Minnesota Session Laws - 2005, Regular Session

                            CHAPTER 134-H.F.No. 742 
                  An act relating to employment; providing exemptions 
                  from employment agency licensing requirements; 
                  prohibiting certain fee payments; extending a pilot 
                  project; amending Minnesota Statutes 2004, section 
                  184.22, by adding subdivisions; Laws 2004, chapter 
                  188, section 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 184.22, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [EXEMPTIONS.] (a) Except as otherwise provided, 
        sections 184.21 to 184.41 do not apply to any person, firm, 
        corporation, partnership, or association engaged in the business 
        of management consulting, management search consulting, or 
        personnel consulting, hereafter "search firm," if: 
           (1) the search firm is retained by, acts on behalf of, and 
        is only compensated by the employer, pursuant to a written or 
        oral agreement specifying the position to by filled; 
           (2) in no instance will any individual candidate who is 
        identified, appraised, or recommended by the search firm for 
        employment become liable in whole or in part to pay a fee of any 
        kind, directly or indirectly, on account of any service 
        performed by the search firm; 
           (3) in no instance does the search firm or its agents 
        solicit, persuade, or induce any individual to terminate 
        employment with an employer with whom the search firm has placed 
        that individual; and 
           (4) the search firm does not carry on any other activity 
        that comes within the definition of employment agency as defined 
        in section 184.21, subdivision 2. 
           (b) If the commissioner at any time has reason to believe 
        that the search firm has not conducted its business in a manner 
        consistent with the conditions in paragraph (a), clauses (1) to 
        (4), the commissioner may inspect the relevant records of the 
        search firm for the purpose of confirming whether the search 
        firm has maintained its exempt status during the year.  If it is 
        determined, either by written admission by the search firm or by 
        a finding of fact in a court of law or by a hearing officer 
        pursuant to chapter 14, that any of the four conditions in 
        paragraph (a) were not met, the search firm shall be considered 
        an employment agency and be subject to sections 184.21 to 
        184.41.  If an employment agency offers services which are the 
        same or similar to those offered by a search firm, or if a 
        search firm offers services which are the same or similar to 
        those offered by an employment agency, the person or entity 
        offering these combined employment agency and search firm 
        services shall identify itself to the public by displaying the 
        name filed with the commissioner as a licensed employment 
        agency; provided, that no search firm may offer licensed 
        employment agency services at the same location. 
           Sec. 2.  Minnesota Statutes 2004, section 184.22, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [FEE PAYMENT PROHIBITED.] No employer may require 
        any job candidate placed with the employer by a search firm to 
        pay, directly or indirectly, all or part of the search firm's 
        fee. 
           Sec. 3.  Laws 2004, chapter 188, section 1, is amended to 
        read: 
           Section 1.  [PILOT PROJECT.] 
           The commissioner of employment and economic development 
        shall conduct an extended employment pilot project to study an 
        industrial model for employment for individuals with severe 
        disabilities in Thief River Falls, Minnesota. 
           Employment is to be provided by Custom Products, a division 
        of Occupational Development Center.  During the pilot, 
        employment outcomes for individuals with severe disabilities 
        will be assumed to be community employment as defined under 
        Minnesota Rules, part 3300.2005.  The pilot project will begin 
        July 1, 2004, and end June 30, 2005 2006.  Evaluation of the 
        pilot project must be completed by October 1, 2005 2006, by the 
        commissioner. 
           The pilot project must maintain a minimum ratio of 60 
        percent of nondisabled persons, must pay minimum wages or better 
        to all employees with severe disabilities, and must provide them 
        a level of benefits equal to those provided to nondisabled 
        employees.  All work teams must be integrated. 
           The pilot project must provide the extended employment 
        program with useful information to clarify the distinction 
        between center-based and community employment subprograms.  The 
        commissioner shall consider the findings of the pilot project in 
        adopting rules. 
           Presented to the governor May 31, 2005 
           Signed by the governor June 2, 2005, 4:50 p.m.