SECTION 46N. Contract between prospective employee and agency

An employment agency other than one recruiting domestic employees shall contract in writing with the applicant (employee) for services in securing employment for the payment by the applicant of a service fee, in an amount mutually agreed upon between the applicant and such employment agency, and shall file with the commissioner for approval a sample copy of the agreement to be entered into between the applicant and the employment agency. The licensee or his authorized representative shall verbally make clear to the applicant the terms and conditions of the contract, with particular emphasis upon the fee to be paid for services to be rendered. Every applicant shall be given a copy of the contract he has entered into or is to enter into with the employment agency, and such contract shall carry the statement

''I have thoroughly read my contract with (Name of agency) and accept its terms.'' (Signature of Applicant)

In addition to the above, the following schedule ranging from $55 a week to $200 a week must be reproduced on cards or paper, the size of which should allow for legible reading. Each applicant must be given a copy complete with service charges indicated beside the weekly salary and a copy signed by the applicant must be retained by the employment agency.

The contract fee must be based only upon the original wage or salary at which the applicant was hired.

Where employment is temporary, the employment agency shall be entitled to an amount equivalent to ten per cent of the gross weekly wages paid or fraction thereof, but in no case where employment is temporary shall a fee be charged in excess of the fee for permanent employment.

Permanent employment shall be defined as employment which in itself is good for ten weeks or more. Temporary employment is employment which in itself is good for less than ten weeks.

When a contract entered into between the employment agency and the applicant for employment clearly stipulates that voluntary resignation from employment or acceptance of employment and failure to report for work by the applicant does not relieve the applicant from paying to the employment agency the same fee he would have paid had he reported for duty or remained in employment for a period of ten weeks or more, then the employment agency shall be entitled to collect the full service fee, provided the applicant's failure to report for duty or his voluntary resignation is not occasioned by extenuating circumstances. Any question as to what constitutes ''extenuating circumstance'' shall be decided by the commissioner. Acceptance of other employment shall not fall within the meaning of ''extenuating circumstances''. Any employee supplied by an employment agency shall be paid at a rate not less than the applicable minimum wage or the applicable collective bargain rate for that position, whichever is greater.