses.

The main provisions of Act 22 are:

  • Only commercial employment agencies that collect fees from applicants are required to post the $5000 statutory bond
    This change promotes regulatory effectiveness by requiring only those agencies that collect fees from applicants (consumers) to post a bond, since only these agencies may pose a risk for consumers;

  • Licensure of branch offices is repealed
    The Act reduces regulatory and financial burdens on businesses by repealing licensure of branch offices without compromising consumer protection, since licensure of branch offices offers no enhanced regulatory benefit to consumers, and since amended language clarifying a principal agent's supervision responsibilities over the agency's employees will preserve consumer protection;

  • Annual filing of Placement Fee Schedule is repealed
    The repeal of this requirement reduces the regulatory burden on the licensee. It is sufficient to make an initial filing followed by updated filings as needed;

  • No business shall be conducted from a home, apartment, hotel room, or other place that may be considered not in the public interest
    Act 22 codifies this practice currently in the administrative rules and emphasizes its importance. This statutory amendment provides a more direct authority to achieve the desired result.

  • An applicant's resume is an extension of the applicant
    The Act clarifies that, as such, prohibitions against agencies sending an applicant for employment without a bona fide job order from a prospective employer likewise apply to the applicant's resume. Modern technology, including broadcast faxes and email make this clarification necessary to protect applicant consumers from having a resume sent to employers via broadcast emails or faxes without their knowledge and having to pay subsequent fees to the employment agency for a job the applicant believed was obtained by their own means;

  • Financial integrity, honesty, truthfulness, and fair dealing requirement
    Act 22 provides more specific legislative authorization by codifying long-standing licensing policies that applicants for licensure possess a reputation for honesty, truthfulness, financial integrity, and fair dealing, and shall not have been convicted of a felony directly related to the operation of a commercial employment agency unless the conviction has been annulled or expunged; and

  • 60 days to replace Principal Agent without jeopardizing agency license
    The Act provides a more flexible timeframe for agencies when changing principal agents. The 60-day window will facilitate uninterrupted service by allowing agencies to remain open for business during the interim transition upon the death or dissociation of its principal agent.


FOR COMPLETE INFORMATION ON THE CHANGES TO CHAPTER 373, HRS,
CHECK THE PROGRAM'S WEBSITE:

www.hawaii.gov/dcca/areas/pvl/programs/employment/


or CALL THE PROGRAM'S OFFICE AT: (808) 586-2696

FOR THE COMPLETE TEXT OF ACT 22, CHECK THE STATE LEGISLATURE'S WEBSITE:

www.capitol.hawaii.gov
Select "Status and Documents"; request the text for "SB2734".


IN ADDITION,
TWO NEW ONLINE SERVICES ARE AVAILABLE FROM THE DEPARTMENT
:

http://pahoehoe.ehawaii.gov/pvl Search for professional and vocational licenses

http://pahoehoe.ehawaii.gov/cms Search for business and licensee complaints history

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