Employment and Staffing Agency Licenses
It is vital that employment and staffing agencies operate within the laws of each state and hold the proper licenses to protect their reputations and avoid serious penalties. Many states have laws and regulations related to this industry and require employment and staffing agencies to maintain a specific license. These laws were enacted to protect workers so states are diligent about informing their constituents to only work with properly licensed agencies. Be certain your employment or staffing agency is in compliance with state licensing laws by using LicenseLogix to prepare, file, and maintain your employment agency or staffing agency license.
Businesses that procure, or attempt to procure, employment for individuals are often required to obtain a state employment agency license. License and applications fees range from $25 - $1,500 per jurisdiction. A general manger of the agency may be subject to a state examination and an individual professional license, and a surety bond in the name of the entity may be required with each application. Other common requirements include examples of proposed contracts and schedules of fees, financial statements, and supporting corporate documents. Licenses are valid for a certain period of time (1-3 years) and must be renewed.
Ramifications of Non-Compliance
Unlicensed employment or staffing agencies face sweeping penalties. Fines ranging from $1,000 - $25,000 may be imposed, depending on the state. Unlicensed employment agencies may be ordered to restore any money that was paid to them by a client while they were operating as an unlicensed agency. In addition, the state can prohibit the agency from operating in that state in the future.
How we help your business:
- We will save you time because our licensing specialists are well-versed in all state license types, requirements, and applications.
- Our flat rate service fee will save you money by taking a time-consuming task off of your desk for a fraction of what it would cost elsewhere.
- We will ensure that your application is filed correctly and that you are operating in compliance with the law.