Section R20-5-319. Form and Requirements of Contracts

A.      Contract terms and provisions. A licensee shall ensure that all contracts between a licensee and applicant set forth in clear and unambiguous terms the respective rights and obligations of the applicant and licensee and include the following:

1.        The name and address of the applicant and licensee;

2.        A list of the current schedule of fees and charges described in A.R.S. § 23-530(A) and submitted to the Commission;

3.        A clear statement defining when the applicant becomes obligated for the payment of a fee;

4.        A clear statement describing the circumstances under which the applicant is entitled to an adjustment, waiver, or refund of a fee;

5.        A clear statement describing the services performed by the licensee, including if applicable, the duration of the contract;

6.        A statement that the employment agency is licensed, bonded, operates under the laws of Arizona, and is regu- lated by the Industrial Commission of Arizona;

7.        An acknowledgment by the applicant that the applicant has received a copy of the signed contract; and

8.        Except for contracts between an applicant and a talent or modeling agent, a statement that employment is consid- ered to be temporary when within 90 days after employ- ment begins the employment is terminated through “no fault” of the applicant, or the applicant voluntarily termi- nates the employment with “just cause.”

9.        The following statement shall be included in all contracts between an applicant and career counseling service in no smaller than 10 point bold face type: ‘No verbal or writ- ten promise or guarantee of any job or employment is made or implied under the terms of the contract’.

B.       An applicant is deemed to have accepted a position when the applicant agrees with an employer or company to start work at an agreed-upon wage.

C.      Except for contracts between an applicant and a talent or mod- eling agent, all placements are considered permanent unless the contract expressly states otherwise or within 90 days after employment begins the employment is terminated through “no fault” of the applicant, or the applicant voluntarily terminates the employment with “just cause.”

D.      A licensee shall provide the applicant a copy or duplicate orig- inal of all documents signed by either or both the applicant and licensee.

E.       The duration and terms of a contract entered into by a talent or modeling agent and applicant shall not exceed two years. A contract may be renewed or terminated by mutual consent of the parties.

F.       If a term of a contract entered into by a talent or modeling agent, or applicant provides that the applicant’s compensation is paid directly to the talent or modeling agent by a company, the talent or modeling agent shall pay the applicant the com- pensation received, less the talent or modeling agent’s fee, no later than seven days after receiving the compensation from the company.

G.      A talent or modeling agent shall not specify in a contract with an applicant a higher rate of commission than that which is on file with the Department.

Historical Note

Adopted effective September 9, 1998 (Supp. 98-3).