Employment Agency Licensing

Keep an eye on compliance when it comes to operating your employment agency
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Businesses that search for employment opportunities on behalf of a jobseeker are often required to hold an employment agency license. Currently, 24 states issue employment agency licenses, and agencies operating in multiple states may need to apply for several licenses.

Employment agencies must register with the secretary of state prior to applying for a license. Along with the application, agencies are often required to meet a bonding requirement, provide proof of worker’s compensation insurance, and sometimes hold an individual employment agent license. Additional steps are often needed to apply for a license, but these requirements vary by state. A dedicated compliance expert can help you keep track of varying jurisdiction requirements and updated laws.

Overview By State

Looking for employment agency certification requirements in a particular jurisdiction? The following table summarizes employment service firm licensing requirements across the United States. Click on any state for the licensing information specific to that state.

Alabama

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More Info

Not required

Alaska

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More Info

Agency

Alaska Department of Labor and Workforce Development - Division of Labor Standards and Safety

Initial Application

Fee:

$10

Form:

Forms must be requested from the Department of Labor and Workforce Development.

License Renewal

Fee:

$100

Form:

Forms must be requested from the Department of Labor and Workforce Development.

Due:

Biennially

Arizona

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More Info

Not required

The state of Arizona no longer issues employment agency licenses.

Arkansas

Our Resources:

More Info

Agency

Arkansas Department of Labor

Initial Application

Fee:

$250

Form:

Contact the Department of Labor for an application.

License Renewal

Fee:

$250

Form:

Contact the Department of Labor for an application.

Due:

Annually

California

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Not required

Colorado

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Not required

Connecticut

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Agency

Connecticut Department of Labor - Division of Wage and Workplace Standards

License Renewal

Delaware

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Not required

District of Columbia

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Agency

District of Columbia Department of Consumer and Regulatory Affairs - Business Licensing Division

License Renewal

Florida

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Not required

Georgia

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Not required

Hawaii

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Agency

Hawaii Department of Commerce and Consumer Affairs - Professional and Vocational Licensing

Initial Application

Fee:

$315 if you file from July 1 of an even-numbered year to June 30 of an odd-numbered year and $190 if you file from July 1 of an odd-numbered year to June 30 of an even-numbered year.

Form:

http://cca.hawaii.gov/pvl/programs/employment/application_publications/

License Renewal

Form:

Applications are mailed in May.

Due:

By June 30 of even-numbered years.

Idaho

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Not required

Illinois

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Agency

Illinois Department of Labor

Initial Application

Fee:

$250 for organizations with less than 3 counselors, $350 for organizations with 3-5 counselors, $400 for organizations with 6-10 counselors, and $500 for organizations with more than 10 counselors.

Form:

Private Employment Agency License Application

License Renewal

Fee:

$250 for organizations with less than 3 counselors, $350 for organizations with 3-5 counselors, $400 for organizations with 6-10 counselors, and $500 for organizations with more than 10 counselors.

Form:

Private Employment Agency License Renewal Form

Due:

Annually

Indiana

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More Info

Agency

Indiana Department of Revenue

Initial Application

License Renewal

Fee:

$150

Form:

http://www.in.gov/dor/4474.htm

Due:

Annually

Iowa

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Agency

Iowa Division of Labor

License Renewal

Due:

Annually by June 30.

Kansas

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Agency

Kansas Department of Labor

Initial Application

Fee:

$25

License Renewal

Fee:

$25

Due:

Annually

Kentucky

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Not required

Louisiana

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Agency

Louisiana Workforce Commission

Initial Application

Fee:

$600

Form:

Form 00L-1, not available online.

License Renewal

Fee:

$200

Due:

Annually

Maine

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Not required

Maryland

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Not required

Massachusetts

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Agency

Massachusetts Office of Labor and Workforce Development

Michigan

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Agency

Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Corporations, Securities & Commercial Licensing - Licensing Division

License Renewal

Minnesota

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Agency

Minnesota Department of Labor and Industry

Mississippi

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Not required

Missouri

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Not required

Montana

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Not required

Nebraska

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Not required

Nevada

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Agency

Nevada Department of Business and Industry - Office of the Labor Commissioner

New Hampshire

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Not required

New Jersey

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Agency

New Jersey Division of Consumer Affairs - Regulated Business Section

Initial Application

Fee:

$250

Form:

Contact the division for a form.

License Renewal

Fee:

$250

Form:

Contact the division for a form.

Due:

Annually

New Mexico

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More Info

Not required

New York

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Agency

New York State Department of Labor

Initial Application

License Renewal

Fee:

$250-$700 depending on multiple factors.

Form:

https://labor.ny.gov/formsdocs/wp/ellsformsandpublications.shtm#Employment_Agency

Due:

Biennially

North Carolina

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Agency

North Carolina Department of Labor - Wage and Hour Division

Initial Application

License Renewal

Fee:

$500

Form:

http://www.nclabor.com/wh/forms.htm

Due:

Annually

North Dakota

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More Info

Agency

North Dakota Department of Labor and Human Rights

Initial Application

Fee:

$200

Form:

The Department of Labor and Human Rights will issue application forms upon request.

License Renewal

Fee:

$200

Form:

Forms are sent in the mail.

Due:

Annually

Ohio

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Not required

Oklahoma

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Agency

Oklahoma Office of the Department of Labor

Oregon

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Not required

Pennsylvania

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Not required

Rhode Island

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Not required

South Carolina

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Agency

South Carolina Secretary of State - Division of Business Filings

Initial Application

License Renewal

Fee:

$100

Form:

http://www.sos.sc.gov/Employment_Agencies

Due:

Biennially by December 31.

South Dakota

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Not required

Tennessee

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Not required

Texas

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Not required

Utah

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Not required

Vermont

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Not required

Virginia

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Not required

Washington

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Agency

Washington Department of Revenue - Business Licensing Service

Initial Application

License Renewal

Not required

West Virginia

Our Resources:

More Info

Agency

West Virginia Division of Labor

Initial Application

Fee:

$0

Form:

There is no form, but follow the instructions on the fact sheet to apply.

License Renewal

Fee:

$0

Due:

Annually

Wisconsin

Our Resources:

More Info

Agency

Wisconsin Department of Workforce Development

Initial Application

Fee:

1% of gross receipts for the license year. The minimum fee is $50 and the maximum fee is $300.

Form:

https://dwd.wisconsin.gov/dwd/forms/erd/ls_86_e.htm

License Renewal

Fee:

1% of gross receipts for the license year. The minimum fee is $50 and the maximum fee is $300.

Form:

https://dwd.wisconsin.gov/dwd/forms/erd/ls_86a_e.htm

Due:

Annually

Wyoming

Our Resources:

More Info

Agency

Wyoming Department of Workforce Services

License Renewal

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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