Staffing agency license in Louisiana: private employment service rules

Louisiana licenses private employment services that charge a fee, through the state workforce agency, which was renamed Louisiana Works in 2025 after many years as the Louisiana Workforce Commission. The license is aimed at services that charge job seekers. Businesses that exclusively employ workers to furnish contract or temporary help are excluded by statute, and so are employer-fee-paid services, though the statute's own definitions muddy that second exclusion. PEOs register separately, and nurse staffing agencies are licensed by the Louisiana Department of Health.

This page covers who needs the license, fees and bond, the limits on fees charged to applicants, penalties, PEO registration, and the employer accounts a staffing firm needs regardless. For a cross-state comparison, see employment agency license requirements.

Who needs a license

La. R.S. 23:101 defines an employment service as a person who, for a fee, offers or attempts to procure employment for an applicant or candidate, or procures or attempts to procure an employee for an employer. Under R.S. 23:104, no one may operate, solicit or advertise an employment service in Louisiana without a license, and a separate license is required for each office. Each licensee, manager and on-site consultant must also pass a written exam.

The exclusions in R.S. 23:102 decide most staffing questions:

Two details matter. First, the temp exclusion says "exclusively." A firm that runs temporary staffing and also makes fee-based placements is not obviously covered by subsection (A) for the placement side. Second, R.S. 23:101 still defines an "exclusively employer fee paid service" as a licensee that has certified in writing to Louisiana Works that it charges only employers, which sits awkwardly with the subsection (E) exclusion. I could not confirm how Louisiana Works applies the two together. An employer-paid search firm should ask Louisiana Works in writing whether it needs anything at all and keep the reply.

Fees, bond and renewal

• License fee: $200 per year for each location, plus a $300 investigation fee and a $100 examination fee on first application (R.S. 23:105). An active licensee opening another office does not pay the investigation and exam fees again.
• Bond: $5,000 per licensed office, conditioned on compliance and on honoring contracts with applicants and employers, expiring December 31 with the license (R.S. 23:106).
• Term: licenses run to the next December 31. Renewals are due by the last business day of the year, and a license lapsed more than 90 days is treated as a new application (R.S. 23:107).

The Louisiana Works private employment services page lists the governing statutes and directs applicants to them; it does not publish separate fee figures.

Limits on fees charged to applicants

R.S. 23:111 regulates fees charged to applicants, meaning job seekers who sign a contract to pay a fee:

• The fee schedule must be posted and approved, and Louisiana Works may regulate its reasonableness.
• No registration fees. Fees only for placements the service actually procured, plus résumé preparation capped at $50.
• The fee is based on projected first-year gross earnings. If the job ends within 90 days, it cannot exceed 20 percent of gross earnings actually paid, with any refund due within 14 days of written verification.
• Payroll deductions are capped at 20 percent of gross wages per pay period.
• No fee at all for jobs advertised as employer-paid or for placements with government employers.

R.S. 23:111(D) states that nothing in the section authorizes regulating charges to employers. I found no Louisiana statute on temp-to-perm conversion fees, so those are a matter of contract; see how to negotiate recruitment fees.

Penalties

Acting as an employment service without a license is punishable by a fine of $50 to $1,000 per violation, up to six months in jail, or both (R.S. 23:113). Licensees who violate the Part can be fined up to $500 per violation, suspended for up to a year or revoked under R.S. 23:108, and an injured applicant can recover what they paid plus damages and attorney fees. Louisiana Works can also seek an injunction under R.S. 23:115.

PEOs: two registrations

• Louisiana Works. Under R.S. 23:1761 to 23:1769, no person may act as a PEO unless validly registered. Staffing services, including temporary staffing, are excluded from the definition. Registration is annual with a fee set by rule, which I could not confirm. A PEO that posts a $100,000 surety bond releases its clients from joint unemployment insurance liability and separate reporting; without the bond, PEO and client remain jointly liable.
• Department of Insurance. R.S. 22:1741 to 22:1751 require an annual statement filed with the Department, with fees capped at $500 initial and $300 renewal, and a separate workers' compensation policy for each client through an admitted insurer. I could not confirm the fee the Department currently charges.

Nurse staffing agencies

Since 2022, nurse staffing agencies need a license from the Louisiana Department of Health under R.S. 40:2120.11 to 40:2120.24. As of October 2026 the statute sets a $1,200 fee every two years, requires workers' compensation of at least $1 million and malpractice coverage, and makes operating unlicensed a misdemeanor punishable by $250 to $1,000 per day. If you place nurses with Louisiana facilities, this license is required even though general temporary staffing is excluded from the employment service law.

Employer accounts every Louisiana staffing firm needs

• Unemployment insurance. Register with Louisiana Works for a state UI account.
• Workers' compensation. Secured under the Louisiana Workers' Compensation Act; see staffing agency insurance requirements for what clients expect on top.
• E-Verify and hiring checks. Louisiana has its own E-Verify rules for some employers and contractors; see E-Verify requirements in Louisiana.
• Business and tax registration. Secretary of State filing and Department of Revenue withholding account.

What to ask Louisiana Works before you rely on an exclusion

Because the employer-paid exclusion and the "exclusively employer fee paid service" definition point in different directions, a short written inquiry is cheaper than guessing. Useful questions:

1. Our firm is paid only by employers and never contracts with candidates for a fee. Does R.S. 23:102(E) mean we need no license, or should we certify as an exclusively employer fee paid service?
2. We employ temporary workers and also make occasional direct-hire placements for an employer-paid fee. Does the direct-hire activity take us outside the "exclusively" wording in R.S. 23:102(A)?
3. We have no Louisiana office but recruit for Louisiana employers. Does R.S. 23:104's "solicit, or advertise" language reach us?

File the reply with your entity records. If a client or candidate later disputes a fee, that letter is the evidence that you checked.

A Louisiana checklist

LOUISIANA CHECK — [date] — owner: [name]

Model:
  [ ] Exclusively temp/contract, we employ: excluded (23:102(A))
  [ ] Employer-paid search: 23:102(E); written answer from Louisiana Works
  [ ] Applicant-paid fees: license, exam, $5,000 bond, 23:111 limits
  [ ] Nurse staffing: LDH license (40:2120.14)
  [ ] PEO: Louisiana Works registration + LDI annual statement

If licensed:
  $200/location + $300 investigation + $100 exam     [ ]
  Bond on file, expires December 31                  [ ]
  Fee schedule posted and approved                   [ ]

Employer accounts:
  Louisiana Works UI account                         [ ]
  Workers' comp in force                             [ ]
  Revenue withholding account                        [ ]
Next review: [date]