CHAPTER 1. REGULATION OF EMPLOYMENT SERVICES

IC 25-16
    ARTICLE 16. EMPLOYMENT SERVICES

IC 25-16-1
    Chapter 1. Regulation of Employment Services

IC 25-16-1-1
Necessity of license; issuance; display
    Sec. 1. A person, firm, limited liability company, or corporationmay not open, operate, or maintain an employment agency in thisstate without first obtaining a license for that purpose from thedepartment. Each license shall contain a designation of the city ortown, together with the name of the street and the number of thebuilding where the licensed person, firm, limited liability company,or corporation conducts or is to conduct the employment agency. Thelicense, together with a copy of this law, shall be posted in aconspicuous place in each and every place or office where the agencydoes business. No agency shall write, print, publish, paint, or displayin any way any sign, card, or advertisement in any way similar to thename "Indiana Free Employment Service". All advertisements andstatements, window signs, door signs, and all literature used,displayed or circulated by any such agency shall contain the regularlylicensed name of the agency. The location of an agency may not bechanged without the written consent of the department of staterevenue. A license issued under this chapter is not transferable.
(Formerly: Acts 1927, c.25, s.1.) As amended by Acts 1982, P.L.154,SEC.57; P.L.35-1983, SEC.2; P.L.8-1993, SEC.382.

IC 25-16-1-2
Bond; revocation of license
    Sec. 2. (a) The department of state revenue shall require each andevery applicant for a license to execute to the state of Indiana a bondin the penal sum of one thousand dollars ($1,000), with a suretycompany, or with two (2) solvent resident freeholders, conditionedthat the obligor will not violate any of the duties, terms, conditions,or provisions of this chapter, and the bond so executed, shall beapproved by the department.
    (b) The department is hereby authorized to cause an action to bebrought on such bond, in the name of the state of Indiana, for anyviolation of any of the conditions of such bond, and may, after ahearing, revoke such license, whenever, in its judgment, the licenseehas violated any of the provisions of this chapter, or has beenconvicted of the violation of any criminal law of this or any otherstate, subject to an appeal under IC 4-21.5 by the person, firm,limited liability company, or corporation whose license is sorevoked.
    (c) It is hereby made the duty of the attorney general to prosecuteany action brought by the department of state revenue in such cases.
(Formerly: Acts 1927, c.25, s.2.) As amended by Acts 1982, P.L.154,SEC.58; P.L.35-1983, SEC.3; P.L.7-1987, SEC.121; P.L.8-1993,

SEC.383.

IC 25-16-1-3
License fee
    Sec. 3. A fee of one hundred fifty dollars ($150) shall be paidannually for each license granted under the provisions of thischapter.
(Formerly: Acts 1927, c.25, s.3.) As amended by Acts 1981, P.L.223,SEC.2.

IC 25-16-1-4
Duration of license; renewal; notice of refusal to renew
    Sec. 4. Every license, unless previously revoked, shall remain inforce until one (1) year after its issue, and every employment agencyshall, upon payment of the amount of the license fee required, andthe filing of a new bond, have issued to it a license for the ensuingyear, unless the department of state revenue then gives written noticeto the agency:
        (1) that it intends to refuse to renew the license for reasonsstated in this chapter; and
        (2) that the license will remain in effect pending an appeal, ifany, under IC 4-21.5.
(Formerly: Acts 1927, c.25, s.4.) As amended by P.L.35-1983,SEC.4; P.L.7-1987, SEC.122.

