Employment Services Industry Licensing Guide
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Colorado Employment Agency

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Licensing requirements for Colorado employment, staffing and talent agencies.

This page provides an overview of employment services licensing in Colorado 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 Colorado 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

Colorado Employment Services Company Licenses

Colorado Employee Leasing Company Certification

Agency:Colorado Department of Labor and Employment
Law:

C.R.S. 8-70-114

Financial Requirements:

Applicants must maintain and demonstrate working capital of at least $100,000.

Bond Requirements:

Applicants who do not meet the working capital requirement must file a surety bond, letter of credit, or cash escrow equal to 50 percent of the total UI premiums assessed during the previous calendar year. The initial security amount for a new employee-leasing company is equal to the standard UI rate (.0170) multiplied by 50 percent of its projected chargeable payroll for the current calendar year as estimated by the employee-leasing company.

Initial Registration

Form:

Form UITL-39: Employee Leasing Company Annual Report and Certification

Agency Fee:

$500

Notes:

The application must be reviewed and signed by an independent counsel.

Required Attachments:
  • Employee Leasing Company Sample Spreadsheet of Work-site Employers and Employees (needed only if more space is needed than is provided on the application)
  • One of the following requirements must be met:
    • Execute and file a surety bond, letter of credit, or cash escrow equal to 50 percent of the total UI premiums assessed during the previous calendar year. The initial security amount for a new employee-leasing company is equal to the standard UI rate (.0170) multiplied by 50 percent of its projected chargeable payroll for the current calendar year as estimated by the employee-leasing company.
    • Submit the most recent independently audited financial statement prepared by a certified public accountant using generally accepted accounting principles, which demonstrates that you have an accounting working capital of not less than $100,000. The financial statement must be no older than 13 months.
    • Receive and provide an annual accreditation by a qualified, bonded, and independent assurance organization as approved by the Colorado Department of Labor and Employment.
  • List of owners and/or officers including title and % of ownership or interest
  • Work-site employer names and your percentage of ownership or interest if sharing ownership or interest with any work-site employers
  • Work-site employer names and officer names and titles if the employee-leasing company and any work-site employer have common officers of a corporation
  • Names and job titles of the family members and the name of the business the family member operates if the employee-leasing company and any of the work-site employers operated in whole or in part by related family members of either the employee-leasing company or work-site employers

Registration Renewal

Form:

Form UITL-39: Employee Leasing Company Annual Report and Certification

Agency Fee:

$500

Due:

Annually by June 30.

Notes:

The application must be reviewed and signed by an independent counsel.

Required Attachments:
  • Employee Leasing Company Sample Spreadsheet of Work-site Employers and Employees (needed only if more space is needed than is provided on the application)
  • One of the following requirements must be met:
    • Execute and file a surety bond, letter of credit, or cash escrow equal to 50 percent of the total UI premiums assessed during the previous calendar year. The initial security amount for a new employee-leasing company is equal to the standard UI rate (.0170) multiplied by 50 percent of its projected chargeable payroll for the current calendar year as estimated by the employee-leasing company.
    • Submit the most recent independently audited financial statement prepared by a certified public accountant using generally accepted accounting principles, which demonstrates that you have an accounting working capital of not less than $100,000. The financial statement must be no older than 13 months.
    • Receive and provide an annual accreditation by a qualified, bonded, and independent assurance organization as approved by the Colorado Department of Labor and Employment.
  • List of owners and/or officers including title and % of ownership or interest
  • Work-site employer names and your percentage of ownership or interest if sharing ownership or interest with any work-site employers
  • Work-site employer names and officer names and titles if the employee-leasing company and any work-site employer have common officers of a corporation
  • Names and job titles of the family members and the name of the business the family member operates if the employee-leasing company and any of the work-site employers operated in whole or in part by related family members of either the employee-leasing company or work-site employers

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

Colorado Employment Agency License

Not required



Employment Agency licensure is not required on the State level in Colorado.

Colorado Talent Agency License

Not required



Talent Agency licensure is not required on the State level in Colorado.

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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