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Keep an eye on compliance when it comes to operating your employment agency
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.
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)
Filing fees depend on your individual situation. We do our best to calculate your filing fees
upfront and collect those fees today so we can get started. Your specialist will determine your
exact filing fees and invoice additional fees if required.