In Baltimore there are 50 employment agencies, mainly of a domestic nature. The usual fee charged an employer, though not regulated by law, is $2. An agency ordinarily agrees to supply an employer with help for at least 30 days without additional cost.

New York State issued in 1918, 674 licenses to employment agencies engaged in various kinds of employment business. In 1919, 719 employment agency licenses were issued; in 1920, 728 and in 1921, 788. The law stipulates that the fees charged domestic work applicants by employment agencies shall not in any case exceed ten per cent of the first month's wages. If a domestic worker does not accept a position to which he is referred or fails to obtain employment, the full amount which he paid the agency is to be refunded after three days allowed for obtaining facts. If an employee fails to remain one week in a position, the agency is required to furnish the employer with a new employee, or return 3.6 of the fee paid in by the employer, provided the employer notifies the agency within thirty days of the failure of the worker to accept the position or of the employee's discharge for cause. If the employee is discharged within one week without his fault, another position is furnished him or 3.5 of the fee returned.

Employment agencies in New York State must also give receipts for money paid them. Day workers receiving a rate of $3.60 to $4.00 per day each pay an initial fee of 50 cents to the agency furnishing them with work. Employers of domestic labor pay the agency for one month's service a flat rate of from $6 to $10 for general houseworkers and from $3 to $5 for part-time workers. For a temporary laborer, employers pay a fee of $1 and for a day worker they pay a fee of 50 cents. For commercial and industrial placements an employee pays to the agency 5 per cent of her first month's wage, but no charge is made for the employer furnishing the work.

The laws of Massachusetts regulating employment agencies of a domestic nature are almost similar to those of New York State, the difference in the main being in the size of the fees. In Massachusetts an intelligence office keeper is entitled to receive from an applicant, employer or employee, a fee of 25 per cent of the first week's wages; and in case of day work a fee of 10 per cent of a day's pay. The Michigan domestic employment agency fees for employee and employer are about the same as that for New York State.

In the District of Columbia, a domestic employment agency is entitled to receive in advance from an employer $2 for each employee for at least 30 days service, and from an applicant for work $1. One-half of this fee is to be returned on demand if such applicant does not have a fair opportunity of employment within 15 days from date of payment. When an applicant actually receives employment at a wage of $25 a month or more he pays the agency an additional $1. However, it is a common practice among Washington employment agencies to have applicants pay $2 in advance of securing a place for work. In the light of the total amount of money paid in wages of domestic and personal service, especially with such a heavy turnover, the fees paid to employment agencies by both employers and employees evidently amount to quite a considerable sum.

Thirty years ago Miss Salmon in her study of domestic service pointed out, not only the exorbitant fees charged by employment agencies, but the vice and crime nurtured by them.[42] In 1915 investigations of Miss Kellor in Baltimore, Philadelphia, New York, Boston and other cities brought out some more striking facts. In Philadelphia 84 per cent of the employment agencies were in private residences and 3 per cent of them were in business buildings. In New York 85 per cent of these agencies were conducted in very close contact with the families of the agents. In Chicago 81 per cent of them were in buildings occupied by families. In Boston 73 per cent of the agencies were in business buildings and only 27 per cent were in residences. The poor business methods of many private intelligence offices, surrounded by gambling dens, fortune tellers, palmists and midwives, and their frauds are insignificant as compared with their conscious, deliberate immorality. Miss Kellor says that many Negro intelligence offices are hopelessly immoral but that some city authorities often argue that since they do not affect the whites there is no reason for disturbing them.[43]

The Third Biennial Report of the Department of Labor and Industry of Maine for the year 1915-1916 contains a warning against employment agencies collecting fees in excess of the law. This report recommends that the important economic task of employment be taken out of the hands of the agents and placed under management of the State. A similar note was voiced by one of the committees of President Harding's conference on unemployment.

The large experience with both municipal and State offices and with the United States Employment Service has given unmistakable evidence that the recruiting and placement of labor is a public necessity and a general benefit to the whole community. It can therefore well become a matter conducted under public supervision and at public expense. Domestic service, especially in large cities and particularly because of the absence of organization and group connection of the workers, is especially in need of such public direction.

Summary and Conclusions

From 1870 to 1900 there was an increase in the total number of persons engaged in domestic and personal service in the United States. Since that time there has been a steady decrease in the number so engaged. Although Negroes have followed the general trend of increase and decline, in proportion to their population, they furnish a larger percentage of domestic workers than any other group in the United States, the female workers outnumbering the male.