Employment Services Industry Licensing Guide
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Vermont Employment Agency

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Licensing requirements for Vermont employment, staffing and talent agencies.

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

Vermont Employment Services Company Licenses

Vermont Employee Leasing Company License

Agency:Vermont Department of Labor
Law:

21 V.S.A. § 1033

Financial Requirements:

An adjusted net worth of at least $100,000 or 5% of liabilities, whichever is greater.

Bond Requirements:

If the applicant does not meet the net worth requirement they must submit a bond in the amount of $100,000 or 5% of prior year's total Vermont wages, benefits, workers' compensation premiums or awards or unemployment compensation contributions.

Registered Agent (Special Agency) Required?Yes
Qualifying Individual Requirements:

Each controlling person of an applicant or licensee must:

(1) be at least 18 years of age; and

(2) have a personal history of honesty, trustworthiness, and fairness and a reputation for fair dealings and respect for the rights of others and for the law.

Initial Registration

Form:

Form EL-1: Employee Leasing Company Licensure & Registration Application

Instructions:

EL-7 Employer Leasing How to Apply

Agency Fee:

$100 application fee + $1,000 license fee

Before you Apply:
  • EL-3 Surety Bond Form or EL-4 Memo-of-Understanding and Letter of Credit
  • EL-2-Authorizing-Individual-Affidavit from each authorizing individual
  • C-50 Limited Power of Attorney for each client company
  • C-1 Business Registration for each Vermont client who does not already have an established account with the Vermont Department of Labor
  • EL-6 List of Vermont Clients
  • Proof of workers' compensation coverage for each Vermont client company. This should be a separate policy issued to each of the client companies.
  • Copy of each employee Leasing agreement
  • If you are licensed in any other state, provide a copy of each license.
  • A copy of your most recent audited financial statement that demonstrates that you have an adjusted net worth of at least $100,000 or 5 percent of the prior years Vermont wages, benefits, workers' compensation premiums or awards or unemployment compensation contributions, whichever is greater. The financial statement shall have been prepared within six months of the date of application by an independent certified public accountant licensed in Vermont.

Registration Renewal

Agency Fee:

$1,000

Due:

Annually at least 60 days before the expiration date of the license.

Amendment
Notice of Employee Leasing Agreement

Agency Fee:

$0

Due:

Within 10 days after the agreement is executed and within 10 days after an agreement is terminated.

Law:

21 V.S.A. § 1038

Notes:

Employee leasing companies must notify the department when contracts with clients are executed or terminated.

Supplemental Reporting
Quarterly Wage and Contribution Report

Form:

Form C-101: Employers Quarterly Wage and Contribution Report

Agency Fee:

$0

Due:

Quarterly

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

Vermont Employment Agency License

Not required



Employment Agency licensure is not required on the State level in Vermont.

Vermont Talent Agency License

Not required



Talent Agency licensure is not required on the State level in Vermont.

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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