Employment agency surety bond requirements by state (2026): amounts, who needs one and the statute
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As of October 2026, we confirmed a surety bond in the rules that license or certify employment, talent or temporary help agencies in 22 states, the District of Columbia and Puerto Rico, each from the state's statute or regulator, and a few more states ask staffing firms for other bonds. Most apply only to agencies that charge job seekers a fee, and amounts run from $500 in Kansas and Wyoming to $30,000 in Iowa, $50,000 or $100,000 in the District of Columbia, and $200,000 for New Jersey temporary help firms making designated classification placements. Indiana dropped its requirement when it repealed agency licensing in 2023. A bond is not insurance: it guarantees your compliance to the state, and you repay the surety for any claim it pays.
This page puts the bond figures in one table. Whether you need a license at all, and the exemptions, are covered state by state in employment agency license requirements; the policies an agency insures itself with are in staffing agency insurance requirements. This is general information, not legal advice.
Which states require an employment agency surety bond?
Each row was checked on the statute or the agency's own page or form in October 2026. "Who" summarizes who must post the bond; the linked state guide explains exemptions in full. A state missing from the table either has no agency bond we could confirm or is covered under "other bonds" below.
| State | Who must post it | Bond amount | Source |
|---|---|---|---|
| Alaska | Employment agencies needing a Department of Labor permit | $10,000 numbered surety bond; a separate bond for each kind of agency | 8 AAC 10.050 (the statute, AS 23.15.360, allows $1,000 to $10,000) |
| California | Employment agencies, employment counseling services and job listing services under the Civil Code act | $3,000 agency; $10,000 counseling service; $10,000 job listing service | Civil Code §§ 1812.503, 1812.510, 1812.515; Secretary of State forms SFSB-449, 450, 451 |
| Connecticut | Licensed employment agencies | $7,500 | Gen. Stat. § 31-130(e) |
| District of Columbia | Employment agencies and counseling services that charge job seekers; job listing services | $100,000 if the average job-seeker fee is $2,000 or more and 100 or more job seekers contract a year, otherwise $50,000; $5,000 job listing; none for employer-paid personnel services | D.C. Code § 32-403 |
| Florida | Talent agencies only | $5,000 | Fla. Stat. § 468.408 |
| Hawaii | Employment agencies that collect fees from applicants | $5,000 | HRS § 373-4; DCCA FAQ |
| Illinois | Licensed private employment agencies; firms paid solely by employers are excluded | $5,000 | Illinois Department of Labor FAQ |
| Iowa | Agencies receiving a fee from the employee | $30,000 | Iowa Code § 84I.2 |
| Kansas | Licensed private employment agencies | $500 | K.S.A. 44-403 |
| Louisiana | Licensed private employment services | $5,000 for each licensed office | La. R.S. 23:106 |
| Massachusetts | Licensed employment agencies | $3,000 | M.G.L. c. 140, § 46F |
| Michigan | Licensed personnel agencies | $10,000 surety or cash bond | MCL 339.1006 |
| Nevada | Licensed employment agencies | $1,000 | NRS 611.070 |
| New York | Licensed employment agencies (state DOL outside New York City, DCWP inside it) | $5,000; $10,000 to recruit domestic or household employees from outside the continental US or to run a modeling agency | Gen. Bus. Law § 177 |
| North Carolina | Licensed private personnel services | $10,000 | G.S. 95-47.2(j) |
| North Dakota | Licensed employment agents | $5,000 | N.D.C.C. 34-13-05 |
| Oregon | Employment agencies that charge applicants (employer-paid services are excluded) | $5,000 bond or irrevocable letter of credit | ORS 658.075 |
| Puerto Rico | Licensed private employment agencies | $3,000 (the law lets the Secretary set the amount) | 29 L.P.R.A. § 566; DTRH application |
| South Carolina | Licensed private personnel placement services | $3,000 surety bond, or $25,000 in other approved security | S.C. Code § 41-25-30(D) |
| Utah | Agencies licensed by a city, town or county | $1,000, deposited with the local treasurer | Utah Code § 34-29-4 |
| Washington | Licensed employment agencies | $2,000 | RCW 19.31.090 |
| Wisconsin | Licensed employment agents (those charging job seekers); employer-paid agents register instead | $5,000 | Wis. Stat. § 105.06(1) |
| Wyoming | Licensed employment agencies | $500 | W.S. 27-8-103 |
New Jersey is in the next table because its biggest bond attaches to a temp-firm certification rather than the agency license. California's Secretary of State lists employment agencies, employment counseling services and job listing services among the professions whose bonds are filed with it (California SOS, bond information).
