§ 95-47.4. Contracts; contents; approval; tying contracts forbidden. - North Carolina Statutes

§95‑47.4.  Contracts; contents; approval; tying contracts forbidden.

(a)        A contract betweena private personnel service and an applicant shall be in writing, labeled as acontract, physically separate from any application and made in duplicate. Onecopy shall be given to the applicant and the other shall be kept by the privatepersonnel service as required by G.S. 95‑47.5(2).

(b)        Any contract thatobligates an applicant to pay a fee to the private personnel service shallinclude:

(1)        The name, addressand telephone number of the private personnel service;

(2)        The name of theapplicant;

(3)        The date thecontract was signed;

(4)        A clear schedule ofthe fees to be charged to the applicant at various salary levels;

(5)        A clear explanationof when the applicant becomes obligated to pay a fee;

(6)        A clear refundpolicy (or no refund policy) that conforms to the requirements of G.S. 95‑47.4(f)and (g);

(7)        If the applicant isobligated whether or not the applicant accepts employment, a clear explanationof the services provided and a statement that the private personnel servicedoes not guarantee that the applicant will obtain employment as a result of itsservices;

(8)        A statement, in atype size no smaller than nine point, directly above the place for the applicant'ssignature, that reads as follows: "I have read and received a copy of thisCONTRACT, which I understand makes me legally obligated to pay a fee underconditions outlined above." In the preceding statement the word"CONTRACT" and no others shall be in all capitals; and

(9)        A statement that theprivate personnel service is licensed and regulated by the Commissioner and theaddress at which a copy of laws and regulations governing private personnelservices may be obtained.

(c)        A copy of eachcontract form to be used with applicants shall be filed with the Commissioner.Until the private personnel service receives written notification from theCommissioner that the form conforms to the requirements of this Article andregulations adopted hereunder, it shall not be used with applicants.

(d)        A private personnelservice shall not require an applicant to sign a contract with the privatepersonnel service before the applicant has had an opportunity to read thecontract and discuss the contract with an employee of the personnel agency whoregularly arranges contacts and assists in negotiations between employers andapplicants. A private personnel service shall not coerce an applicant intosigning a contract by applying or using duress, undue influence, fraud or misrepresentationsufficient to invalidate the contract under North Carolina law.

(e)        Any contract thatobligates an applicant to pay a fee to the private personnel service when theapplicant accepts employment shall be physically separate from any contract thatobligates an applicant to pay a fee whether or not the applicant acceptsemployment. A private personnel service shall not require an applicant to signone contract as a prerequisite to signing another contract or to pay a fee as aprerequisite to signing a contract. Express violations of this subsection arethe following:

(1)        Refusal to allow anapplicant to contract for counseling, job information or resume writingservices, if the applicant does not agree to pay an additional fee uponacceptance of employment; and

(2)        Refusal to allow anapplicant to contract for services which obligate the applicant only uponacceptance of employment, if the applicant does not agree to pay a registrationfee or to contract for counseling, resume writing or other services.

(f)         If a privatepersonnel service has a refund policy, included on each contract that obligatesan applicant upon acceptance of employment will be a statement defining:

(1)        The length of theperiod of time covered by the refund policy;

(2)        The exact manner ofcomputing the refund so that the amount of refund due the applicant will beclear;

(3)        The conditions underwhich a refund becomes due to the applicant. The conditions of the refund, ifother than unconditional policy is used, shall contain a definition of thereasons for which a refund will not be made. A refund will not be denied exceptfor a reason so stated in the definition of the contract;

(4)        A personnel serviceshall abide by the refund policy stated on its contract by promptly paying to applicantsany refund due under the terms of the contract.

(g)        If a privatepersonnel service has no refund policy, the private personnel service shallinclude on each contract that obligates an applicant upon acceptance ofemployment, in a type size no smaller than nine point, a statement that readsas follows:

"__________ (name ofprivate personnel service) will make NO REFUND under any circumstances of feespaid by the applicant." In the preceding statement the words NO REFUND andno others shall be in all capitals.

(h)        If a privatepersonnel service places an applicant in a position of employment, thecompensation of which is based, in whole or in part, on commission, the privatepersonnel service shall:

(1)        Have a written joborder from the employer that includes the anticipated earnings upon which theprivate personnel service may base its fee, or

(2)        In lieu of thewritten job order required by subdivision (1) of this subsection, have a policyof providing the same fee reimbursement as may be available to applicants fromemployers under the provisions of G.S. 95‑47.3A.

In no case may the applicantcollect the same reimbursement from both the employer and the private personnelservice. When the private personnel service elects to obtain the written job orderfrom the employer and not have its own reimbursement policy as described insubdivision (2) of this subsection, the private personnel service shall explainto the applicant and the employer how the fee for the placement is calculated,and shall inform in writing both the applicant and the employer of theprovisions of G.S. 95‑47.3A governing fee refunds from employers. (1979,c. 780, s. 1; 1991 (Reg. Sess., 1992), c. 970, s. 2; 1993, c. 202, s. 1; 1993(Reg. Sess., 1994), c. 769, s. 29(a).)