Texas Attorney General Opinion: V-1035 Page: 1 of 3
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r THE ATTORNEY GENERAL
OF TEXAS
PRICE DANIEL AUS., TEZXAS
April 6, 1950
Hon. M. B. Morgan, Commissioner
Bureau of Labor Statistics
Austin, Texas Opinion No. V-1035
Re: Validity of proposed con-
tract between National
Sales Personnel System
and licensed private em-
ployment agencies in Texas.
Dear Sir:
Your request for an opinion presents the question of
whether the National Sales Personnel System's mode of opera-
tion in Texas as evidenced by their contract to be executed with
licensed private employment agencies amounts to a violation of
the "Texas Private Employment Agency Law," (Acts 51st Leg.,
1949, ch. 245, p. 453, and codified as Art. 5221a-6, ,V.C.S.).
The copy of this proposed contract which you have sub-
mitted is called an "Operating Agreement." It provides that the
National Sales Personnel System will do advertising and promo-
tional work in securing business of employers who desire to hire
sales employees in a particular,artea. When such business is
acquired, the National Sales Personnel System will refer it to
the member office in the particular locality, who will in turn lo-
cate a prospective employee for the employer. The National
Sales Personnel System is to be compensated for its services
by sharing in the fee charged the applicant employee for whom
employment is secured. The agreement states that:the National
Sales Personnel System wUill have no contact with applicants for
employment and that the member offices are to charge their own
local contract rates to the applicant
We are of the opinion that such plan of operation as evi-
denced by this agreement does not amount to a violation of the
"Texas Private Employment Agency Law." We, of course, are
not at this time confronted with actual practices or conduct of
operation under this contract,
We do not believe that National Sales Personnel System's
proposed activities under this agreement are such as would require
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Texas. Attorney-General's Office. Texas Attorney General Opinion: V-1035, text, April 6, 1950; (https://texashistory.unt.edu/ark:/67531/metapth265854/m1/1/: accessed July 9, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.