Professional Employer Organization Licensing

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Businesses that conduct human resources responsibilities and act as co-employers with their clients are often required to hold a professional employer organization (PEO) license. In some cases, these licenses are referred to as employee leasing company licenses. Although employee leasing companies provide slightly different services, most states use these license types interchangeably.

Professional employer organization licenses are required in 35 states. Entities should register with the secretary of state prior to applying for a license. Along with the application, entities are often required to meet a bonding requirement, provide proof of worker’s compensation insurance, and usually a financial statement. A dedicated compliance expert can help you keep track of varying jurisdiction requirements and updated laws.

Overview By State

Looking for PEO 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

Agency

Alabama Department of Labor

Initial Application

License Renewal

Alaska

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Not required

Arizona

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Not required

Registration requirements were put on hold until 2023.

Arkansas

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Agency

Arkansas Insurance Department

Initial Application

License Renewal

Fee:

$1,000

Form:

Form PEO-PR: PEO Renewal Application

Due:

Biennially

California

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Not required

Colorado

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Agency

Colorado Department of Labor and Employment

Initial Application

License Renewal

Connecticut

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Agency

Connecticut Department of Labor - Division of Wage and Workplace Standards

License Renewal

Fee:

$1,000


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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Not required

Florida

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Agency

Florida Board of Employee Leasing Companies

License Renewal

Fee:

$250

Filing Method:

Online

Due:

Biennially


Agency

Florida Board of Employee Leasing Companies

Initial Application

Fee:

$1150 if submitted in the first year of the biennium which ends on April 30 of even-numbered years. $700 if the application is submitted in the second year.

Form:

https://www.myfloridalicense.com/intentions2.asp?chBoard=true&boardid=63&SID=

License Renewal

Georgia

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Not required

Hawaii

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Agency

Hawaii Department of Labor and Industrial Relations

Idaho

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Not required

Illinois

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Agency

Illinois Department of Insurance

Initial Application

License Renewal

Indiana

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Agency

Indiana Department of Insurance

Initial Application

License Renewal

Fee:

$250

Form:

http://www.in.gov/idoi/2373.htm

Due:

Annually

Iowa

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Not required

Kansas

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Agency

Kansas Insurance Department

Initial Application

License Renewal

Kentucky

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Agency

Kentucky Labor Cabinet - Department of Workers' Claims

License Renewal

Louisiana

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Agency

Louisiana Department of Insurance

Maine

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Agency

Maine Department of Professional and Financial Regulation - Bureau of Consumer Credit Protection

Maryland

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Not required

Massachusetts

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Agency

License Renewal

Michigan

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Agency

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

Initial Application

Fee:

$3,054 from May 1st to November 30th, $2,665.50 from December 1st to February 28th, and $2,277 from March 1st to April 30th.

Form:

http://www.michigan.gov/lara/0,4601,7-154-61343_35414_36748-340300--,00.html

License Renewal

Fee:

$3,054 from May 1st to November 30th, $2,665.50 from December 1st to February 28th, and $2,277 from March 1st to April 30th.

Form:

http://www.michigan.gov/lara/0,4601,7-154-61343_35414_36748-340300--,00.html

Due:

Annually

Minnesota

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Agency

Minnesota Department of Commerce

License Renewal

Not required


Agency

Minnesota Department of Commerce

Initial Application

License Renewal

Mississippi

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Not required

Missouri

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More Info

Agency

Missouri Secretary of State - Corporations Division

Initial Application

Form:

MO PEO Full Application

Filing Method:

Mail or Online

License Renewal

Form:

MO PEO Full Application

Filing Method:

Mail or Online

Due:

Annually 180 days after the close of your organization's fiscal year.  If your fiscal year closes December 31, then renewal is due June 29.


Not required


Agency

Missouri Secretary of State - Corporations Division

Initial Application

Form:

MO PEO Limited Application

Filing Method:

Mail or Online

License Renewal

Form:

MO PEO Limited Application

Filing Method:

Mail or Online

Due:

Annually 180 days after the close of your organization's fiscal year.  If your fiscal year closes December 31, then renewal is due June 29.

Montana

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Agency

Montana Department of Labor and Industry

Nebraska

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Agency

Nebraska Department of Labor

Initial Application

License Renewal

Nevada

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Agency

Nevada Department of Business and Industry

Initial Application

License Renewal

Fee:

$500

Form:

http://dir.nv.gov/WCS/PEO/

Due:

Annually

New Hampshire

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Agency

New Hampshire Department of Labor

New Jersey

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Agency

New Jersey Department of Labor and Workforce Development - Employer Accounts

License Renewal

New Mexico

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Agency

New Mexico Regulation and Licensing Department

License Renewal

New York

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Agency

New York State Department of Labor

North Carolina

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More Info

Agency

North Carolina Department of Insurance

License Renewal

Fee:

$0

Form:

PEO-19 - Professional Employer Organization Annual De Minimis Registration Notification

Due:

Due annually between January 1st and January 15th.


Agency

North Carolina Department of Insurance

North Dakota

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Agency

North Dakota Secretary of State

Ohio

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Not required

Oklahoma

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Oregon

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Agency

Oregon Workers' Compensation Division

License Renewal

Pennsylvania

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Not required

Rhode Island

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Agency

Rhode Island Department of Revenue - Division of Taxation

Initial Application

License Renewal

South Carolina

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Agency

South Carolina Department of Consumer Affairs

License Renewal

South Dakota

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Not required

Tennessee

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Agency

Tennessee Department of Commerce and Insurance

Initial Application

License Renewal

Fee:

$2,000

Form:

Employee Leasing Renewal Application

Due:

Biennially

Texas

Our Resources:

More Info

Agency

Texas Department of Licensing and Regulation

Initial Application

Fee:

$300 for employers with 249 or fewer employees, $450 for employers with 250-749 employees, and $700 for employer with 750 or more employees.

Form:

https://www.tdlr.texas.gov/peo/peoforms.htm

License Renewal

Fee:

$300 for employers with 249 or fewer employees, $450 for employers with 250-749 employees, and $700 for employer with 750 or more employees.

Form:

Renewal forms are sent by mail.

Due:

Annually


Agency

Texas Department of Licensing and Regulation

License Renewal

Fee:

$300

Form:

Renewal forms are sent by mail.

Due:

Annually

Utah

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More Info

Agency

Utah Insurance Department

License Renewal


Agency

Utah Insurance Department

Initial Application

License Renewal

Fee:

$2,050

Form:

https://insurance.utah.gov/licensee/other/peo

Due:

Annually by September 30.

Vermont

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Agency

Vermont Department of Labor

Virginia

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Agency

Virginia Workers' Compensation Commission

License Renewal

Fee:

Based on payroll information from the previous year.

Form:

https://webfile.workcomp.virginia.gov/portal/vwc-portal

Due:

Annually

Washington

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Not required

Washington PEOs may need to file a brief registration every time they enter an agreement with a Washington based client.

West Virginia

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Agency

West Virginia Offices of the Insurance Commissioner - Financial Conditions Division

Wisconsin

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Agency

Wisconsin Department of Financial Institutions

License Renewal

Wyoming

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Not required

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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