Employment Services Industry Licensing Guide
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Arkansas Employment Agency

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Licensing requirements for Arkansas employment, staffing and talent agencies.

This page provides an overview of employment services licensing in Arkansas for individuals and agencies. You will find state requirements, application fees, filing instructions, and more. For assistance with licensing, please contact us to learn about our software and managed license services.

Companies that provide employment services in Arkansas must apply for a license prior to doing business. Depending on the services offered, businesses may need to apply for more than one license type, and in some cases, an individual license will be required as well.

Company Licenses

Arkansas Employment Services Company Licenses

Companies acting as employment agencies in Arkansas must obtain the following licenses before offering employment services. Applications usually require proof of incorporation or a certificate of authority.

Arkansas Employment Agency License

Agency:Arkansas Department of Labor
Fact Checked:3/12/18

Initial Registration

This section applies to firms that are applying for a license in Arkansas for the first time.

Form:

Contact the Department of Labor for an application.

Agency Fee:

$250

Notes:

Operation of an employment agency may also require an individual manager or agent license from the department.

Bond Amount:

$5,000

Fact Checked:12/7/16

Registration Renewal

This section applies to firms that are already licensed in Arkansas and need to renew their license.

Form:

Contact the Department of Labor for an application.

Agency Fee:

$250

Due:

Annually

Fact Checked:12/7/16

Arkansas Professional Employer Organization License

Agency:Arkansas Insurance Department - Product Compliance Division
Law:

Arkansas Code § 23-92-404

Foreign Qualification is Prerequisite:Yes
Financial Requirements:

Licensees must maintain a net worth of at least $100,000.

Insurance Requirements:

Certificates of insurance certifying that workers compensation coverage has been secured for each client must be submitted to the Department within 30 days of its effective date.

Bond Requirements:

Either a bond in the amount of at least $100,000, an irrevocable letter of credit in a face amount of at least $100,000, or proof of a deposit of securities with a minimum market value of $100,000 is required.

Notes:

PEOs that are accredited by ESAC, which is a licensed Employer Assurance Service Organization (ESAO) in Arkansas, are not required to post the required $100,000 bond or submit the application and biennial renewal forms.

Fact Checked:6/1/21

Initial Registration

Form:

Form PEO-P: PEO Application

Agency Fee:

$1,000

Notarize:Required
Required Attachments:
  • A list by jurisdiction of each name under which the PEO(s) has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors and, if known, successor business entities
  • Controlling Person Exhibit for each controlling person
  • A financial statement setting forth the financial condition of the PEO, as of a date not earlier than 180 days before the date the financial statement is submitted to the commissioner. The financial shall be prepared in accordance with generally accepted accounting principles, and unless the PEO provides financial assurance as set forth in Ark. Code Ann. §23-92-408(a)(2), the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the PEO.
  • The states in which the applicant is currently doing business as a PEO
  • A list of all licenses held by the applicant or its controlling persons
  • If the applicant is organized under Arkansas law as a corporation, limited partnership or limited liability company, attach a copy the relevant certificate issued by the Secretary of State of Arkansas. If a partnership or sole proprietor doing business under an assumed name, please furnish a copy of any assumed name filing and indicate the county or counties in which it is filed.
  • If the applicant is organized under the laws of another state as a corporation, limited partnership or limited liability company, attach a copy of the relevant certificate issued by the Secretary of State of Arkansas, evidencing the applicant’s authority to conduct business in the State of Arkansas
  • Copies of all notices, pleadings, answers, complaints, orders that set out the allegations, the applicant’s defenses, the basis upon which the action was concluded (if applicable)
  • A list of litigation pending against the applicant (if applicable)
  • A specimen copy of the proposed contract between the applicant and its clients
  • An explanation of any health benefits available to your employees
  • An explanation of any other benefits that may be provided to the employee
Fact Checked:6/1/21

Registration Renewal

Form:

Form PEO-PR: PEO Renewal Application

Agency Fee:

$1,000

Due:

Biennially by the date of issuance.

Notarize:Required
Required Attachments:
  • A list by jurisdiction of each name under which the PEO(s) has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors and, if known, successor business entities
  • Controlling Person Exhibit for each controlling person
  • A financial statement setting forth the financial condition of the PEO, as of a date not earlier than 180 days before the date the financial statement is submitted to the commissioner. The financial shall be prepared in accordance with generally accepted accounting principles, and unless the PEO provides financial assurance as set forth in Ark. Code Ann. §23-92-408(a)(2), the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the PEO.
  • The states in which the applicant is currently doing business as a PEO
  • A list of all licenses held by the applicant or its controlling persons
  • If the applicant is organized under Arkansas law as a corporation, limited partnership or limited liability company, attach a copy the relevant certificate issued by the Secretary of State of Arkansas. If a partnership or sole proprietor doing business under an assumed name, please furnish a copy of any assumed name filing and indicate the county or counties in which it is filed.
  • If the applicant is organized under the laws of another state as a corporation, limited partnership or limited liability company, attach a copy of the relevant certificate issued by the Secretary of State of Arkansas, evidencing the applicant’s authority to conduct business in the State of Arkansas
  • Copies of all notices, pleadings, answers, complaints, orders that set out the allegations, the applicant’s defenses, the basis upon which the action was concluded (if applicable)
  • A list of litigation pending against the applicant (if applicable)
  • A specimen copy of the proposed contract between the applicant and its clients
  • An explanation of any health benefits available to your employees
  • An explanation of any other benefits that may be provided to the employee
Fact Checked:6/1/21

