City Warns Of Scams At Unemployment Agencies
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The city announced Wednesday a crackdown of the city's unemployment agencies, following an investigation that showed many are taking advantage of the very people who need their help the most. NY1's Molly Kroon filed the following report. A video shot recently shot by an undercover agent from the city's Department of Consumer Affairs shows a unemployment agency person demanding that someone looking for employment pay $40 for the service.
But according to the law, an agency has to get someone a job before it gets paid.
"There are no fees. No application fee. No background check fee. All of those things are illegal," said Jonathan Mintz, the commissioner of the Department of Consumer Affairs. "Anything like this should be a red flag."
Wednesday the city announced the results of an 18-month long investigation, and found roughly half of the agencies investigated were breaking the law by not only charging illegal fees, but also making clients sign contracts in a language they do not understand. The investigation uncovered that some agencies were asking for these fees, and then never following through with jobs.
"If they're asking for money up front, they don't expect to see you again," said Mintz. "They're not going to get you a job, never were going to get you a job, will probably tell you to come back tomorrow and then they tell you to come back next week."
The city's closed one agency and temporarily shut down two others, including the Latinos Employment Agency in Queens. Nearly 160 other agencies have settled with the city and paid back nearly a quarter of a million dollars, part of which went to the victims.
"There's nothing wrong with employment agencies," said Mayor Michael Bloomberg. "You want them to find jobs and earn fees. If the employment agencies go out of business, that's not good for anybody. We just want to make sure they comply with the law."
The city warns people looking for jobs from an employment agency to:
Only use a licensed employment agency
Avoid agencies that "guarantee" jobs
Get a job description in writing
Know your fee and refund rights
Get contracts negotiated in a language be written in also in that language
According to the DCA, those who think they have been deceived should call 311.