What other bonds do staffing firms run into?
| State | Bond | Amount | Source |
|---|---|---|---|
| New Jersey | Temporary help service firms certified to make "designated classification placements" (production, transportation and material moving, cleaning, food service, construction labor and similar occupations); one bond may cover all locations; exemption for qualifying collective bargaining agreements | At least $200,000, kept at that level | Division of Consumer Affairs guidance, October 2024; DCP application instructions; N.J.S.A. 34:8D-8(b) |
| New Jersey | Health care service firms | $10,000, which the Director may waive for a net worth of $100,000 or more | N.J.A.C. 13:45B-13.3 |
| Minnesota | Supplemental nursing services agencies: employee dishonesty bond | $10,000 | Minn. Stat. § 144A.71 |
| Rhode Island | Employee leasing and temporary help service companies certified by the Division of Taxation for less than two years: a tax bond each year | $50,000 | Division of Taxation Form EMP-APP |
| Indiana | None for private employment agencies since licensing was repealed effective July 1, 2023; temporary healthcare service agencies register with the Department of Health | Not applicable | Indiana Department of Revenue |
Professional employer organizations face their own bond or net-worth rules in many states, and a retirement plan brings an ERISA fidelity bond; both are covered in the state license guides and the insurance guide linked above. Clients may also require a crime or fidelity bond in a supplier agreement, which is a contract term, not a license.
How is a surety bond different from insurance?
A surety bond has three parties: the surety (an insurance company) guarantees to the obligee (here, the state) that the principal (your agency) will perform its obligation, as the Surety and Fidelity Association of America defines it (SFAA, what is a surety bond). License and permit bonds are their own category. The statutes say who the bond protects: Louisiana's runs to the assistant secretary for violations of the employment service law; D.C.'s is "for the benefit of any job-seeker injured" by the agency.
The difference that matters to an owner is who pays in the end. The Texas Department of Insurance explains that an indemnity agreement, signed with the bond application or separately, means the surety is "completely indemnified" against any liability, loss, cost and legal fees from serving as surety, and that some sureties also take collateral (TDI, bond resources). So a claim paid on your bond is a debt you owe the surety. Insurance protects your agency; the bond protects job seekers and the state from your agency.
What does a bond cost compared with the bond amount?
The bond amount (the penal sum) is the most the surety will pay on claims; you pay a premium, usually each year, to have the bond in place. TDI notes that surety companies file the rates they use, and the rate you are quoted depends on how the surety underwrites your business, and some sureties also ask for collateral. We do not cite a typical rate, because none of the state sources publishes one.
Example (the rate is invented for illustration, not a market figure): Michigan requires a $10,000 bond. If a surety quoted you 2% a year, your premium would be $10,000 x 2% = $200 a year. If a valid claim of $4,000 were paid, the surety could recover the $4,000 from you under the indemnity agreement, and the state could require the bond to be restored or replaced.
How do you file and renew an employment agency bond?
- Use the state's form. Michigan requires the bond "on a form provided by the department"; California's Secretary of State publishes separate forms for agencies, counseling services and job listing services.
- Use a surety authorized in that state. North Carolina, Louisiana and California all require a surety authorized or admitted to do business in the state, and Puerto Rico requires an insurer authorized there.
- File before the license issues. Nevada and North Carolina require the bond before a license is issued, and North Carolina again before each renewal; Washington requires it before you conduct any business.
- Keep it in force through every renewal. North Dakota asks for a new bond or a continuation certificate with each renewal; the District of Columbia requires evidence that the bond remains in force; New York City's DCWP asks for a receipt showing the bond is paid in full and does not expire before the end of the licensing period (DCWP checklist).
- Watch for cancellation notices. Nevada and South Carolina require 30 days' notice before a surety cancels; replace the bond before the date or the license is at risk.
- File one per location where required. Louisiana bonds each licensed office; New Jersey's DCP certification is per location but one $200,000 bond can cover them all.
Do you need one at all?
Answer these for each state where you recruit or place workers:
- Do we charge candidates any fee? If yes, most of the bond statutes above apply to you.
- Does the state license employer-paid agencies too, even if it does not bond them? The District of Columbia, for example, licenses employer-paid personnel services but sets no bond for them; the state guides say which states license whom.
- Do we place temps in New Jersey in production, material moving, cleaning, food service or similar occupations?
- Are we a temp or leasing firm newly certified in Rhode Island?
- Do we staff nurses or other health care workers, which brings separate registrations in several states?
If every answer is no, you probably need no state agency bond, though client contracts may still ask for a crime bond. Confirm with the state agency or counsel before you rely on that, because licensing rules change; the full checklist for opening an agency is in how to start a staffing agency.
Questions people ask
Does Indiana still require an employment agency bond?
No. Indiana repealed private employment agency licensing effective July 1, 2023, according to the Indiana Department of Revenue, so private employment agencies no longer register or renew with the state. Temporary healthcare service agencies must instead register with the Indiana Department of Health.
How much is the Louisiana private employment service bond?
$5,000 for each licensed office, filed with the assistant secretary before the license is granted, under La. R.S. 23:106. The law does not apply to businesses that only employ people to furnish contract or temporary help, or to employer-fee-paid services, under La. R.S. 23:102.
Is an employment agency surety bond the same as insurance?
No. A surety bond is a guarantee to the state, for the benefit of job seekers or others the agency harms, that the agency will follow the law. If the surety pays a claim, the agency must repay it under the indemnity agreement it signed. Insurance protects the agency itself; the bond protects the people the statute is written for.
Do staffing agencies that only charge employers need a surety bond?
In most states, no. Many bond statutes apply only to agencies that charge job seekers a fee, and several exclude temporary staffing firms or employer-paid recruiters. But some states license employer-paid agencies too, New Jersey requires a $200,000 bond from temporary help firms making certain placements, and Rhode Island requires a tax bond from newer temp firms, so check each state where you operate.