Employment Services Industry Licensing Guide
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Michigan Employment Agency

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Licensing requirements for Michigan employment, staffing and talent agencies.

This page provides an overview of employment services licensing in Michigan 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 Michigan 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.

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Company Licenses

Michigan Employment Services Company Licenses

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

Michigan Employment Agency License

Agency:Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Corporations, Securities & Commercial Licensing - Licensing Division
Fact Checked:3/12/18

Initial Registration

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

Form:

http://www.michigan.gov/lara/0,4601,7-154-72600_72602_72731_72870---,00.html

Agency Fee:

$350

Notes:

Michigan offers two types of agency licenses: Type A and Type B.

Fact Checked:12/7/16

Registration Renewal

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

Form:

http://www.michigan.gov/lara/0,4601,7-154-72600_72602_72731_72870---,00.html

Agency Fee:

$350

Due:

Annually by December 31.

Fact Checked:12/7/16

Michigan Professional Employer Organization License

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

MCL 338.3727

Financial Requirements:

A minimum of $100,000 in working capital, as defined by generally accepted accounting principles

Bond Requirements:

If the PEO does not meet working capital requirements, they must submit a bond, irrevocable letter of credit, or securities with a minimum market value of $100,000.

Fact Checked:6/8/21

Initial Registration

Form:

Form PEO-10: Professional Employer Organization License Application

Agency Fee:

Depends on when you apply: $3,171 from May 1st to November 30th, $2,753 from December 1st to February 28th, and $2,335 from March 1st to April 30th.

Required Attachments:
  • Other names under which the PEO conducts business
  • The address of each office maintained in Michigan
  • A list by jurisdiction of each name under which the PEO has operated in the preceding 5 years, including any alternative names, names of predecessors, and, if known, successor business entities
  • A statement of management that includes the name and evidence of the business experience of any individual who serves as president or chief executive officer or otherwise has the authority to act as senior executive officer of the PEO
  • A financial statement describing the financial condition of the PEO prepared in accordance with generally accepted accounting principles and audited by an independent certified public accountant
  • A financial audit of the applicant. At the time of application for an initial license, the applicant shall submit its most recent audit, which may not be older than 13 months
  • Evidence of one of the following:
    • A minimum of $100,000.00 in working capital, as defined by generally accepted accounting principles; or
    • If the PEO or PEO Group cannot document the required financial statement and audit information, a minimum $100,000 in working capital, a bond, irrevocable letter of credit, or securities with a value of $100,000 plus any deficit in capital is required
Fact Checked:6/8/21

Registration Renewal

Form:

Form PEO-10: Professional Employer Organization License Application (Renewal)

Agency Fee:

$3,171

Due:

Annually by August 31.

Required Attachments:
  • Submit changes to any of the information provided on the previous application
  • The most recent financial audit of the applicant
Fact Checked:6/8/21

Michigan Professional Employer Organization License - Group

Agency:Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Construction Codes - Licensing Division
Law:

MCL 338.3727

Foreign Qualification is Prerequisite:No
Financial Requirements:

A minimum of $100,000 in working capital, as defined by generally accepted accounting principles

Bond Requirements:

If the PEO does not meet working capital requirements, they must submit a bond, irrevocable letter of credit, or securities with a minimum market value of $100,000.

Registered Agent (Special Agency) Required?No
Fact Checked:6/16/21

Initial Registration

Form:

Form PEO-10: Professional Employer Organization License Application

Agency Fee:

Depends on when you apply: $3,171 from May 1st to November 30th, $2,753 from December 1st to February 28th, and $2,335 from March 1st to April 30th.

Required Attachments:
  • Other names under which the PEO conducts business
  • List of Group Members
  • The address of each office maintained in Michigan
  • A list by jurisdiction of each name under which the PEO has operated in the preceding 5 years, including any alternative names, names of predecessors, and, if known, successor business entities
  • A statement of management that includes the name and evidence of the business experience of any individual who serves as president or chief executive officer or otherwise has the authority to act as senior executive officer of the PEO
  • A financial statement describing the financial condition of the PEO prepared in accordance with generally accepted accounting principles and audited by an independent certified public accountant
  • A financial audit of the applicant. At the time of application for an initial license, the applicant shall submit its most recent audit, which may not be older than 13 months
  • Evidence of one of the following:
    • A minimum of $100,000.00 in working capital, as defined by generally accepted accounting principles; or
    • If the PEO or PEO Group cannot document the required financial statement and audit information, a minimum $100,000 in working capital, a bond, irrevocable letter of credit, or securities with a value of $100,000 plus any deficit in capital is required
Fact Checked:6/8/21

Registration Renewal

Form:

Form PEO-10: Professional Employer Organization License Application (Renewal)

Agency Fee:

$3,171

Due:

Annually by August 31.

Required Attachments:
  • Submit changes to any of the information provided on the previous application
  • The most recent financial audit of the applicant
Fact Checked:6/8/21

Michigan Professional Employer Organization Limited License

Agency:Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Construction Codes - Licensing Division
Law:

MCL 338.3729

Foreign Qualification is Prerequisite:No
Notes:

A PEO is eligible for a limited license if it meets all of the following conditions:

  • Is domiciled outside this state and is licensed or otherwise regulated as a PEO in another state.
  • Does not maintain an office in this state or does not directly solicit clients located or domiciled in this state.
  • Does not have more than 50 covered employees employed or domiciled in this state on any given day.
Registered Agent (Special Agency) Required?No
Fact Checked:6/16/21

Initial Registration

Form:

Limited Professional Employer License Application

Agency Fee:

Depends on when you apply: $3,171 from May 1st to November 30th, $2,753 from December 1st to February 28th, and $2,335 from March 1st to April 30th.

Required Attachments:
  • A copy of valid license or certificate of regulation from another state as a PEO
Fact Checked:6/8/21

Registration Renewal

Form:

Limited Professional Employer License Application (Renewal)

Agency Fee:

$3,171

Due:

Annually by August 31.

Required Attachments:
  • Submit changes to any of the information provided on the previous application
Fact Checked:6/8/21

Michigan Talent Agency License

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

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

Fact Checked:4/3/18

Initial Registration

Form:

http://www.michigan.gov/lara/0,4601,7-154-72600_72602_72731_72870---,00.html

Agency Fee:

$350

Fact Checked:12/7/16

Registration Renewal

Form:

http://www.michigan.gov/lara/0,4601,7-154-72600_72602_72731_72870---,00.html

Agency Fee:

$350

Due:

Annually by December 31.

Fact Checked:12/7/16

Individual Licenses

Michigan Individual Employment Services Licenses

Michigan Personnel Agent License

Agency:Michigan Department of Licensing and Regulatory Affairs (LARA) - Bureau of Professional Licensing
Requirement Notes:


  • Applicants must be of good moral character and be at least 18 years of age.
  • Pass the Personnel Agent examination administered through PSI Services, LLC (PSI). 
Fact Checked:10/28/19

Initial Registration

Form:

Personnel Agency Employment or Consulting Agent License Application

Agency Fee:

$70

Fact Checked:1/7/20

Registration Renewal

Filing Method:

Online

Agency Fee:

$40

Due:

Annually by December 31.

Fact Checked:1/7/20

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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