Staffing agency license in Hawaii: HRS 373 agencies and 373L PEOs

Hawaii is one of the few states that still licenses employment agencies, and its definition reaches further than most. HRS chapter 373 covers anyone procuring employees for employers for a fee, so an employer-paid contingency desk needs a license, not just agencies that charge job seekers. Temporary staffing firms that employ their workers are excluded by rule. Professional employer organizations register separately with the labor department under chapter 373L.

This page covers who needs the chapter 373 license, the agency and principal agent licenses, fees, bond and renewal, the fee rules for applicant-paid placements, penalties, PEO registration and the employer accounts every Hawaii staffing firm needs. For a comparison with other states, see employment agency license requirements.

Who needs the license

Under HRS § 373-2, "No employment agency shall engage in business without a license." The definition in § 373-1 covers anyone "engaged in the business of providing employment information, procuring employment for applicants, or procuring employees for placement with employers upon request, for a fee or other valuable thing." The program is run by the Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs.

The temporary staffing line is drawn in the rules. HAR § 16-108-2 excludes a "labor contracting service or business where a person is hired as an employee of the labor contracting service or business and is directed by the service or business to work at various job sites." The program's FAQ puts it plainly: if the workers are your employees, you appear to be engaged in employee leasing and would not need the license. The test is who the employer is, not how long the job lasts.

I found no specific exemption for retained executive search in chapter 373 or the rules. A search firm paid for placements falls within the general definition, so treat it as an employer-paid fee agency unless the program tells you otherwise in writing.

Two licenses: the agency and the principal agent

Each agency must employ a licensed principal agent (§ 373-5; HAR § 16-108-21). The principal agent passes a certified employment consultant examination covering seven listed topics, with a passing score of 70 percent. If the agency loses its principal agent, its license is automatically suspended, and it is forfeited if no replacement is hired within 60 days (§ 373-13.5).

Separate branch office licenses ended in 2002, according to the program's application requirements. The license cannot be transferred, an agency may not operate from a home, apartment or hotel room without the director's approval, and changes to application information must be reported within 30 days.

Fees, bond and renewal

The program's employment agency page and application requirements list these totals as of October 2026:

• Term. Licenses are biennial and renew by June 30 of each even-numbered year (§ 373-3). A license not renewed is forfeited and may be restored within one year.
• Bond. A $5,000 surety bond, required only of agencies that collect fees from applicants (§ 373-4). If it lapses, the license is automatically forfeited.
• Business registration. The application requires proof of registration with the department's Business Registration Division and any trade name registration.

Fee rules for applicant-paid placements

Hawaii has no percentage cap. Instead, every fee must follow a schedule the director approves:

• Fee schedule. Filed by January 31 each year, changed at most once a year, effective only on approval (§ 373-10; HAR § 16-108-22), and posted in at least 18-point type. Even an employer-paid agency files one, stating that all fees are paid by employers.
• No upfront money. No registration fee or advance payment, and no applicant fee until the applicant is employed through the agency's efforts "and has received actual earnings from employment" (§ 373-11).
• Written contract. A pre-approved contract form showing the estimated fee in a bold, boxed statement, a statement that no fee is due until the first paycheck, and the agency's license number.
• Fee window. The applicant owes a fee only if they accept the referred job within 90 days of referral, or another job with the same employer within 30 days (HAR § 16-108-16).
• Refunds. Paid no later than ten working days after the request.
• Other limits. No promissory notes or wage assignments, and no applicant fee on any part of an employer-paid placement.
• Advertising. "100% Free" may be used only by agencies that are entirely employer-paid, and a job may not be advertised as "Fee Paid" if the employer's payment is conditional.

I found no Hawaii rule on conversion fees that a staffing firm charges a client or on no-hire clauses. Those are contract terms; see temp-to-perm conversion fee for how they are usually written.

Penalties

• Discipline. Revocation, suspension, or a fine of up to $1,000 per violation (§ 373-14).
• Criminal. A fine of up to $1,000, up to six months in jail, or both (§ 373-20).
• Unlicensed activity. Under the general licensing law, citations of up to $500 for a first violation rising to $5,000, or 40 percent of the value of the services if greater (§ 436B-26.5), and a misdemeanor in which "each day of unlicensed activity shall be deemed a separate offense" (§ 436B-27).

PEO registration under chapter 373L

A professional employer organization must register with the Director of Labor and Industrial Relations before entering any professional employer agreement in Hawaii (§ 373L-2). Temporary help services are expressly exempt.

• Fees. $500 to register, $750 to renew, $1,500 to restore (§ 373L-8).
• Renewal. Registration expires June 30 of each even-numbered year; the PEO files its IRS Form W-3 every year by June 30.
• Bond or letter of credit. $25,000 for payroll up to $25 million, $75,000 up to $150 million, and $250,000 above that (§ 373L-3). Without a current bond, registration is forfeited.
• Application. General excise tax number, ownership and management statements, proof of workers' compensation, temporary disability, prepaid health care and unemployment compliance, and notices of new or ended client agreements within 21 business days.

Employer accounts for a Hawaii staffing firm

• General excise tax license. A one-time $20 fee before doing business; operating without one carries a fine of up to $500 (§ 237-9).
• Workers' compensation. Required from the first employee (§ 386-1). Failing to insure costs the greater of $500 or $100 per employee per day (§ 386-123). See staffing agency insurance requirements.
• Unemployment insurance. Liability begins with one employee for some portion of a day (§ 383-1). I found no Hawaii statute requiring temps to contact the agency for reassignment.
• Temporary disability and prepaid health care. Hawaii also requires temporary disability insurance and employer-provided health coverage for employees working enough hours, which a temp firm owes as the employer of record.
• Job postings. Larger employers must include pay ranges; see Hawaii pay transparency law.

I found no Hawaii registration law for nurse or health care staffing agencies, no state farm labor contractor license and no separate talent agency license as of October 2026. If you also place on the mainland, compare California's rules, which split licensing very differently.

A Hawaii checklist

HAWAII CHECK — [date] — owner: [name]

Model:
  [ ] Employer-paid direct hire/search: agency license, fee schedule filed
  [ ] Candidate-paid fees: license + $5,000 bond + approved contract
  [ ] Temp/contract, we employ: excluded (HAR 16-108-2); keep basis on file
  [ ] Co-employment of client workforce: 373L registration with DLIR

If licensed:
  Agency license and principal agent license          [ ]
  Fee schedule filed by January 31                    [ ]
  Renewal by June 30, [even year]                     [ ]

Employer accounts:
  GET license                                         [ ]
  Workers' comp, TDI, prepaid health care             [ ]
  UI account                                          [ ]
Next review: [date]