Employment Agency Bonds

License & Permit

What is an employment agency bond?

Any person or business that charges a fee to find someone a job is required by statute to post an employment agency bond to legally operate. The bond guarantees the agency will meet state licensing, compliance, and financial requirements — a guarantee of financial stability and legal compliance to the agency’s clients. This applies to agencies large and small: temp agencies, staffing firms, job-listing services, and recruiters all fall under the requirement in states that impose it.

Who does the bond protect?

Consumers of the agency’s services. The bond benefits any person damaged by fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts or omissions, or failure to provide the contracted services — whether by the agency itself or its agents, representatives, or employees acting within the scope of their employment. State rules enforced through the bond include prohibitions on false or misleading advertising, on directing candidates to employers known to be violating labor laws, on forcing people to work for the agency, and on supplying workers to a company during an active strike.

If an agency violates these terms, the surety pays damaged parties up to the penal sum of the bond — and the agency must then indemnify the surety for all damages paid, including legal fees.

Does an employment agency have to be licensed?

Yes. The law requires all employment agencies to be licensed by the State Commissioner of Labor (in New York City, through the Department of Consumer Affairs). Note for NYC agencies: all NYC DCA employment agency bonds share a single fixed expiration cycle, renewing on the same date every two years regardless of when the bond was purchased.

Underwriting — often with no credit check

Some bonding companies underwrite these bonds on the owners’ personal credit, with elevated rates for lower scores. We represent surety companies that run no credit check for standard employment agency bonds — a hassle-free, guaranteed-approval process for common requirements like the New York City Employment Agency Bond.

States requiring employment agency bonds

Arizona, Arkansas, California (employment agency; employment counseling service; prepaid computer employment agency and job listing services), Connecticut, Delaware, Florida (City of Miami Beach), Hawaii (commercial and standard), Illinois (employment agency; private employment agency), Indiana, Iowa, Kentucky, Maryland, Massachusetts, Minnesota (search firm), Nebraska, Nevada, New Jersey, New York State, New York City (employment agency; recruitment of foreign or domestic household employees; theatrical employment agency), North Dakota, Oklahoma (state; City of Oklahoma City; private), Oregon (standard and private), Rhode Island, South Carolina, Texas (employment agency; personnel employment service), Virginia, Washington, Washington DC, Wisconsin, and Wyoming.

Get a free quote at bfbond.net/license/ or call 800.921.1008.