Employment Services Industry Licensing Guide
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Minnesota Employment Agency

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Licensing requirements for Minnesota employment, staffing and talent agencies.

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

Minnesota Employment Services Company Licenses

Minnesota Employee Leasing Company License

Agency:Minnesota Department of Commerce Employee Leasing Company Registration Unit
Law:

MN Stat. § 79.255

Fact Checked:6/8/21

Initial Registration

Form:

Employee Leasing Company Registration Form

Agency Fee:

$100

Required Attachments:
  • Sample Affidavit (if the registrant's Workers Compensation insurance has never been canceled or non renewed)
  • Address of each office maintained in the State of Minnesota
  • A list by jurisdiction of each and every name that the lessor has operated under in the preceding 5 years including any alternative names and names of predecessors and, if known, successor business entities
  • List of each person or entity who owns a 5% or greater interest in the employee leasing business at the time of application and a list of each person who formerly owned a five percent or greater interest in the employee leasing company or its predecessors, or alter egos in the preceding five years
  • List of each and every cancellation or non-renewal of workers’ compensation insurance which has been issued to the lessor or any predecessor in the preceding five years. The list shall include the policy or certificate number, name of insurer or other provider of coverage, date of cancellation, and reason for cancellation (if applicable)
Fact Checked:6/8/21

Renewal Not Required

Not required



Employee leasing company licenses are issued for the life of the company.

Minnesota Employee Leasing Company Registration Exemption

Agency:Minnesota Department of Commerce Employee Leasing Company Registration Unit
Law:

MN Stat. § 79.255

Notes:
  • A corporation, partnership, sole proprietorship, or other business entity that provides personnel supply arrangements or agreements for the purpose of temporarily supporting or supplementing a client's work force in work situations, such as employee absences, temporary skill shortages, seasonal workloads, and specific functions and projects, may be exempt from the registration requirements of this section, provided that the arrangements or agreements do not involve the lease-back of the client's employees.
  • If a corporation, partnership, sole proprietorship, or other business entity operating under the exemption subsequently fails to meet the requirements for the exemption, the corporation, partnership, sole proprietorship, or other business entity must immediately surrender the exemption certificate and register with the commissioner.
Fact Checked:6/8/21

Initial Registration

Agency:Minnesota Department of Commerce
Instructions:

Instructions for applying for exemption.

Agency Fee:

$100

Notes:

There is no application for exemption. Instead follow the instructions for applying for an exemption.

Fact Checked:6/8/21

Renewal Not Required

Not required



Exemptions do not expire and remain valid for as long as the company continues to meet exemption qualifying criteria.

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

Minnesota Employment Agency License

Agency:Minnesota Department of Labor and Industry
Fact Checked:3/12/18

Initial Registration

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

Form:

http://mn.gov/elicense/a-z/?id=1083-230990#/detail/appId/0/id/230990

Agency Fee:

$250

Fact Checked:12/7/16

Registration Renewal

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

Form:

http://mn.gov/elicense/a-z/?id=1083-230990#/detail/appId/0/id/230990

Agency Fee:

$250

Due:

Annually

Fact Checked:12/7/16

Minnesota Talent Agency License

Agency:Minnesota Department of Labor and Industry
Notes:

Minnesota 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://mn.gov/elicense/a-z/?id=1083-230990#/detail/appId/0/id/230990

Agency Fee:

$250

Fact Checked:12/7/16

Registration Renewal

Form:

http://mn.gov/elicense/a-z/?id=1083-230990#/detail/appId/0/id/230990

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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