The proposed bill seeks to repeal the Arkansas Private Employment Agency Act of 1975, which governs the licensing and regulation of private employment agencies, employment counselors, and agency managers. By removing the entire Chapter 11 from the Arkansas Code, the bill eliminates the legal framework that requires licensing and oversight for these entities, effectively deregulating the sector. This repeal will impact the standards and practices within the employment agency industry in Arkansas, as it removes the penalties for non-compliance and the eligibility criteria for applicants, including citizenship, moral character, age, and educational qualifications.

In addition to the repeal, the bill introduces provisions for temporary licenses for agency managers and employment counselors, allowing them to operate for up to 90 days while awaiting permanent licenses. It also emphasizes transparency and ethical practices by prohibiting deceptive advertising and requiring agencies to display licenses prominently. The bill mandates that employment agencies file detailed schedules of fees with the Division of Labor and maintain accessible records related to job orders and placements. Overall, the proposed changes aim to streamline the licensing process while enhancing consumer protection and regulatory oversight within the employment agency sector.

Statutes affected:
SB 278: 19-6-201(17)