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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117370
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Im opening up a new business in Massachusetts: domestic staffing

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I'm opening up a new business in Massachusetts: domestic staffing agency (housekeeping, babysitting, nannies, etc.).

After speaking with the Dept of Labor's program coordinator, I was informed that in MA, one cannot charge a fee to both the client and the applicant/prospective employee. It has to either be one or the other.

However, when he sent me the legal document which goes over the legal framework of setting up such a business, I couldn't find or reference any specific clauses that would attest to such a rule.

The only exception, perhaps, was in Chapter 140, Section 46K Clause 11 (Prohibited Activities or Conduct):
"(11) Divide or share, or offer to divide or share service fees with employer clients"

Does this clause essentially substantiate what he was saying? I can email a copy of the entire document for you to glance over and see if any other parts would allude to this fact.

Thank you for your question. I look forward to working with you to provide you the information you are seeking.

It is exactly that clause in Chapter 140 regarding prohibited activities that prohibits fee splitting or sharing with employer clients and thus charging the employer client and the employee both fees for service you are providing that substantiates what the DOL is telling you. MA DOL does not play games with this either as they take it very seriously and if they discover from an employee complaint or audit that you are violating this, they can come after you not only for reimbursement of the money you collected, but penalties and fines as well which can amount to 2-3 times the money you collected.

I would however be happy to review the document if you can upload it to for me to review.

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Law Educator, Esq. and 2 other Business Law Specialists are ready to help you
Customer: replied 4 years ago.

Thanks Paul!

Thank you very much