Financial Reporting

Agency Fee:

$0

Due:

Annually by the registration anniversary date.

Notes:

Licensees must submit a financial statement setting forth the financial condition of the PEO, as of a date not earlier than 180 days before the date the financial statement is submitted to the commissioner. The financial shall be prepared in accordance with generally accepted accounting principles, and unless the PEO provides financial assurance as set forth in Ark. Code Ann. §23-92-408(a)(2), the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the PEO.

Fact Checked:6/3/21

Supplemental Reporting
Quarterly Report

Form:

Form PC EL - Quarterly Report

Agency Fee:

$0

Due:

Within 45 days after the end of each calendar quarter.

Fact Checked:6/3/21

Arkansas Professional Employer Organization License - Exempt

Agency:Arkansas Insurance Department - Product Compliance Division
Law:

Arkansas Code § 23-92-404

Notes:

A professional employer organization is eligible for exemption if they:

  • Submit a properly executed request for exemption on a form provided by the State Insurance Department;
  • Are domiciled outside of Arkansas and is licensed or registered as a professional employer organization in another state that has the same or greater requirements;
  • Do not maintain an office in this state or solicit in any manner clients located or domiciled within this state; and
  • Have 100 or fewer covered employees employed or domiciled in Arkansas.
Fact Checked:6/1/21

Initial Registration

Form:

Form PEO-E: Initial and Renewal PEO Exempt Application

Agency Fee:

$100

Notarize:Required
Required Attachments:
  • A list by jurisdiction of each name under which the PEO(s) has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors and, if known, successor business entities
  • The states in which the applicant is currently doing business as a PEO
Fact Checked:6/3/21

Registration Renewal

Form:

Form PEO-E: Initial and Renewal PEO Exempt Application

Agency Fee:

$100

Due:

Biennially by the date of issuance.

Notarize:Required
Required Attachments:
  • A list by jurisdiction of each name under which the PEO(s) has operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors and, if known, successor business entities
  • The states in which the applicant is currently doing business as a PEO
Fact Checked:6/3/21

Arkansas Professional Employer Organization License - Group

Agency:Arkansas Insurance Department - Product Compliance Division
Law:

Arkansas Code § 23-92-404

Foreign Qualification is Prerequisite:Yes
Financial Requirements:

Licensees must maintain a net worth of at least $100,000.

Insurance Requirements:

Certificates of insurance certifying that workers compensation coverage has been secured for each client must be submitted to the Department within 30 days of its effective date.

Bond Requirements:

Either a bond in the amount of at least $100,000, an irrevocable letter of credit in a face amount of at least $100,000, or proof of a deposit of securities with a minimum market value of $100,000 is required.

Fact Checked:6/1/21

Initial Registration

Form:

Form PEO-G: Group PEO Application

Agency Fee:

$1,000 per individual PEO affiliate applicant.

Notarize:Required
Required Attachments:
  • A list by jurisdiction of each name under which the group or its related PEOs have operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors and, if known, successor business entities
  • Cross Guarantee Form
  • Controlling Person Exhibit for each controlling person
  • A financial statement setting forth the financial condition of the group, as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the commissioner. The financial shall be prepared in accordance with generally accepted accounting principles, and unless the group provides financial assurance as set forth in Ark. Code Ann. §23-92-408(a)(2), the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the group. A group may submit combined or consolidated financial statements to meet this requirement but should indicate that the statements are combined or consolidated.
  • The states in which the applicant or one or more of its affiliates is currently doing business as a PEO or group
  • A list of all licenses held by the applicant or its controlling persons
  • If the applicant is organized under Arkansas law as a corporation, limited partnership or limited liability company, attach a copy the relevant certificate issued by the Secretary of State of Arkansas. If a partnership or sole proprietor doing business under an assumed name, please furnish a copy of any assumed name filing and indicate the county or counties in which it is filed.
  • If the applicant is organized under the laws of another state as a corporation, limited partnership or limited liability company, attach a copy of the relevant certificate issued by the Secretary of State of Arkansas, evidencing the applicant’s authority to conduct business in the State of Arkansas
  • Copies of all notices, pleadings, answers, complaints, orders that set out the allegations, the applicant’s defenses, the basis upon which the action was concluded (if applicable)
  • A list of litigation pending against the applicant (if applicable)
  • A specimen copy of the proposed contract between the applicant and its clients
  • If the group holding company also offers professional employer organization services directly to clients in addition to any provided by its members, attach a list of all clients
  • An explanation of any health benefits available to your employees
  • An explanation of any other benefits that may be provided to the employee
Fact Checked:6/3/21

Registration Renewal

Form:

Form PEO-GR: Group PEO Renewal Application

Agency Fee:

$1,000 per individual PEO affiliate applicant.

