Linwood Consultants, Ltd. v. Sharon Frank Associates, Inc.

OPINION OF THE COURT

Michael D. Stallman, J.

In this contract action for an employment agency fee, defendant moves for summary judgment. Defendant’s assertion of illegality compels analysis of recent amendments to the statutory scheme which regulates employment agencies. (General Business Law, art 11, § 170 et seq.) Specifically, may an employer avoid paying an agency commission solely because the agency was not licensed?

Plaintiff, an "employer fee paid” employment agency, derives its income exclusively from the employers to whom plaintiff refers prospective employees. Defendant hired a…