License & Permit
Employment Agency Bond
An employment agency bond is a license bond some states and cities require from agencies that charge job seekers a fee to find them work.
- Required by
- State or local labor or consumer licensing agencies
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state or city for the benefit of job seekers. It promises the agency will follow the employment agency law, for example by refunding fees as required. A job seeker injured by the agency who cannot recover directly from it can claim on the bond.
Who needs it
- Employment agencies that charge job seekers
- Job placement and job listing services
- Some executive search firms, depending on state law
What the underwriter looks at
- Fees charged and number of job seekers served
- Owners' credit
- Complaint history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond?
It varies. In Washington, D.C., it is $100,000 for agencies with an average fee of $2,000 or more and 100 or more job seekers a year, and $50,000 for smaller agencies.
Do staffing companies need this bond?
Usually not if the employer pays the fee. These laws target agencies that charge job seekers. Check your state's definition.