More than half of the city’s private employment agencies have ripped off jobless New Yorkers, officials say.
As the Big Apple’s unemployment rate hovers above 10 percent — higher than the national average of 9.7 percent — 205 of the 380 private job-finding firms here have been slapped with consumer-fraud violations since late 2008.
“The abuses in the employment agencies are some of the most egregious,” said Consumer Affairs Commissioner Jonathan Mintz. “When the economy gets worse, the risk becomes greater and, for some, the temptation to take advantage of others becomes greater.”
Predatory agencies were most often fined for requiring upfront fees for job-hunting services, charging between $20 to $100. It’s illegal to charge for services until the customer secures a job.
Agencies are also barred from placing ads that guarantee jobs. Fines start at $500. For repeat offenders, licenses can be revoked. The city has revoked the licenses of eight agencies since 2007.
The city collected a total of $296,974 in fines since 2008 and wants to give customers $123,000 in restitution. Some people are too embarrassed to complain, the city says. In fiscal 2010 to date, the city has collected $110,905 from agencies, a 120 percent increase compared to the same period in 2005.
With the city losing more than 150,000 jobs in 2009, “it has all the recipe factors that make this a growing problem,” Mintz said.
Greedy agencies often prey on immigrants. The worst offenders threaten to report victims to federal officials if they complain.
“Anytime someone takes your money under false pretenses, it’s a crime,” Mintz said.