IC 25-16-1-5
Application for license
    Sec. 5. Every applicant for a license shall file with the departmentof state revenue a written application, stating the name and addressof the applicant, the name of the street and the number of thebuilding in which the employment agency is to be maintained, thename of the person who is to have the general management of theoffice, the name under which the business of the office is to becarried on, and the business or occupation engaged in by theapplicant for at least five (5) years immediately preceding the date ofthe application. Such applicant shall give as reference the names andaddresses of at least three (3) persons of reputed business orprofessional integrity, located in the city or town where suchapplicant intends to conduct his business. The applicant shall berejected if the department of state revenue finds that the applicant isnot of good moral or business integrity, or when the premises forconducting the business of an employment agent are found uponinvestigation to be unfit for such use, or if there is any good andsufficient reason within the meaning and purpose of this chapter forrejecting such application. No license will be granted to any personwhose license has been revoked within a period of three (3) yearsnext preceding the date of such application. Each application shall begranted or refused within thirty (30) days from date of filing.
(Formerly: Acts 1927, c.25, s.5.) As amended by Acts 1982, P.L.154,SEC.59.
IC 25-16-1-6
Filing fee schedule, forms, and contracts; changes
    Sec. 6. (a) Each applicant for a license shall file with hisapplication, a schedule of fees, charges, and commissions which heexpects to charge and collect for his service, together with a copy ofall forms and contracts to be used in the operation of the agency.
    (b) Such schedule of fees, charges, and commissions maythereafter be changed by filing an amended or supplemental scheduleshowing such fees, charges, and commissions with the department ofstate revenue at least thirty (30) days before the date provided forsame to become effective. Any change in forms and contracts mustalso be filed with the department of state revenue at least thirty (30)days before the date provided for same to become effective.
    (c) Schedule of fees, charges, and commissions to be chargedshall be posted in a conspicuous place in the office of such agency.It shall be unlawful for any employment agent to charge, demand,collect, or receive a greater compensation for any service performedby him than is specified in such schedule filed with the departmentof state revenue.
(Formerly: Acts 1927, c.25, s.6.) As amended by P.L.28-1988,SEC.74.

IC 25-16-1-7
Recovery of fees by job applicant
    Sec. 7. No agency shall send out any applicant, or collect any feefrom any applicant without first having obtained a bona fide order forsuch employment. No charge nor advance fee of any kind shall beaccepted until a position has been secured for the applicant by theagency or through the efforts of the agency. If any person fails,through no fault of his own, to obtain employment from the employerto whom he has been referred by an employment agent, or if, afterhaving been engaged by an employer, such person is not permittedby said employer to enter upon the employment he was sent toperform, the whole amount paid by such person to the employmentagent as a fee shall be refunded to him on demand. If such applicantshall have obtained a position or employment through such licensedagency, and shall voluntarily leave or abandon such position oremployment, and without reasonable cause, he shall be entitled toreceive no part of the fee paid by the applicant to the agency.
(Formerly: Acts 1927, c.25, s.7.)

IC 25-16-1-8
Receipts for payments made by job applicants; contents
    Sec. 8. (a) For all payments made by any applicant foremployment to any employment agency, there shall be given areceipt, on the back of which shall be printed in readable form in theEnglish language: "No charge nor advance fee of any kind shall beaccepted until a position has been secured for the applicant by theagency or through the efforts of the agency. In case any employerfails to accept an applicant or person obtained by any agency acting

as the agent of such employer, then the licensed agency shall repayand return to said applicant all of any payments made by saidapplicant to said agency.".
    (b) On the front of such receipt there shall be printed the words,"Read the law on the back of the receipt.". All receipts shall alsohave printed on the back thereof: "This agency is licensed by thedepartment of state revenue, State Capitol, Indianapolis, Indiana.".
(Formerly: Acts 1927, c.25, s.8.) As amended by P.L.28-1988,SEC.75.

IC 25-16-1-9
Employment agency records; maintenance; inspection
    Sec. 9. (a) Every licensed agency shall keep a record for two (2)years of:
        (1) every person referred or placed for employment, includingthe date the person was referred or placed in employment, theperson's name, address, age, nativity, sex, color, and trade,occupation, or profession;
        (2) the amount of the fee received and rate of wages agreedupon; and
        (3) the name and address of the person, firm, limited liabilitycompany, or corporation with whom any of the applicants havebeen placed.
    (b) The department of revenue may inspect the records of anagency at any time.
(Formerly: Acts 1927, c.25, s.9.) As amended by P.L.35-1983,SEC.5; P.L.8-1993, SEC.384.

IC 25-16-1-10
Disposition of fees received
    Sec. 10. All fees received by the department of state revenueunder this chapter shall be paid into the state treasury by thedepartment.
(Formerly: Acts 1927, c.25, s.10.) As amended by Acts 1979, P.L.17,SEC.45; P.L.28-1988, SEC.76.