Due:

Biennially by the date of issuance.

Notarize:Required
Required Attachments:
  • A list by jurisdiction of each name under which the group or its related PEOs have operated in the preceding five (5) years, including any fictitious names, alternative names, names of predecessors and, if known, successor business entities
  • Cross Guarantee Form
  • Controlling Person Exhibit for each controlling person
  • A financial statement setting forth the financial condition of the group, as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the commissioner. The financial shall be prepared in accordance with generally accepted accounting principles, and unless the group provides financial assurance as set forth in Ark. Code Ann. §23-92-408(a)(2), the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the group. A group may submit combined or consolidated financial statements to meet this requirement but should indicate that the statements are combined or consolidated.
  • The states in which the applicant or one or more of its affiliates is currently doing business as a PEO or group
  • A list of all licenses held by the applicant or its controlling persons
  • If the applicant is organized under Arkansas law as a corporation, limited partnership or limited liability company, attach a copy the relevant certificate issued by the Secretary of State of Arkansas. If a partnership or sole proprietor doing business under an assumed name, please furnish a copy of any assumed name filing and indicate the county or counties in which it is filed.
  • If the applicant is organized under the laws of another state as a corporation, limited partnership or limited liability company, attach a copy of the relevant certificate issued by the Secretary of State of Arkansas, evidencing the applicant’s authority to conduct business in the State of Arkansas
  • Copies of all notices, pleadings, answers, complaints, orders that set out the allegations, the applicant’s defenses, the basis upon which the action was concluded (if applicable)
  • A list of litigation pending against the applicant (if applicable)
  • A specimen copy of the proposed contract between the applicant and its clients
  • If the group holding company also offers professional employer organization services directly to clients in addition to any provided by its members, attach a list of all clients
  • An explanation of any health benefits available to your employees
  • An explanation of any other benefits that may be provided to the employee
Fact Checked:6/3/21

Financial Reporting

Agency Fee:

$0

Due:

Annually by the registration anniversary date.

Notes:

Licensees must submit a financial statement setting forth the financial condition of the PEO, as of a date not earlier than 180 days before the date the financial statement is submitted to the commissioner. The financial shall be prepared in accordance with generally accepted accounting principles, and unless the PEO provides financial assurance as set forth in Ark. Code Ann. §23-92-408(a)(2), the financial statement shall be audited by an independent certified public accountant licensed to practice in Arkansas or the state of domicile of the PEO.

Fact Checked:6/3/21

Supplemental Reporting
Quarterly Report

Form:

Form PC EL - Quarterly Report

Agency Fee:

$0

Due:

Within 45 days after the end of each calendar quarter.

Fact Checked:6/3/21

Arkansas Talent Agency License

Agency:Arkansas Department of Labor
Notes:

Arkansas does not have a separate talent agency license, but an employment agency license may be required.

Fact Checked:4/3/18

Initial Registration

Agency Fee:

$250

Fact Checked:12/7/16

Registration Renewal

Form:

Contact the Department of Labor for an application.

Agency Fee:

$250

Due:

Annually

Fact Checked:12/7/16

Employee Leasing Company - Enter into leasing contracts with other businesses that require labor. The leasing company loans its workers to the lessee while still providing specified responsibilities, such as workers compensation insurance, to the employees. This includes long term (6 months or more) temporary arrangements but often excludes temporary help arrangements. Unlike professional employer organizations, employee leasing companies are contracted when an employer needs to hire staff and does not want to handle human resources responsibilities.

Employment Agency - An entity that, for compensation, procures or attempts to procure employment for a person.

Professional Employer Organization - PEOs take on the human resources role for businesses and act as a co-employer in the sense that the client company's workers are administratively employees of the PEO but functionally these employees are controlled by the client company. Unlike employee leasing companies, PEOs are contracted when an employer already has staff and does not want to handle human resources responsibilities.

Staffing Agency - An entity that procures temporary or part-time employment for a person who then works under the supervision of a worksite employer.

Talent Agency - An entity that, for compensation, procures or attempts to procure employment or placement for an artist. (Certain art forms are excluded)

American Staffing Association
Staffing, recruiting, and workforce solution industry advocacy group.

National Association of Personnel Services (NAPS)
Education and training oriented association for personnel services providers.

National Association of Professional Employer Organizations (NAPEO)
Provides advocacy efforts, information, and other services to members of the employment industry.

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