IC 25-16-1-11
Employment agency defined; exceptions
    Sec. 11. (a) The term "employment agency", as used in thischapter, means any person, firm, limited liability company, orcorporation, who for hire or with a view to profit, shall undertake oroffer to secure employment or help through the medium of card,circular, pamphlet, or any medium whatsoever, or through thedisplay of a sign or bulletin, offer to secure employment or help, orgive information as to where employment or help may be secured.
    (b) Nothing in this chapter shall apply to the business andvocation of babysitting.
    (c) Nothing in this chapter shall apply to charitable andbenevolent organizations and associations approved by the divisionof family resources. All charitable and benevolent organizations and

associations approved by the division of family resources shall,before being authorized to conduct such employment agency ordepartment, secure a permit from the department of state revenue byfiling an application giving such information as may be required. Nocharge shall be made for the issuance of such permit, which may berevoked on the same terms as a license is revocable.
(Formerly: Acts 1927, c.25, s.11; Acts 1951, c.292, s.1.) As amendedby P.L.28-1988, SEC.77; P.L.2-1992, SEC.774; P.L.8-1993,SEC.385; P.L.145-2006, SEC.160.

IC 25-16-1-12
Referring job applicant to place where strike or lockout exists
    Sec. 12. No employment agency shall refer any applicant to anyplace for a position where a strike or lockout is known to existwithout notifying the applicant of such condition.
(Formerly: Acts 1927, c.25, s.12.)

IC 25-16-1-13
Fee splitting with employer
    Sec. 13. No person conducting or connected with or acting asagent for an employment agency shall make any arrangements withany employer or his agents or employees to secure the discharge ofany employee; nor shall any employment agent or any one in hisemploy or representing him divide or offer to divide or share, directlyor indirectly, any fee, charge or compensation received from anyemployee with any employer or person in any way connected withthe business thereof.
(Formerly: Acts 1927, c.25, s.13.)

IC 25-16-1-14
Sending job applicant to house of ill fame or assignation; securingdischarge of employee
    Sec. 14. It shall be unlawful for any employment agency to sendany person to any place of bad repute, house of ill fame orassignation, or place of amusement kept for immoral purposes, orany other place (known) to be of questionable character or ill repute,or for the purpose of securing a position for any applicants therein.It shall be unlawful for any employment agency to circulate, publish,record or issue any report or information to cause the discharge ofany person employed in any legitimate service.
(Formerly: Acts 1927, c.25, s.14.)

IC 25-16-1-15
Refund of fee in event of nonexistence of job opening
    Sec. 15. If it shall appear that no employment of the kind appliedfor existed at the place where any applicant was directed, saidlicensed agency shall refund to such applicant, within five (5) daysafter demand, any sum paid by said applicant for transportation andother expense in going to and returning from said place and all feespaid by said applicant to such agency.(Formerly: Acts 1927, c.25, s.15.)

IC 25-16-1-16
False representations
    Sec. 16. No agency shall publish, or cause to be published, orcirculate any false or fraudulent or misleading notice, advertisement,or statement; or give any false information or make any falserepresentation or promise concerning work or employment or help,to any one who shall register for help or employment, and no suchagency shall make any false entry in any book, record or register keptby it in connection with its business.
(Formerly: Acts 1927, c.25, s.16.)

IC 25-16-1-17
Inspection; power of arrest
    Sec. 17. For the purpose of enforcing this chapter and the rulesand regulations issued thereunder, the department of state revenue,or any of its duly authorized agents, may enter any employmentagency or place of business of any employment agent and inspect theregister, books, cards or other records of such employment agent.The department or any of its duly authorized agents, shall have thepower and authority of sheriffs, and other peace officers, to makearrests for violations of the provisions of this chapter and to serveany process or notice throughout the state.
(Formerly: Acts 1927, c.25, s.17.) As amended by Acts 1982,P.L.154, SEC.60.

IC 25-16-1-18
Violations; enforcement of chapter
    Sec. 18. A person who violates this chapter commits a Class Bmisdemeanor. The Indiana department of state revenue shall enforcethis chapter and institute criminal or civil proceedings wheneverinformed of any violation of it. Upon instituting proceedings, thename of the department shall be entered upon the docket, and uponconviction a fee of ten dollars ($10.00) shall be allowed in favor ofthe department, which fee, when collected, shall be accounted for asother money received by the department under this chapter. Thedepartment may promulgate rules and regulations as necessary forthe supervision of employment agencies.
(Formerly: Acts 1927, c.25, s.18.) As amended by Acts 1978, P.L.2,SEC.2533.